Sunday, April 20, 2008

Unit 3: Excessive growth and inflation in China

This Guardian article shows the difficulty in simultaneously meeting different macroeconomic objectives

http://www.guardian.co.uk/business/2008/apr/17/economics.china

a) What do you think is the cause of the inflation?
b) Which sort of inflation is China therefore suffering?
c) What actions could the Chinese govt take to reduce the inflation?
d) What problems would this cause in China?

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