the inflation mechanism and expectations: evidence from china

This book reflects China’s experience, model and theory of successful inflation control. The idea of Stabilization of Expectations emphasized by the Chinese government was primarily proposed in this book with systematic theoretical support. The theory framework initiated in this book has been about 10 years earlier than that of the European and American economists.

The core theory of this work is Sticky Expectation Theory, which breaks through the framework of neoclassical economic theory, denies the fundamental preconditions of neoclassical economic theory to establish a new theoretical framework so as to understand people’s economic behavior and explain the operating mechanism of economy. This book establishes the Chinese version of flexible inflation targeting system, policy transparency, policy rules, and expectation management as the means to prevent and manage inflation and macro-control.

Readers will gain a better understanding of the research achievements of Chinese scholars in the field of inflation management as well as the theory of expectations. Readers can further understand the Chinese approach in tackling inflation issue and other macro-economic control measures proposed by this book.

Laya Li received his PhD of Economics from the Chinese Academy of Social Sciences and he is the winner of Sun Yefang Economic Science Award. From March 1988 to November 1994, he worked at the National Information Center, and from August 1989 to June 1990, he was a visiting scholar at Stanford University in the United States. From March 1992 to March 1993, he was a visiting scholar at the Chinese University of Hong Kong. From January 1997 to March 2010, he worked at the Texas Legislative Budget Board and the Office of the Texas Secretary of State in the United States, engaging in data analysis and processing. From March 2010 to August 2018, he served as a full-time distinguished professor and doctoral supervisor at Huaqiao University, and in 2017, he won the fifth ＂Golden Sheep Award＂ of Financial Books. From September 2018 to August 2023, he served as a full-time distinguished professor and director of the Wenzhou Research Base of the National Laboratory for Financial and Development at Wenzhou Business College, as well as a distinguished professor at Liaocheng University. In 2020, his book ＂Inflation Mechanism and Expectations＂ was nominated for and approved by the the Chinese Academic Translation Project .From September 2023 onwards, he serve as a part-time professor at Hangzhou City University and a part-time professor at Liaocheng University.

Dr Lei Huang is a professor in the Business School of Guangdong University of Foreign Studies, where he used to serve as a Deputy Dean of the School of Management and the Executive Dean of the MBA Education Centre. He also acts as an Executive member of the Guangdong Society of Economics in Guangdong, China. He obtained his BA in English Literature from Huazhong Normal University and his Master degree in Economics from Guangxi University respectively. He was conferred his PhD from the University of Technology Sydney (with EIPRS Scholarship), Australia in the field of Management.

Dr Huang was a Fulbright Scholar-in-Residence in USA and a visiting professor to teach in different programs in Australia, India and Chile. He is also an experienced practitioner in international project contracting management and participated in construction of various international projects for more than 5 years in different countries, where he served as professional interpreter, procurement manager and project manager.

Dr Huang’s research interests lie in International Business Management, Economics and Corporate Sustainability. Focusing upon these fields, his academic papers and works have been published in a wide range of national and international journals and publishers. He acts as a peer reviewer for journals such as Journal of Business Ethics, Journal of Knowledge Management, International Journal of Innovation and sustainable Development.

Proofread by William Hickey.