Redistribution Of Wealth Through Unanticipated Changes In The Price Level

In this paper, with analyzing the situation in China by the research methods of Alchian and Kessel, domestic had no similar studies about the fact whether the companies had redistribution of wealth in the price level. Unexpected price changes will affect the market interest rates, and the market rate of interest can not accurately reflect the expected price changes. It will cause the redistribution of wealth between the creditor and the debtor’s phenomenon. From the beginning of Keynes and Fisher’s theory, economists have done a lot of empirical research in this area. The last century 60’s, the American economist Alchian and Kessel used listing Corporation data on the NYSE, the first micro firm level analysis of wealth transfer, attracted the attention of the people. Alchian used detailed information on the financial statements of thousands of companies. They analyzed through statistical analysis of regression, and proved that when inflation occurs, the company is faster than in creditor debt comprehensive stock price of the company’s growth rate in the opposite side, deflation occurs when the creditor stock price growth rate faster than debt. Therefore, this article should be the first attempt to study the problem of micro-level wealth transfer carried out. In the last, empirical result show that the similar to NYSE company’s wealth transfer phenomena is of the existence.