External Factors Are Only one Element Contributing to Inflation
发布: 2008-9-15 18:25 | 作者: CE | 来源: China Economist
WANG Hongju ( 汪红驹) and ZHANG Xiaojing ( 张晓晶)
The Institute of Economics at Chinese Academy of Social Sciences
Editorial note:With considerable influence exerted on China’s economy, inflation has become a buzzword characterizing China’s economic development in 2008. What has brought on this round of inflation? What role do external shocks play in stoking inflation? This article attempts to answer these questions, and offers relevant policy recommendations.
Introduction
Domestic inflation and the U.S. subprime crisis are the two most important uncertainties facing China’s economic growth in 2008. Inflation, in particular, has presented China with a daunting economic landscape.
The price growth rate surged past 5% in the second half of 2007 and hit an eleven-year high of 6.9% in November. In January 2008, the rate of price hike jumped to 8.7%. In the meantime, some of the world’s major economies face similar price hikes. The factors contributing to domestic inflation are multifold, though “imported inflation” has been the most eyecatching (Fan Gang, 2008).
