Open Inflation In Economic Conditions

Inflation, a complex social economical phenomenon, can change the relative price system of commodities and the manufacturing materials; moreover it will have far-reaching effect on the macro-economy by means of actual output, consumption, resource allocation and etc. Therefore, the research on inflation has been of great importance in the field of economic and finance. Under the process of economic globalization, enhancing the research on inflation under the open economy has been consensus in academic community. Since the implementation of reform and open-up policy, the degree of open-up has been enlarged unceasingly, the connection between domestic and international market is getting more and more close, meanwhile, the domestic price is increasingly affected by the international factors. Thus, the analysis on this round of China's inflation starting in 2003 should be focused on the background of open-up economy; to study the influence of internal and external factors on inflation, which is helpful to carry out anti-inflation policy to maintain the stability of macro-economy.Firstly, according to the existing research on inflation theory under the open-up economy, the thesis learns that inflation results from the common influence of various factors. On the basis of existing research conclusion, we build up the framework, upon which we analyze the inflation in aspect of currency, supply&demand, structure and system. Secondly, it analyzes the causes of this round of global inflation and predicts its development trend in order to highlight the international transmission characteristics of inflation in our country. Thirdly, the thesis analyzes the causes of our country's inflation, originated in 2003, in perspective of currency, supply&demand, structure and the system. After which, it elaborates the influence of global inflation on our country under international trade channel and capital flow channel. Respectively, it studies the influence of global oil price on domestic one under international trade background, and the impact of capital inflow on our currency under capital flow channel. Above mentioned shows external factors really work in this round of inflation at some degree.Finally, the thesis puts forward some countermeasures to relieve the negative effecth of the inflation under the circumstances of open-up economy. Because the current inflation in our country embodies defects in the structure and system aspects, we advocate the effective countermeasures, to strengthen the resistance to the negative effect of external inflation, should be as followings: adjusting the industrial structure; reinforcing the control of the foreign exchange reserve; setting long-and-mid term strategies of the energy sources utilization, etc.