Macroeconomic Cycles in China
IMF Working Papers, October 1, 1997
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- Macroeconomic Cycles in China
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Bibliographic details
- Authors: S. E Oppers
- Published: October 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451855678.001
Summary and scope
- Paper investigates the macroeconomic cycles China has experienced since the onset of reform in the late 1970s.
- Recurrent inflationary episodes that characterize the cycles are associated primarily with surges in the main components of aggregate demand.
- The most recent cycle (relative to the paper) achieved 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.
Key findings
- Recurrent inflationary episodes in China are linked primarily to surges in the main components of aggregate demand.
- Successful reduction in inflation without a major growth slowdown occurred in the most recent cycle examined.
- Increased capacity—stemming from an early-cycle surge in investment spending—helped facilitate the soft landing.
Subject areas and keywords
- 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
Content in this bundle
- Macroecconomic Cycles in China -WP/97/135