Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9547438 | China Economic Review | 2005 | 28 Pages |
Abstract
This article investigates the causes of deflation China has experienced since 1998. The analysis is based on a theoretical model which makes the distinction between tradable and non-tradable goods and on the estimation of a reduced equation of consumer price variations for the period 1986-2002. The empirical results corroborate the theoretical predictions. The main conclusion is that the slowing down of inflation and the fall of prices are chiefly explained by Chinese macroeconomic policy. Moreover and contrary to current opinion we find that deflation is partly due to the deceleration of productivity growth in the tradable sector.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Samuel GUERINEAU, Sylviane GUILLAMONT JEANNENEY,