Research On Inflationary Inertia Of Viscous Information

Along with rapid economic growth in China, the price level continued to rise in recent years, the inflation pressure is more and more big. And when inflation in the economy by the impact of factors such as macroeconomic policies to change this, will not immediately change, but changes slowly over a period of time, eventually reach equilibrium, and defines the phenomenon as the inertia of inflation.This paper combines the research of previous scholars, this paper introduces and analyzes the Sticky Information theory, and then deduces viscous information Phillips Curve with mathematical method. And the Sticky Information Phillips Curve mathematical analysis.This paper use the VAR method selected the CPI as explained variable demonstrates that China have inflation inertia. Then use the generalized matrix method and related data to estimate the Chinese Sticky Information Phillips Curve.Through the inspection to ensure the rationality of the measuring results, and give some policy Suggestions according to the measurement results and economic theory. These suggestions include the implementation of inflation targeting, the independence of the central bank, the expectation of inflation, the transparency of fiscal policy and monetary policy.