Economic Suicide: China's Cabinet May Impose Temporary Price Controls to Counter Inflation

By Bloomberg News
Nov. 18, 2010

Their inflation rate is so high because the US exports all its inflation to China. They'd be better off depegging their currency from the dollar so their people can afford to buy their own products. Instituting price controls and turning everyone into criminals is not going to fix anything. - ChrisChina may impose temporary price controls to counter the fastest inflation in two years, the cabinet said.

Price caps on “important daily necessities” and production materials will be used if necessary, the State Council said on its website today after a meeting chaired by Premier Wen Jiabao.

China’s accelerating inflation has sent stocks and commodities sliding on speculation that efforts to curb prices will cool the world’s fastest-growing major economy. The State Council’s announcement came after the Shanghai Composite Index today extended to 10 percent its decline from an almost seven-month high on Nov. 8.

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