Research on the International Transmission Mechanism of Deflation

Author: Fan Qilong
Publisher:
Publish Date: 2004-01-01
Features: With the continuous advancement of reform and opening-up, China's level of economic openness has been increasing. It has become increasingly important to conduct a comprehensive and in-depth study of the deflation phenomenon by breaking through the traditional framework of a closed economy. Based on an analysis of the international transmission of deflation, this book systematically examines the channels, methods, processes, and intrinsic mechanisms through which external shocks affect China's deflation. After separately discussing China's balance of payments transmission mechanism and exchange rate transmission mechanism for deflation, the author conducts an empirical analysis of the effectiveness of monetary policy under open economy conditions using annual data on output, prices, and economic openness, as well as some quarterly data, since China's reform and opening-up. The book also proposes corresponding policy recommendations for the formulation and implementation of China's monetary policy.