The Brief Analysis of the Feasibility of the Inflation Targeting System in China

摘要

There has existed a widespread view in China that the inflation targeting system is only a strict rule of monetary policy pursuing the stability of price but the economic development of China is focused on the economic growth and so, it is inappropriate for China to adopt the system. From above we can know it is a gradual process that countries with the inflation targeting system adjust themselves to the goal of inflation. And they carry out flexible the inflation targeting system rather than strict the inflation targeting system which in turn is not only staggered in establishing the inflation target, but also allows a long time reaching the inflation target. This kind of method is gentle and has little influence on the output. Therefore, the view that the inflation targeting system neglects the output is biased.