Impact of China’s Economic Policy Uncertainty on Inflation Rate

Although a decrease in the rate of Chinese inflation happens, it will still be higher than was before global financial crisis. The international economy continue to deteriorate 2022 due geopolitical tensions and slowdown economic development experience small recession 2023. Studies show that EPU (economic policy uncertainty) index strongly explains large changes equity markets like S&P 500 has an inverse relationship with real macroeconomic variables employment growth. might impacted. Research on between uncertainty is scant. In effort assist government agencies making decisions, this study, which based VAR model, examines inflation. We find impact rate, but can increase index.