Mehrotra, Aaron N.; Peltonen, Tuomas A.; Santos Rivera, … - European Central Bank - 2007
We model provincial inflation in China during the reform period. In particular, we are interested in the ability of the … hybrid New Keynesian Phillips Curve (NKPC) to capture the inflation process at the provincial level. The study highlights … differences in inflation formation and shows that the NKPC provides a reasonable description of the inflation process only for the …