Macroeconomic Cycles in China
October 1, 1997
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary
This paper investigates the macroeconomic cycles China has experienced since the onset of reform in the late 1970s. It finds that the recurrent inflationary episodes that characterize the cycles are associated primarily with surges in the main components of aggregate demand. The most recent cycle stands out in achieving for the first time a reduction in inflation without a major slowdown in growth. The soft landing was facilitated by a number of factors, including increases in capacity as a result of the surge in investment spending early on in the cycle.
Subject: Credit, Inflation, Output gap, Potential output, Price adjustments, Price controls, Prices, Production
Keywords: administered price, Asia and Pacific, business cycles, excess demand, inflation, liberalization measure, Output gap, People’s Republic of China, Potential output, Price adjustments, Price controls, price liberalization, price reform, retail price, RPI inflation, WP
Pages:
35
Volume:
1997
DOI:
Issue:
135
Series:
Working Paper No. 1997/135
Stock No:
WPIEA1351997
ISBN:
9781451855678
ISSN:
1018-5941
