Please wait a minute...
Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2009, Vol. 4 Issue (4) : 572-587
Research articles |
Is China’s inflation pushed by wages? An empirical research based on excess wages
FAN Zhiyong,
School of Economics, Renmin University of China, Beijing 100872, China;
 Download: PDF(478 KB)  
 Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
Abstract Whether China’s inflation since 2007 is demand-pull or cost-push has become the study focus. Different opinions about the originations of the inflation indicate different policies against further inflation. VAR research based on the import price, money supply, excess wage and inflation rate finds that money supply instead of excess wage has made the most contribution for current inflation since 2000. Further evidence from sectoral data also confirms the conclusion of the VAR research. So there was no “wage-inflation” vicious circle in China during 2000–2007.
Keywords inflation      demand pull      cost push      excess wage      
Issue Date: 05 December 2009
 Cite this article:   
FAN Zhiyong. Is China’s inflation pushed by wages? An empirical research based on excess wages[J]. Front. Econ. China, 2009, 4(4): 572-587.
[1] Liuyan Zhao, Yan Zhao. Purchasing Power Parity and Price Fluctuations in China before July 1937[J]. Front. Econ. China, 2018, 13(3): 458-483.
[2] Yafang Yu. Testing Commitment Models of Monetary Policy in China[J]. Front. Econ. China, 2016, 11(4): 668-693.
[3] Yang Ji,Ran Li,Jingxian Zou. Is the Phillips Curve Valid in China?[J]. Front. Econ. China, 2015, 10(2): 335-364.
[4] Hongmei Zhao, Vincent Hogan. Measuring the NAIRU — A Structural VAR Approach[J]. Front Econ Chin, 2011, 6(1): 76-91.
[5] Jisheng Yang. Expectation, Excess Liquidity and Inflation Dynamics in China[J]. Front Econ Chin, 2010, 5(3): 421-429.
[6] ZHANG Chengsi. Structural instability of China inflation dynamics[J]. Front Econ Chin, 2009, 4(1): 30-45.
[7] BEI Duoguang , ZHU Xiaoli. A new monetary phenomenon: An analysis of the co-existence of the external appreciation and the domestic inflation of RMB[J]. Front. Econ. China, 2008, 3(3): 327-355.
[8] LIU Jinquan , ZHENG Tingguo , SUI Jianli. Dual long memory of inflation and test of the relationship between inflation and inflation uncertainty[J]. Front. Econ. China, 2008, 3(2): 240-254.
[9] NING Guangjie. Wage forming mechanism in the market transitional process of China (1993—2005): Evidence from the provincial panel data[J]. Front. Econ. China, 2008, 3(2): 312-326.
[10] CHEN Yanbin, MA Lili. Study of the welfare cost of infl ation in China[J]. Front. Econ. China, 2007, 2(4): 490-519.
[11] SONG Bo, GAO Bo. Impact of international capital flows on real estate market: The empirical test in China from 1998 to 2006[J]. Front. Econ. China, 2007, 2(4): 520-531.
[12] ZHAO Liuyan, WANG Yiming. Determinates of the decline in the income-velocity of money in China: a new perspective[J]. Front. Econ. China, 2006, 1(2): 256-271.
Full text