Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316630 
Year of Publication: 
2024
Citation: 
[Journal:] East Asian Economic Review (EAER) [ISSN:] 2508-1667 [Volume:] 28 [Issue:] 2 [Year:] 2024 [Pages:] 175-219
Publisher: 
Korea Institute for International Economic Policy (KIEP), Sejong-si
Abstract: 
This study investigates the impact of inflation rate fluctuations on economic growth in China, with a particular focus on potential non-linear characteristics. The global economic impact of the COVID-19 pandemic notably heightens the study's relevance. The research that the unidirectional causal relationship from inflation to economic growth in China first strengthens and then weakens over time. Furthermore, there is an inflation rate threshold effect on economic growth, identified at 2%. Below this threshold, inflation positively influences economic growth, whereas above it, the impact turns negative. This finding underscores the importance of balancing economic growth with inflation control in the formulation of monetary policy.
Subjects: 
Inflation
Economic Growth
Threshold Effect
VAR
Monetary Policy
JEL: 
E31
E32
E50
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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