Theoretical And Empirical Study Of China’s Imported Inflation Mechanism

Accession to the WTO for ten years,China has experienced significant inflation.forthree times.The causes of inflation has always been a research focus in domesticacademia.And the new round of inflation since2010,its couses did rouse moreextensive argument.The more representative insight in a variety of views is that theround of inlation in China has significant inported inflation characteristics.In view ofthis,the paper take the thory from Keynesianism,Monetarist school,Structuralistschool about the pass-through mechanism and pass-through path of internationalinlation as the theoretical basis.From the channels of internationnal trade and thechannels of internationl capital distribution to analyze the impact of input factors onChina’s inflation.Trough the analysis of the existing internal and external conditions which couldlead to inported inflation in China,the paper analysis the China’inported inflationproblem conprehensively from the Aggregate Supply-Aggregate Demand channel,thechannels of capital flows and the price transmission channels.And take the currentaccount surplus,capital surplus and the price of commodity importing as the entrypoint of the three transmission channels,then use the JJ cointergration model,theGranger causality model and the VEC model to make the empirical analysis of theimpact of imported inflation factors on inflation in China. lThe empirical result showsthat international input factors do not have significant impact on China’inflation,bothin the short term and long term.Therefor it can not support the point that the currentround of inflation in China has the significant characteristic.But also,from the empirical analysis result,China has a strong inflation inertiacharacterristics. So,the paper spend some chapter on the introduction of the theory ofinertia inflation.And in accordance with the theory,the paper further analysis thesources of inflation in China.Finally,through summarizing the imported inflationempirical results,and conbined with the theory analysis and phenomenon analaysis ofinertial inflation, from two aspects to offer the feasibility of policy proposals for China to prevent and control inflation problem...