TITLE

China's 2011 Dilemma : High Growth Trajectory and Inflationary Spiral

AUTHOR(S)
Pandey, Sheo Nandan; Kusum, Hem
PUB. DATE
January 2011
SOURCE
USI Journal;Jan-Mar2011, Vol. 141 Issue 583, p69
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses China's quest to sport a "goldilocks scenario" featuring relatively strong growth and modest inflation. The intended correctives involves a change in policy where China is expected to put a cap on deficit financing and force a curb on bank lending. It notes how the People's Bank of China (PBoC) announced a 25 basis point hike in one-year lending and deposit rates to put prices and liquidity back to normal. It suggests that 2011 for the Chinese economy will be one of reflations with significant risks to fixed asset investments.
ACCESSION #
61153036

 

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