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

Pandey, Sheo Nandan; Kusum, Hem
January 2011
USI Journal;Jan-Mar2011, Vol. 141 Issue 583, p69
Academic Journal
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.


Related Articles

  • China: Options Running Out For Monetary Authorities.  // Emerging Markets Monitor;11/26/2007, Vol. 13 Issue 32, p5 

    The article reports on the economic performance of China. It is expected that the People's Bank of China (PBoC) will increase its benchmark interest rates by 27 bps in light with high inflation. Additional increase in reserve requirements is also expected aimed at addressing the problem of...

  • Tight credit to continue in China.  // Asian Business Review;Oct95, p58 

    Reports that the central bank of China, People's Bank of China, will continue its policy of tight credit in an effort to fight rampant inflation.

  • Strategist: There's Still One Big Market Disequilibrium That Hasn't Been Resolved. Kawa, Luke // Financial-planning.com;8/26/2015, p3 

    The article reports on the announcement of the central bank People's Bank of China to lower the reserve requirement ratio and cut two of its policy rates in response to the deterioration in domestic liquidity conditions and slumping stock market in China in 2015.

  • Rising worries.  // China Economic Review (13506390);Feb2010, Vol. 21 Issue 2, p14 

    The article focuses on the argument on whether inflation should be a concern for China in 2010. It states that the argument involves economists who state that the liquidity caused by the inflationary monetary policy should be checked through monetary tightening. Furthermore, economist Lu Ting...

  • China.  // China Country Monitor;Aug2011, p1 

    The article provides an overview of the economic condition in China in relation to its domestic assumptions, inflation and economic policy from 2008-2016. It notes that the People's Bank of China (PBoC) will continue to adopt a gradual and measured approach to tighten its monetary policy. It...

  • BMI Research: Asia Monitor: China & North East Asia Monitor: Liquidity Management Takes Centre Stage.  // Asia Monitor: China & North East Asia Monitor;Jul2008, Vol. 15 Issue 7, p3 

    The article reports on the monetary policy problems faced by the Chinese authorities as of 2008. The problems reportedly emerged after the People's Bank of China (PBoC) increased the reserve requirement ratio (RRR) for banks in the country. The article describes the rise in the reserves as the...

  • China: A Brief Pause For The Yuan.  // Emerging Markets Monitor;12/18/2006, Vol. 12 Issue 35, p12 

    The article looks at the performance of the Chinese yuan in December 2006. After a warning from People's Bank of China (PBoC) about exchange rate, the yuan has run into resistance at CNY7.8200/US$. PBoC research department head Tang Xu commented that the authorities do not consider the widening...

  • China.  // BOFIT Weekly;2/21/2014, Issue 8, p2 

    The article provides information on the economic trends and policy in China as of February 21, 2014. The People's Bank of China drains liquidity to slow credit growth, selling a total of $18 billion in 14-day forward repurchase contracts (repos)to absorb excess yuan liquidity in the financial...

  • BMI Research: Emerging Markets Monitor: China: More Disinflation To Trigger Rate Cuts In 2012.  // Emerging Markets Monitor;1/9/2012, Vol. 17 Issue 38, p7 

    The article presents an assessment of China's economy. All measures of Chinese inflation are expected to recede in 2012, continuing the trend exhibited in the second half of 2011. The People's Bank of China will cut interest rates twice, most likely in first half of 2012. Consumer price index is...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics