This paper examines the 1994 inflation in China, which occurred at a time when the government was vigorously conducting macroeconomic contraction. The event deserves more attention for both academic and policy research reasons. The paper shows that the inflation was led by food price increases,...

Based on the institutional arrangements and enterprise behavior in centrally planned economies (CPEs), we argued that the disequilibrium state in the goods market in CPEs can be characterized by an asymmetric “min” condition. The condition provides new directions in disequilibrium modeling...