IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v15y1997i3p73-81.html
   My bibliography  Save this article

Structural Inflation And The 1994 ‘Monetary’ Crisis In China

Author

Listed:
  • GENE HSIN CHANG
  • JACK HOU

Abstract

This paper examines the 1994 inflation in China, which occurred at a time when the government was vigorously conducting macroeconomic contraction. The event deserves more attention for both academic and policy research reasons. The paper shows that the inflation was led by food price increases, a step of price reform intended to adjust relative price ratios to the equilibrium level. The nature of the inflation was structural rather than monetary. This kind of structural inflation is common in transitional economies. Indeed, it largely characterizes chronic price increases that have occurred in such countries. A proper monetary policy curbing inflation should take into account the structural factor. Monetary growth should be targeted to the extent that it accommodates structural adjustment but does not cause pure monetary inflation.

Suggested Citation

  • Gene Hsin Chang & Jack Hou, 1997. "Structural Inflation And The 1994 ‘Monetary’ Crisis In China," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 73-81, July.
    • Handle: RePEc:bla:coecpo:v:15:y:1997:i:3:p:73-81
    DOI: 10.1111/j.1465-7287.1997.tb00479.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1997.tb00479.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1997.tb00479.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Naughton, Barry, 1991. "Why Has Economic Reform Led to Inflation?," American Economic Review, American Economic Association, vol. 81(2), pages 207-211, May.
    2. Eliana Cardoso & Shahid Yusuf, 1994. "Red Capitalism: Growth and Inflation in China," Challenge, Taylor & Francis Journals, vol. 37(3), pages 49-56, May.
    3. Chang, Gene Hsin, 1995. "What caused the hyperinflation at the Big Bang: Monetary overhang or structural distortion?," China Economic Review, Elsevier, vol. 6(1), pages 137-147.
    4. Gene Hsin Chang, 1994. "Monetary Overhang: Do Centrally Planned Economies Have Excessive Money Stocks?," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 79-90, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Filippov, Mikhail G, 2002. "Russian Voting and the Initial Economic Shock of Hyperinflation," Public Choice, Springer, vol. 111(1-2), pages 73-104, March.
    2. Kui-Wai Li, 1997. "Money and monetization in China's economic reform," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1139-1146.
    3. Fung, Michael K. Y. & Ho, Wai-Ming & Zhu, Lijing, 2000. "Stagflationary effect of government bond financing in the transforming Chinese economy: a general equilibrium analysis," Journal of Development Economics, Elsevier, vol. 61(1), pages 111-135, February.
    4. Fardmanesh, Mohsen & Tan, Li, 1996. "Wage and Price Control Policies in Socialist Transitional Economies," Center Discussion Papers 28515, Yale University, Economic Growth Center.
    5. Chang, Gene Hsin, 1995. "What caused the hyperinflation at the Big Bang: Monetary overhang or structural distortion?," China Economic Review, Elsevier, vol. 6(1), pages 137-147.
    6. Fardmanesh, Mohsen & Tan, Li, 2003. "Wage and price control policies in transition economies," Journal of Development Economics, Elsevier, vol. 70(1), pages 173-200, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:15:y:1997:i:3:p:73-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.