This study “Does China Have Inflationary Effects on the USA and Japan?” uses several econometric approaches to assess the link between China, Japan and the US, and evaluates whether China can export inflation or deflation to the US or Japan.
Lead author, Mr. Tarhan Feyzioglu, Resident Representative – China, International Monetary Fund says, “With Japan and the US being two of China’s largest trading partners, transmission of inflationary pressures between parties is not unusual. However, our empirical analysis suggests that Chinese prices have a fairly small and temporary impact on U.S. and Japanese prices. This is partly because imports from China still make up a small portion of all goods bought in the US and Japan. China would need to dominate the international trade on a larger scale before any noticeable effects on inflation are felt.”
The study also suggests that because recent Chinese price pressures have been limited to food prices and not manufactured goods, the effects are likely to remain contained in China. Nevertheless, the study shows that global commodity prices are important for all these countries, and thus the recent surge in these prices would create upward pressure on inflation in all these countries.
______________________________________________________________
This paper is published in Vol. 16, Issue 1 (Pg 1-16), Jan-Feb 2008, China & World Economy.
The article abstract can be viewed online at http://www.blackwell-synergy.com/doi/abs/10.1111/j.1749-124X.2008.00096.x
Media wishing to receive a PDF or schedule media interviews with the authors should contact Alina Boey, PR & Communications Manager Asia at aboey@wiley.com.sg or phone 65-96565580.
About China & World Economy
China & World Economy was launched in 1993 by the Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). Originally self-published, the journal begins its official publishing partnership with Blackwell Publishing in 2006. Published six times a year, this journal combines original academic research works with policy review articles - many of its authors are distinguished Chinese economists from both academic and governmental circles. As the only English language journal in China devoted to the topic of Chinese economics, readers can expect objective, analytical and up-to-date quality content. With distinguished contributors such as economists from both the government and academic circles, the journal will provide an informed and balanced window on China, and will undoubtedly become essential reading for all those interested in China's development.
About Wiley-Blackwell
Wiley-Blackwell was formed in February 2007 as a result of the acquisition of Blackwell Publishing Ltd. by John Wiley & Sons, Inc., and its merger with Wiley’s Scientific, Technical, and Medical business. Together, the companies have created a global publishing business with deep strength in every major academic and professional field. Wiley-Blackwell publishes approximately 1,400 scholarly peer-reviewed journals and an extensive collection of books with global appeal. For more information on Wiley-Blackwell, please visit www.blackwellpublishing.com or http://interscience.wiley.com.
About Wiley
Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for 200 years, helping people around the world meet their needs and fulfill their aspirations. Since 1901, Wiley and its acquired companies have published the works of more than 350 Nobel laureates in all categories: Literature, Economics, Physiology/Medicine, Chemistry and Peace.
Our core businesses include scientific, technical, medical and scholarly journals, encyclopedias, books, and online products and services; professional/trade publishes books, subscription products, training materials, and online applications and websites; and educational materials for undergraduate and graduate students and lifelong learners. Wiley's global headquarters are located in Hoboken, New Jersey, with operations in the U.S., Europe, Asia, Canada, and Australia. The Company’s Web site can be accessed at http://www.wiley.com. The Company is listed on the New York Stock Exchange under the symbols JWa and JWb.
###
