Abstract
Inflation is an important phenomenon in the national economy, and central banks have made it one of their tasks to control inflation. The core research object of this paper is the causes of inflation in China since it entered the 21st century, and the Entropy-weighting Method is used to construct a comprehensive indicator system, including 5 different factors contributing to inflation, then analyze it using a VAR model. The following conclusions are drawn: demand-pull inflation in China is more influential than cost-push inflation, and the expectation factor is an important cause of inflation.
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