The System Analysis And Evidence Of Regional Economic Growth And Inflation Correlation

Inflation is measured in the current macro-economic whether can be healthy, stable operation of the index. The relationship of Economic growth and Inflation,which is Chinese scholars pay close attention to one of the important economic problems. Now, China’s economic development is to go a new stage of development. At the same time, The market price caused problem form bright contrast with it. China’s macro-economic run a very significant characteristic is that the fast growth of the economy and high investment are coexitence. In the strong market demand and speeding up the development of the policy lead,economic into the high-speed development of the fast lane rapidly. Although commodity market present a flourishing, but increasing the price level so that the general enterprises and consumers are feeling is not easy to accept.The macro economy has been an expansionary policy, the government in order to pursue the economic growth, driven currency investment to keep the high-speed economic growth levels. China’s economic stock is high harden degree, in the benefit of bad contribution, to maintain growth speed is equivalent to maintain a high level of incremental injection, and stock harden can’t create relatively loose budget environment, cause financial can only to economic way will the injection effect on to financial, which caused the social total demand expansion and inflation.This text applied Time Series Model to build model system, which is used to analysis the regional economic growth and inflation, and NeiMengGu autonomous region as the research object, to this model system for empirical analysis. The empirical result shows that NeiMengGu autonomous region economy growth and inflation has one-way causality. Namely:Moderate inflation in favour of economic growth. But this kind of promoting effect is limited, excessive inflation will stifle economic growth. If the prices of agricultural products, industrial products prices were rising, and the broadest measure of money supply increased, so will intensify inflation.