After Financial Crisis China’s Inflation Cause Analysis And Policy Recommendations

Inflation is the world’s widespread economic phenomenon, the different historicalperiod have different forms, the common lies in: a certain period of the general price levelin common, large-scale, continued to rise. The research on inflation, whether as a pureeconomic theory research or as the reference to the policy measures, it has very good sense.China, a new round of inflation pressure appear in the end of2009, the CPI’s year-on-yeargrowth for the first time after the financial crisis become positive, and rise quickly. How tocontrol inflation is the very important thing of the government.After the financial crisis the government launched four trillion investment policy, thisis the starting point of the research. Through the analysis of investment growth to inflationpathways, suppose the four trillion investment policy is the cause of inflation. Then use theeconomic data to test the assumption, the selection of the latest data as the basis, throughthe establishment of the VAR model and the follow-up of a series of measurement methods,finally concluded that the large growth of investment in China is the cause of inflation.