Economic Growth, Operating Efficiency and Inflation Tolerance Degree——An Empirical Study Based on China’s Economy since 1978
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Economic Growth, Operating Efficiency and Inflation Tolerance Degree——An Empirical Study Based on China’s Economy since 1978
WU Hai-min1, WANG Jian-jun2
1.School of Economics and Management, WuYi University, Jiangmen 529020, China; 2.School of Business Administration and Management,Henan University of Economics and Law,Zhengzhou 450002, China
Abstract This paper analyzes the non linear relationship between inflation and economic growth as well as operating efficiency, by estimating the current inflation tolerance degree with TAR method and China’s macro economic data since 1978. The empirical results support an appropriate upgrade in China's inflation tolerance degree. In the short term, the maximum tolerance degree of inflation is 4.455% when taking into account the steady growth; however, in the medium or long term, it reduces to 3.741% when striving for change of economic development mode and improvement of economic operating efficiency. Thus, the research results provide a new reference for government to establish the endurable interval of inflation.
TUN Hai-Min,WANG Jian-Jun. Economic Growth, Operating Efficiency and Inflation Tolerance Degree——An Empirical Study Based on China’s Economy since 1978. Economic Survey, 2013, 1(4): 0128.
2013, Vol. 1 
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