An Empirical Study on the Influencing Factors and Countermeasures of Inflation in China

Abstract

Since the outbreak of the financial crisis in 2008, China’s money supply has been increasing in the context of serious international monetary crisis, which had caused the problem of domestic inflation and become a threat to China’s economic development. China’s economic structure and development determines that domestic inflation is highly vulnerable to external shocks. At present, the relationship between China and the world is deepening, and economic reform is imperative. This means that the influence of international currency, capital and commodities will have a certain effect on China’s economy and inflation through certain transmission mechanism. This paper mainly analyzes the influencing factors of inflation from comprehensive domestic and external shocks in China by quantitative research, and to reveal its main causes in order to put forward the corresponding policy suggestions and promote the healthy development of the national economy.