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Is there Causal Relationship between Money Supply Growth and Inflation in China? Evidence from Quantity Theory of Money

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  • Chi-Wei Su
  • Jiao-Jiao Fan
  • Hsu-Ling Chang
  • Xiao-Lin Li

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  • Chi-Wei Su & Jiao-Jiao Fan & Hsu-Ling Chang & Xiao-Lin Li, 2016. "Is there Causal Relationship between Money Supply Growth and Inflation in China? Evidence from Quantity Theory of Money," Review of Development Economics, Wiley Blackwell, vol. 20(3), pages 702-719, August.
    • Handle: RePEc:bla:rdevec:v:20:y:2016:i:3:p:702-719
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    References listed on IDEAS

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    4. Milton Friedman, 1971. "A Theoretical Framework for Monetary Analysis," NBER Books, National Bureau of Economic Research, Inc, number frie71-1.
    5. Shenglong Liu & Guifu Chen & Shigeyuki Hamori, 2014. "Empirical research on monetary policy, asset prices and inflation: an analysis based on provincial panel data in China," Applied Economics, Taylor & Francis Journals, vol. 46(34), pages 4190-4204, December.
    6. Chengsi Zhang, 2011. "Why is Inflation in China a Monetary Phenomenon?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(3), pages 1-17, May.
    7. Pesaran, M. Hashem & Timmermann, Allan, 2005. "Small sample properties of forecasts from autoregressive models under structural breaks," Journal of Econometrics, Elsevier, vol. 129(1-2), pages 183-217.
    8. Jiang, Chun & Chang, Tsangyao & Li, Xiao-Lin, 2015. "Money growth and inflation in China: New evidence from a wavelet analysis," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 249-261.
    9. Umoru David & Tizhe N. Ann, 2014. "Causality Dynamics between Money Supply and Inflation in Nigeria: A Toda-Yamamoto Test and Error Correction Analysis," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 3(2), pages 63-75.
    10. Granger, Clive W J, 1996. "Can We Improve the Perceived Quality of Economic Forecasts?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(5), pages 455-473, Sept.-Oct.
    11. Hasan, Mohammad S., 1999. "Monetary Growth and Inflation in China: A Reexamination," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 669-685, December.
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    25. Achim Zeileis & Friedrich Leisch & Christian Kleiber & Kurt Hornik, 2005. "Monitoring structural change in dynamic econometric models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 99-121, January.
    26. Peebles, Gavin, 1992. "Why the Quantity Theory of Money Is Not Applicable to China, Together with a Tested Theory That Is," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 16(1), pages 23-42, March.
    27. Mehmet Balcilar & Zeynel Ozdemir, 2013. "The export-output growth nexus in Japan: a bootstrap rolling window approach," Empirical Economics, Springer, vol. 44(2), pages 639-660, April.
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    Cited by:

    1. Nasir, Muhammad Ali & Balsalobre-Lorente, Daniel & Huynh, Toan Luu Duc, 2020. "Anchoring inflation expectations in the face of oil shocks & in the proximity of ZLB: A tale of two targeters," Energy Economics, Elsevier, vol. 86(C).
    2. Turgut TURSOY & Muhammad MAR’I, 2020. "Lead-Lag And Relationship Between Money Growth And Inflation In Turkey: New Evidence From A Wavelet Analysis," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 11(1), pages 47-57.
    3. Shahzad, Umer & Orsi, Bianca & Sharma, Gagan Deep, 2024. "Managing inflation expectations and the efficiency of monetary policy responses to energy crises," Energy Economics, Elsevier, vol. 133(C).
    4. Liu, Zhenhua & Chen, Shumin & Zhong, Hongyu & Ding, Zhihua, 2024. "Coal price shocks, investor sentiment, and stock market returns," Energy Economics, Elsevier, vol. 135(C).
    5. Cheng-Wen Lee & Hao-Yuan Yu, 2021. "Money Supply, Inflation and Economic Growth in China: An ARDL Bounds Testing Approach," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(1), pages 1-5.
    6. Nasir, Muhammad Ali & Duc Huynh, Toan Luu & Vo, Xuan Vinh, 2020. "Exchange rate pass-through & management of inflation expectations in a small open inflation targeting economy," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 178-188.

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