Will China's Inflation Hurt US Markets? Study Says No.

Filed in archive News on February 22, 2008

A study in the journal most recent edition of the journal China & World Economy say that there "no strong empirical evidence that inflation in China has a significant impact on inflation in the US and Japan," according to Huliq.




The reverse is not true. According to the study, "there is evidence that the inflation in the US has had some impact on Chinese inflation." One reason for the difference is that inflation in China has been strongest in areas that impact consumable goods aimed at Chinese citizens - like groceries.

The study's author, Tarhan Feyzioglu, works for the International Monetary Fund.