Study On Inflation Transmission Under The Condition Of Economic Globalization

Currently, countries across the world are getting more and more involved in the global economy and gradually becoming a part of the world economy as well as the world division and trade system. The expanding trade volume and increasing trade dependence have made a stronger mutual dependence between different countries or regions. Inflation also becomes more and more international, imported inflation accounting for the vast majority.The international transmission of inflation contains both economic and political aspects:inflation is an economic phenomenon, while its transmission is involved in the political game between different sovereign countries or regions. Studying transmission ways of specific economic phenomenon will help to take specific measures to control and prevent the global impact of regional deterioration.Imported inflation transmits via various ways, both of ways attached to specific economic activities, and of spiritual ways of demonstration and inculcation. This paper reviews various theoretical and computational model of transmission, and highlights the importance of "contagion", which contains both "bad contagion" of inflation transmission represented by debt and "good contagion" of inflation restraint represented by targeting.Selecting three levels of specific economic phenomenon of monetary system, macroeconomic policy, and micro-economic activities, this paper uses Syllogism of qualitative analysis of basic theory and computational model, description of transmission ways, and transmission ways verified by quantitative date to study the ways of mutual impact of inflation and its internal mechanism.Targeting is a measure to control inflation and to some extent a restraint to transmission. The key to its success is national credit, policy transparency and accountability system, which produces public confidence of firm consumption and stable consumption demand.In the last part, drawing on the experience of inflation transmission management of different counties and our national situation, this paper puts forwards suggestions of transmission restraint or improvement.