The Spillover Effect Of Quantitative Easing Monetary Policy To China’s Inflation

In2007United States occurred financial crisis, during the crisis lots of financialinstitution went bankruptcy because of lack of liquidity. The condition of theeconomics in the country keeps down for a long time. Therefore United Statesdecided to take Quantitative Easing Monetary Police to resolve the situation. With thedevelopment of the international economic, this can influence other countries. Thereis much research about this topic, one side is emphasis the influence to Unites States,another side is emphasis to other countries.The article here clarifies how the quantitative easing monetary police influenceChina’s inflation. The first chapter talks about the background of quantitative easingmonetary police and inflation. And then detail to the United States’ monetary policeand China’s inflation phenomenon. The third chapter is the core part in this article. Itinfluences China’s inflation via three approaches, such as the pressure of RMBappreciation, the scale of hot money inflowing into China, CRB index. And alsocheck the influence level of the three variables by econometrics method. Trough theinvestigation, we can find that among the three variables, the pressure of RMBappreciation is the top factor to China’s inflation. And next will be the scale of hotmoney and CRB index. According to the research, we can define some resolution toChina’s inflation situation.