This paper examines the relationship among money, housing, and consumer price inflation in China since 1998. We use a standard multivariate dynamic model and show that when goods prices are sticky, monetary growth is initially transmitted to the real economy via changes in house prices; the...

Inflation in China has been remarkably stable during the last decade, a dramatic shift from the pattern seen in the prior two decades, and so questions arise as to whether inflation dynamics has also changed, and if so, what has caused the change and what are the policy implications? This paper...