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Nonlinear Relation between Inflation and Economic Growth: Evidence from China
Abstract:
By using the quarterly data of CPI and GDP in China from 1992 to 2011, this paper builds a smooth transition regression (STR) model to study the nonlinear relation between inflation and economic growth. The results show that there exist two-way Granger causality relations between inflation and economic growth, and inflation has significant nonlinear impacts to economic growth.
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2215-2218
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February 2012
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© 2012 Trans Tech Publications Ltd. All Rights Reserved
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