Study On Inflation Targeting In China

As we all know,inflation has universality nature;while at the same time,it also has asignificant impact on the international economy and politics.Inflation is not just aneconomical problem that a country has to face,yet it is a common obstacle chanllenged bymany countries in the world during their development.As a new monetary policyframework,inflation targeting can effectively restrict inflaton to help alleviate the laggedeffects of previous policy actions that triggered out,as well as the occasional shocks anduncertain change that are difficult to estimate.International experience shows that inflationtargeting can effectively reduce public uncertainty about inflatin,and enhance the transparencyof monetary policy and credibility of central bank,so that investment and consumption in theeconomy will show a rational and stable trend through.This paper studies inflation targetingand its relevant content,comparing studies of foreign scholars and domestic scholars toexplain classification and pattern of inflation targeting.The paper starts from China’s currentmonetary policy to conduct analysis on which intermediate target is more suitable forChina,then moves on to the proposal on the advantages of inflation targeting,and discussionon the difficulties of the existing applications.In this paper,we showed our basic study on thedesign of the forward-looking inflation targeting monetary policy framework,the possiblerisks of its exploration and research in the field,and we also proposed prevention solutions tothose possible risks.Further research in this area should be gradually deepending,for some ofthe major issues yet to be resolved early breakthrough.China cannot abandon the existingmonetary policy framework immediately no matter what mode of inflation targeting ischosen.The central banks can collect considerable economic information,establish a stableand effective economic model,and make thoughtful and forward-looking decisions.China hasachieved a certain degree of financial market,and in order to obtain a stable-pricedenvironment,the process of central bank has made tremendous achievement.Theimplementation of inflation targeting in China ensures the healthy development of thenational economy,which could increase international competitiveness while offeringadvantages for the import,export,and employment opportunity.