The Stress Of Imported Inflation On China And Our Countermeasures

In the background of economic globalization and financial integration imported inflation directly contributed to rise the overall price level in our country continuously. Inflation is an extremely complex economic phenomena, and imported inflation is just one kind. The key of inflation control is a careful analysis of inflation pathways, based on which to build barriers against the impact of inflation, coping with the impact of inflation on domestic economy. It will help to stabilize the overall price level of China, and will promote our economy develop healthily, stably and sustainably.Currently, the global linkage inflation problem gradually increased, this phenomenon is accompanied by the economic globalization and financial integration. In the background of economic globalization and financial integration, the international pathways of imported inflation has increased more and more, resulting in global imported inflation, especially influencing developing economies seriously. Resource and commodity prices rising in the whole world directly result in the price of downstream industries such as manufactured goods and service rising, and the formation of cost-push inflationary pressure worldwide. The U.S. financial crisis in 2008 has slowed down the global economy and caused imported inflation climbing among developed economies and developing economies. Since the 2008 financial crisis, the U.S. implementation of successive rounds of quantitative easing monetary policy has caused more inflation pressure on the whole world, directly let all nations face imported inflation. At the same time, our dependence on foreign trade gradually increased, imported inflation through foreign trade pathway and international capital market pathway lead serious bad effects on our economy. In recent years, although the economic development of China has achieved rapid growth, due to the increase of foreign exchange, our increasing dependence on foreign trade, imported inflation has brought a lot of bad effects on Chinese daily life. Therefore, in order to cope with the impact of inflation on China’s economy more timely and effectively and to prevent obstruction of imported inflation against the healthy development of China’s economy, we should have a clear understanding of the great pressure of imported inflation on China economy.This article firstly analyze the mechanism, the countermeasures and the risky factors of imported inflation in developing economies, then have a deep study about the domestic and international causes of China’s imported inflation, international pathways of China’s imported inflation and bad influence of imported inflation on China. Finally, this article combines the characteristics of China’s socialist market economy with the features of China’s imported inflation, to give the actual advice against the effect of imported inflation on the healthy development of China’s economy and to maintain a healthy, stable and sustainable development of China’s economy.