The Study Of The Applicability Of Inflation Targeting In China

Inflation targeting is the new monetary policy framework which is merging in the world since 1990s of last century, there are already more and more countries have adopted or intend to introduce inflation targeting, inflation targeting have a good performance in terms of stabilizing the economy and control inflation in these countries that adopted it. Now there are more and more scholars began to pay attention to this cutting-edge issue. Since last year, China appeared the trend that rising of the price, the Government have adopted a number of measures to control inflation. Discussion of inflation targeting is now also having some practical significance.This article discusses the feasibility of adopted inflation targeting by China now, drawing practical experience of inflation targeting countries in the world, combined with China's national conditions. This paper introduces the recent international study on the situation of inflation targeting, and describes the theoretical basis of inflation targeting, examines the practice of inflation targeting foreign countries and the advantages and the defects of inflation targeting that has shown. Then combining the elements of inflation targeting and the actual situation of China, conclude that:China can't meet the Conditions of adopting the inflation targeting now, the reform of Chinese monetary policy should be based on inflation targeting. Finally this article put forward some suggestions for reference.