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Purpose
The paper aims to know about energy condition’s impacts on inflation comprehensively.
Design/methodology/approach
This paper constructs China’s energy condition index (ECI) by bringing in three variables (China’s energy price, consumption and production) based on the financial condition index.
Findings
The result of empirical analysis shows that the index can predict China’s inflation well.
Originality/value
China’s ECI can predict China’s inflation well.
© Emerald Group Publishing Limited
2015
Emerald Group Publishing Limited
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