An Empirical Study on International Transmission Path of Inflation in China

In the background of economic globalization and integration, a country's economy will move from closing to opening. While sharing the benefits of this opening economy, it will also bear the negative effects, including "international transmission of inflation" which deserves the widespread concern. With the in-depth development of China's economic reform, China is gradually transferring from a closed economy to an open one. According to the cause of inflation from 2003 to 2007, it cannot be fully attributed to domestic factors. The new domestic inflation from 2010 to 2011 is closely related to the input factors and until the current macroeconomic inflation expectations are obvious. This paper aims to make an empirical study on the data from 2003 to 2012, and to analyze how smooth the international transmission paths of inflation in China.