A Study on the Relationship between the Independence of the Central Bank and China’s Inflation

In recent years, there have been several serious inflation problems in China. Western theorists believe that there is a certain relationship between the independence of the central bank and inflation in China (Chen, 2019). In this paper, LS measure method is used to measure the independence of the central bank, and the inflation rate of 1994-2017 in China is calculated. Based on the collected data, the time series analysis of the independence of the central bank and the inflation in China is carried out. It holds that the independence of the central bank is negatively related to inflation, and aims to improve the independence of the central bank in China and lay the foundation for stabilizing the price level.