TITLE:
A Study on the Relationship between the Independence of the Central Bank and China’s Inflation
AUTHORS:
Yansong Zheng
KEYWORDS:
Independence of Central Bank, Inflation Rate, Time Series Analysis, LS Measurement Method
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.2,
February
28,
2020
ABSTRACT: In recent years, there have
been several serious inflation problems in China. Western theorists believe
that there is a certain relationship between the independence of the central
bank and inflation in China (Chen,
2019). In this
paper, LS measure method is used to measure the independence of the central
bank, and the inflation rate of 1994-2017 in China is calculated. Based on the
collected data, the time series analysis of the independence of the central
bank and the inflation in China is carried out. It holds that the independence of the central bank
is negatively related to inflation, and aims to improve the independence of the
central bank in China and lay the foundation for stabilizing the price level.