Economic Growth and Inflation Tolerance:Evidence from Firm Level Data
利用企业面板数据发现，中国通胀率低于2.3%时对投资和增长无显著影响，高于5.0%时显著抑制，转折点在3.8%附近，央行需快速应对。
Since the control line of China's inflation target has often been broken through in recent years.It is reasonable to consider that whether China's inflation target is appropriate,and whether it is necessary to increase China's inflation tolerance.This paper investigates above questions using the panel smooth transition model.The firm level evidence shows that there exists significant nonliear relationship between economic growth and the inflation in China.When the inflation rate is less than about 2.3%,the inflation has no significant influence on firm investment behavior and economic growth at 1%significance level.But when the inflation rate is larger than about 5.0%,the inflation will significantly negatively influence investment and economic growth. The above two regimes transition occurs when the inflation rate is about 3.8%.Further,the transition speed is very high which means that when the inflation rate is near to 3.8%,the central bank should swiftly take action against inflation.