Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63578
Authors: 
Zhang, Yin
Wan, Guanghua
Year of Publication: 
2004
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2004/56
Abstract: 
The Chinese economy underwent cyclical fluctuations in growth and inflation in the reform period. Contrasting views exist on the role of money in such fluctuations. This paper assesses these views employing structural VEC models based on the exchange equation. It is found that in the long run money accommodates, rather than causes, changes in output and prices. In the short run, price fluctuations are mostly attributable to shocks that have permanent effects on prices and money but not on real output. These shocks also account for a large proportion of fluctuations in money, and strongly influence the movements of output. – money ; output fluctuation ; price fluctuation ; structural VEC model ; China
JEL: 
E32
E49
O53
ISBN: 
929190645X
Document Type: 
Working Paper

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