A Study on the Relationship between the Independence of the Central Bank and China’s Inflation

摘要

In recent years, there havebeen several serious inflation problems in China. Western theorists believethat there is a certain relationship between the independence of the centralbank and inflation in China (Chen,2019). In thispaper, LS measure method is used to measure the independence of the centralbank, and the inflation rate of 1994-2017 in China is calculated. Based on thecollected data, the time series analysis of the independence of the centralbank and the inflation in China is carried out. It holds that the independence of the central bankis negatively related to inflation, and aims to improve the independence of thecentral bank in China and lay the foundation for stabilizing the price level.