Research About Imported Inflation Pass-Through Mechanism

Imported inflation is from the other countries appear currencydevaluation, rising prices and through the international trade to domestic formconduction, cause a domestic price level rise, and cause devaluation of aneconomic phenomenon. It usually occurs in the open country of the economicsystem. Since the reform and open policy, our country has seen a few timesmore serious inflation, the main characteristics of the formation of domesticcirculation is mainly because of too much money issued or goods caused byinadequate supply of rising prices have, in recent years, particularly the U.S.subprime mortgage crisis began, along with the world economic recovery andChina’s economic conditions improve case, with international commodity pricesrise considerably, which transmitted to domestic, result in the commodity highprices.Import is the basic conditions of inflation is a country is the open economysystem, since the reform and open policy, our country and their integration intothe world economy increasing strength, at present, China’s currency market,capital market, and service market and technology market and internationalmarket of correlation between more and more high, therefore, internationalcommodity price change must be transmitted to the domestic. In recent years,our country prices rising pressure from major cost advancement andinternational input the superposition of influence. From the international marketinfluence to our domestic main factors have: international food prices rapidly;The international price increase; The United States implement monetary easingbring pressure; By natural disasters for basic goods and economic recovery ofexpanding demand caused the global prices rising.With the economic globalization and financial integration propulsion, inputtype of promoting our country’s price inflation to high affect more and moredirect. Inflation is a complex economic phenomena, input type inflation is oneof them, the key management inflation in the transmission channel based onclear of constructing prevent inflation input influence of the firewall, weakeningthe influence of internal economy. Only in this way can we targeted against typeinput to build inflation on the negative influence of economy, the stability forthe price level in our country, the economy stays, nice and fast development.