A Coordination Research between Inflation Control and Economic Growth Assurance
SONG Zhi-xiu, GE Xiang-yu
1.School of Statistics ,Zhongnan University of Economics and Law College, Wuhan 430079, China; 2. Wuhan College Zhongnan University of Economics and Law College ,Wuhan 430079, China
Abstract：
On basis of the VECM, this paper researches the cointegration relationship among interest rate, exchange rate, money supply, economic growth and inflation. They are interrelated. Interest rate, exchange rate and money supply growth affect inflation rate and economic growth affect the inflation rate. Interest rate is not Granger cause for economic growth and Granger causal relationship does not exist between exchange rate, money supply growth and economic growth.. The impact of the five variables on each other has a long lag effect. The target of maintaining growth and controlling inflation should can be achieved by deepening reform, improving the market mechanism and transforming the economic growth.
2012 
