← "Linklets 1st February" | Return to Main Page | "The Cost of Greasing the Wheels of Trade" → | TrackBack (0)

February 02, 2006

You are on the invidual archive page of China's deflationary crunch. Click Simon World weblog for the main page.
China's deflationary crunch

Jim Jubak looks at the risks of deflation in China thanks to over-investment and an exports driven focus at the expense of domestic consumption.

In other news, China has appointed a new manager of most of its currency reserves.

 posted by Simon on 02.02.06 at 11:59 AM in the China economy category.




Trackbacks:

TrackBack URL for this entry:
http://blog.mu.nu/cgi/trackback.cgi/148869

Send a manual trackback ping to this post.


Comments:

Deflation is likely where things are headed here - though there is a quick fix that authorities could use to mitigate it. If they let utility and energy prices rise to market levels, there would be a guaranteed rise in producer and downstream prices, plus a curbing of overproduction. Of course, there would also massive discontent and rioting taxi drivers.

 posted by: myrick on 02.02.06 at 04:36 PM [permalink]




Post a Comment:

Name:


Email Address:


URL:


Comments:


Remember your info?







Disclaimer
All content, including comments, on this site operates under a Creative Commons Licence. The content except for quotes reflect my personal opinions and not those of my employer, family, co-workers, fellow Sydney Swans supporters or anyone else. The comments section is open but if you write it, you stand by it. I take no responsibility for comments. I may, at my sole discretion, moderate, alter or remove comments. I reserve the right to unashamedly change the rules as I go along. All emails are publishable unless otherwise marked. If you don't like it, use the little x in the top right of your browser.