An Empirical Study On The Impact Of U.S.Monetary Policy On China's Inflation

A global financial crisis erupted in 2008,in the context of economic integration,as the largest economy in the world,the U.S.monetary policy has had a significant spillover effect on other countries.And China,as a representative of emerging economies,is the first to be affected,in terms of prices,the price level has continued to rise,individual level of consumption price indices at all levels of food,residence,traffic and communication,health care and that like were subject to different levels of impact,this price rise has typical input characteristics.In recent years as the international economic situation has changed,the monetary policy implemented by the United States has different effects on the consumer price index at all levels of our country.Therefore,in order to cope with the spillover effects of U.S.monetary policy in the open economy,it is especially important to study that influence of U.S.monetary policy on inflation in China in different period.The article is based on a multi-level consumer price index that analyzes the effect of American monetary policy on inflation in our country,the introduction part explores its international economic background and research significance,reviews research literature on the spillover of U.S.monetary policy and China's multi-level consumer price index,and then puts forward the research thinking of the article.It lays a foundation for subsequent theory and empirical research.Then based on MFD macroeconomic model,analyzes the spillover effects of U.S.monetary policy on China's economy through three channels of exchange rate,interest rate and international commodity price.The paper uses VAR model to empirically study the influence of us monetary policy on China's multi-level consumer price index.By establishing the VAR model,firstly,the stability test of the variables is carried out.Then,based on impulse response and variance decomposition,the influence of U.S.monetary policy on China's food,housing,transportation and communication,health care and other multi-level consumer price index is studied.Studies have shown that:The U.S.monetary policy affects inflation in China,but the extent of the consumer price index at all levels is influenced by us monetary policy is different.The U.S.monetary policy has the largest impact on the consumer price index of China's transportation and communication and health care sectors,the impact on consumer price index of residential residents in China is lower,and the impact on consumer price index is relatively small.