We estimate a measure of the repression of the Chinese price level by developing a simple analytical model which derives a 'true' rate of inflation on the basis of the different rates of change of the stock of money in circulation and the nominal value of retail sales. This true rate of...

We construct a two-part model of the Chinese economy. The first part consists of a money supply equation, a real money demand equation, and a savings equation. The second part comprises a set of sectoral equations. The model estimated is then used to generate a dynamic simulation of the paths of...