| Author/Presenter |
Xue Zhao (Carleton University) |
| Title |
Does Inflation in China Affect Canada? |
| Abstract |
Theoretical literature provides mixed conclusions regarding the magnitude of international transmission of inflation. This paper investigates the link between inflation rates between China and Canada. A number of econometric techniques, including Johansen MLE, dynamic OLS and VAR, have been applied. It finds empirical evidence for CPI inflation in China having disinflationary effects on price changes in Canada at aggregate level, but not vice versa. Also in some sectors such as manufacture goods, this disinflationary effect appears to be stronger. |
|