Lu Chang Rong


Lu Chang Rong, now has an Associate Research Fellow post at School of International Relations, Sun Yat-sen Univerisy, Guangzhou, China. He received his doctor degree at Waseda University (GSAPS) of Japan. His specializing academic fields include IPE, official financial policy of Japanese government and regional financial cooperation, and he is now concentrating on the research of regional currency internationalization mechanism and its determinants. And now is the member of International Association for Asia Pacific Studies (IAAPS) and Japan Association for Asian Studies (JAAS).

Papers Published in World Economics:

China’s Monetary Policy Functions from the Core Inflation Perspective

Based on the open-economy new Keynesian model, this paper studies the influence of core inflation on the central bank’s monetary policy reaction rules by optimising the multi-target welfare loss functions, and draws three conclusions. Sustainable balance of payments should be considered as a goal rather than a tool for monetary policy. The central bank should focus more on core inflation than normal inflation in its daily operations. An authoritative core inflation sequence should be established as a focal point in the policymaking process. In addition, we emphasise that the central bank should accurately judge the impacts of real exchange rate changes, and adjust how frequently it intervenes in interest rates.

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