Time-varying impact of U.S. financial conditions on China's inflation: a perspective of different types of events

<abstract> <p>In recent years, the frequency adjustment of U.S. monetary policy has a dynamic and global impact on other countries' economy. Based financial conditions index (FCI), paper employs time-varying parameter vector autoregressive model with stochastic volatility (TVP-VAR-SV) spillover respectively to investigate (UFCI) China's inflation (CINF) its mechanisms. Some results are achieved as follows: first, impacts UFCI CINF vary greatly over time both in dimension action duration point. Second, effects directly relate different types major events, they heterogeneous duration, degree, direction well trend range fluctuations. In addition, can work through trade flow market, market plays main conductive role, effect changes time.</p> </abstract>