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A STUDY ON THE RELATIONSHIP BETWEEN INFLATION AND ECONOMIC GROWTH WITH A VAR MODEL

WANG Shuang-zheng(The Price Monitoring Center of National Development and Reform Commission,Beijing 100837,China)  
Inflation is an important indicator of measuring macroeconomic stability and health.The relationship between inflation and economic growth is one of the major economic issues that draw academic attention.Results from this econometric analysis indicate that there was two-way Granger Causality between China's inflation and economic growth;China's inflation was largely driven by its own fluctuations;the evident increase of upstream products' prices is to bring pressure on China's future inflation;and the rapid growth of its money supply is to affect inflation to a certain degree.
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