The Causes Of Inflation And Empirical Analysis In China

Whatever the nature of the country, capitalism or socialism; Whatever the development degree of the country, which is in advanced stage or in the development stage, every Country is troubled by inflation problem in varying degrees. Controlling inflation has become a major concern for governments and economists around the world. Every country regards inflation controlling as an important target of the long-term task of economic work and the macro-control policy. International economic organizations, experts and scholars, who study the theory of inflation in practice and guide all the world governments practice.They have obtained fruitful results for reference of summarize the available lessons to be learned.As the world’s largest developing country, China also has repeatedly inflation during the market system transition process. If there is not effectively measure for controlling inflation, the reform and opening up30years of hard-won results accumulated will be seriously affected. Suppose national wealth shrinking, the pressures of residents, businesses, and social aspect shall be increased. On the road of continuance to deepen the reform of the economic system and building a moderately prosperous society, inflation is still a problem which cannot be avoided.The first chapter will introduces the background and significance of the topics, and summarize domestic and foreign research results, determine the research methods. The second chapter will expounds inflation definition, classification, measurement and causes, which focus on currency demands, cost structure, consumers expected etc. to describe the affect factors of inflation, and deepen comprehensive understanding of inflation. As the different period and different economic environment in all countries, the causes of inflation are not same.The third chapter will reviews the past inflation of our country after reform and opening-up, then describes our country performance of inflation in the years of2010-2012.The fourth chapter combined with data of35years in China, empirical analyses from angles of GDP growth, the growth rate of the money supply, urban disposable income growth, worker average wage growth rate and exchange rate, considers that the economic growth, the increase in money supply, increased demand, cost increase and international inputs affect our inflation. And the increase in the money supply, the increase in demand and the increase in cost are the main reasons of the impact of inflation. In addition, the depreciation of the dollar, international commodity prices, the imported foreign direct investment and other factors also affect inflation by varying degrees. Finally, for the current inflation in China, put forward the corresponding countermeasures in terms of monetary policy, fiscal policy, supply demand, restructuring, foreign exchange rates, consumer expectations.