The suggestion was to undertake a literature review of work done on the relationship between inflation and unemployment in China. In particular, what work is there on estimating the Phillips Curve? What modelling strategies have been used? What amendments, if any, have been made to fit the analysis to the circumstances of China? For the next meeting, it was suggested that Liang summarises the approaches taken in the literature and presents a clear proposal for his own research (refine topic and research question, identify range of literature to be reviewed, suggest possible model to answer research question, present suggested empirical framework – e.g. regression model).
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