The empirical analysis on the effectiveness of Chinese monetary policy to contain inflation

摘要

Whether the Chinese monetary policy can contain the inflation effectively, domestic theorists did not have a definitive conclusion until now. This article uses Akaike info criterion ADF examination, Johansen cointegration test, Granger cause and outcome test to analyze the effectiveness of China monetary policy in restraining the inflation in the period July 2005 to July 2008. The results show that inflation inertial RMB appreciation pressure offset china monetary policy effectiveness.