China’s consumer price index — the main gauge of inflation — hit a 28-month high in November at 5.1%. Experts say the increase is actually much higher.
January 17th, 2011.
Written by John Sanchez
China’s leaders are acutely aware of the threat inflation poses to social stability. The deadly 1989 protest in Beijing’s Tiananmen Square was held against a backdrop of soaring prices and economic discontent. Forty years earlier, the Communists defeated a Nationalist government crippled by hyperinflation.
Them keeping the chinese dollar (the Yuan) matched to the dollar and us keeping the dollar (the us dollar) down has somehow translated to INFLATION for them but not for us. neat trick. because of that inflation, they’re losing the resolve to keep the yuan down. what were they trying to do? how did we keep ours down but no inflation? (maybe we needed a recession to keep inflation down… maybe we saw the recession, know it would keep prices down and pushed the US dollar to the bottom of the pool since we know that with a recession it would be OK on prices… maybe we delay the recovery (those recovery policies sure are slow in coming) because we had work to do, and now china is feeling it…
Hello Piggybankbloggers: I would like to introduce myself. My name is John Sanchez and I am an economist. Please, hold your applause. I know that ‘Economist’ is just a marketing term that often means “listen to my opinion”.
The value of my formal economics education (“Go Slugs!”) is perhaps degraded by the vast numbers of other economists out there that speak out loud about current events.
I concentrate on the future. How do we deal with where were going? Notice I didn’t say “How do we get where we want to be?”… That’s because we all are headed wherever we’re going based on the ‘currents’ of the economy. That’s what I mean when I talk about ‘current’ events.
To understand the currents, let’s take a step back and see where we were before and how we got here.
Ask Piggybankblog Economist a question: firstname.lastname@example.org