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Impact of the Financial Tsunami on the Convergence of the Consumer Price Index in China

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  • Shu-kam Lee
  • Kai-yin Woo
  • Raymond W. M. Yeung

Abstract

This article adopts a time-varying parameter model to investigate whether the economic downturn has affected convergence of the consumer price index. The dynamic patterns of the intranational purchasing-power parity coefficients in mainland China before and after the financial tsunami are found to differ, indicating that the convergence has indeed been adversely affected by the downturn.

Suggested Citation

  • Shu-kam Lee & Kai-yin Woo & Raymond W. M. Yeung, 2011. "Impact of the Financial Tsunami on the Convergence of the Consumer Price Index in China," Chinese Economy, Taylor & Francis Journals, vol. 44(3), pages 71-83, May.
    • Handle: RePEc:mes:chinec:v:44:y:2011:i:3:p:71-83
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