Author: 468259058

What have contributed to China's present hyperinflation? How much? [Copy link] 中文

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-25 07:16:54 |Display all floors
2. The price of crude oil and other raw materials were rising after more paper money were printed against less growth rate of raw materials production.
The rising prices of raw materials would definitely contribute to the rising prices of end products.

++++++++++++++++++++
How to solve this problem? Could China solve this problem by paper money appreciation?

Use magic tools Report

Post time 2011-4-25 08:37:56 |Display all floors

everywhere

Reminder: Author is prohibited or removed, and content is automatically blocked

Use magic tools Report

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-25 08:57:45 |Display all floors
Originally posted by magnetic1974 at 2011-4-25 08:37
I thinks inflation hit every corner of the world including the US. Now and days  you couldn't buy much stuff with the $100 bill and compare back in lates 80s -90s.

Don't just finger point at Chi ...
..

Just now, I checked what's inflation in Wiki, I'll read the whole explanation later.

Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.

Today, most mainstream economists favor a low, steady rate of inflation. Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduce the risk that a liquidity trap prevents monetary policy from stabilizing the economy.

[ Last edited by 468259058 at 2011-4-25 09:01 AM ]

Use magic tools Report

Rank: 1

Post time 2011-4-25 10:18:28 |Display all floors
Three reasons:
1.  Speculation -- when did China first experience her first sharp rise of prices?  Shortly after the deregulation of the stock market and housing market.  Now, the culture of speculation is growing like cancer.
2.  Export led economy -- production generate products, but many of these products are shipped to foreign market.  Result: income generated pursuing a commodity market smaller than aggregate output.  Secondly, profit retained inthe hands of business owners becomes so huge that they would spend it on anything that available in the market and push prices high.
3.  Certain prices are deliberately kept high by the market leaders like Konsifu (the instant noodle producer -- sorry for my poor Mandarine), logistic costs -- highway and harbour charges, costs on meci-care industries -- they are unreasonably high -- why?, middlemen system sometimes deliberately raises prices through controlling supply, certain professionals think they should receive a salary as high as they can receive in the West (but they forget the living standard in China is much lower, and for the locals, I just don't know what to say .......), .......

Use magic tools Report

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-28 08:12:45 |Display all floors

What tools can China use to control this high inflation?

What tools can China use to control this high inflation?

Use magic tools Report

Rank: 8Rank: 8

Gold Medal

Post time 2011-4-28 11:31:21 |Display all floors
'Hyperinflation' ? - I guess you don't know what you're talking about. Since you're a fan of 'wikipedia' I recommend you to have a look what 'hyperinflation' really means. You can also look at South American economies in the 70s, 80s, 90s etc. In particular Brazil. This may give you an idea what it really means. Another example would be Germany in the late 20s or early 30s of last century. There are pelenty of examples available.

Also look at India which has a far more severe inflation than China.

Anyhow, you have lost all credibility with your choice of vocabulary. But I trust you know this yourself.

Use magic tools Report

Rank: 8Rank: 8

Gold Medal

Post time 2011-4-28 11:52:57 |Display all floors
Originally posted by anonymous.cd at 2011-4-28 12:44


If you got nothing else,
just resort to xinhua and ccp style argumentam ad personam on one single issue,
and based on that reject every single other backed up point the person in question com ...


Afraid to use your "real" handle? Not that I'm surprised but it shows what kind of person you're.

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.