Study Of Governmental Inflation Management

Currency inflation has been a worldwide difficulty, since the globalization of world in last century. Experts focused on studying the inflation of developing countries, due to their more and more important positions in the world economy since 1980th. There are many different theories on currency inflation, owing to multifarious investigations by the researchers all around the world. Under the conditions of open economy, inflation studies have made great achievements, but still focused on the introduction of foreign theories and applications and ignored their own specific research question. After entry into WTO, inflation of our country was driven by multiple factors, such as excessive demand and production cost. Therefore, balance of supply and demand and System reformation should be carried out to treat the inflation.There are four chapters in this thesis. In the first chapter, we introduce the definition, measurement, influence, and some theories of inflation. In the second chapter, experiences of treatment by the developed America, Britain, and Japan were introduced as a reference of inflation management in China. Chapter 3 reviewed the inflations in China after the opening-up of its economy. We came to a conclusion that inflations in China were highly effected by its irrational economic structure and worldwide circumstance and summarized some problems of previous treatment. In the last chapter, considering economic environment of the domestic and abroad, solutions on different fields were proposed.Through comparing and analyzing the data on Consumer Price Index (CPI), Producer Price Index (PPI), and Classified Consumer Price Index, we deeply investigated the present inflation and explored the approach, guarantee, and mechanism of inflation treatment.