Who influenced inflation persistence in China? A comparative analysis of the standard CIA model and CIA model with endogenous money
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Who influenced inflation persistence in China? A comparative analysis of the standard CIA model and CIA model with endogenous money | |
| Creator | Ying, Liao Hu, Ridong | |
| Description | In this paper, we examine the influencing factors of inflation persistence in Chinas economy using the DSGE approach. Two monetary DSGE models are estimated, namely, a standard CIA model and a CIA model with a Taylor rule. This article uses the Bayesian method to estimate the model, and the estimated and inferred results are credible due to the Markov chain reaching convergence. The results show that the augmented model outperforms the standard CIA model in terms of capturing inflation persistence. Further studies show that inflation persistence mainly comes from the persistence of the money supply, while money supply uncertainty, the reaction coefficient of monetary growth to productivity, productivity persistence and productivity uncertainty have a smaller impact on inflation persistence. Changes of monetary policy have little effect on inflation persistence. | |
| Publisher | AOSIS Publishing | |
| Date | 2013-12-07 | |
| Identifier | 10.4102/sajems.v16i5.667 | |
| Source | South African Journal of Economic and Management Sciences; Vol 16, No 5 (2013); 16-22 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/667/280
|
|
ADVERTISEMENT
