China's impact on global inflation

Research from the Bank of Canada examines the effect of China on the inflation rate in other countries.

Using quarterly data for 25 OECD countries over the 1984 to 2006 period, the authors find that while China's negative effect on global inflation has been quantitatively modest, it has increased in absolute terms since the early 2000s.

They also find that the main transmission channel is the impact of increasing competitive pressure from Chinese goods and wages.

Click here to read the paper.

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