Politique économique locale et inflation en Chine

Important inflation differences have been existing since 1978 across the Chinese provinces. This paper intends to connect this observation with the literature that emphasises the role of local governments in the process of excess credit supply and inflation in China. A model presents provincial credit growth and inflation as a positive function of the macroeconomic autonomy enjoyed by local authorities. The proposition is supported by a panel-data analysis applied to the Chinese provinces.