Skip to main content

Exchange rate reform and its inflationary consequences: an empirical analysis for China

Buy Article:

$55.00 plus tax (Refund Policy)


In examining China's exchange rate policy in the reforming years, the study finds empirical evidence of its long-run inflationary consequences, but the effects appear not to be sizable. In the short run, while changes in the devaluation rate are positively correlated with the increase in the growth rate of inflation, the inflation inertia is also modest. The moderate inflationary cost of devaluations provides some explanation of the smooth transition of exchange rate policy regime in China and the authorities' ability to put more weight on external competitiveness.

Document Type: Research Article


Affiliations: 1: Department of Economics, University of Southampton, SO17 1BJ, UK; Guanghua School of Management, Peking University, China 2: Department of East Asian Studies, Durham University, DH1 3TH, UK

Publication date: 2003-01-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more