China' s Economy overheated?

China' s Economy overheated?
Jul 23, 2007 21:51
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	The CPI esceeded 4% in June. The average in the first half of this year also exceeded 3%. The CPI is regared as one of the indexes which reflect whether the economy is overheated or not. Meanwhile, the central bank raised the interest rates and lowered the interest tax. What do those measures suggest? Some people say that these reflect that China's economy is overheated. Others even raise a question that whether China will come across an economic crisis. What is your opinion, overheated or not? Will a economic crisis happen in China?

Jul 23, 2007 21:51

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

The CPI esceeded 4% in June. The average in the first half of this year also exceeded 3%. The CPI is regared as one of the indexes which reflect whether the economy is overheated or not. Meanwhile, the central bank raised the interest rates and lowered the interest tax.

What do those measures suggest? Some people say that these reflect that China's economy is overheated. Others even raise a question that whether China will come across an economic crisis.

What is your opinion, overheated or not? Will a economic crisis happen in China?

Jul 24, 2007 23:13	#1
KEVIN0518 Points: Join Date: Mar 13, 2007 Status: Offline	Well, it is indeed overheated. The CPI index, the price of house and pork is rising and rising. Is it nornal? I do not think so. It suggests that inflation may break out. If the government could not adopt proper macro-control methods, the economic crisis may happen.

Aug 2, 2007 02:14	#2
YVONNE Points: Join Date: Nov 29, 2004 Status: Offline	Many news report that China's economy is on the verge of overheating.The government begins to adopt measures to curb the potential inflation and excess liquidity, for example, raising the reserve ratio and limiting the credit to those investors in real estate. It seems that some problems may occur with the fast economydevelopment. Will China's economy keep growing?

Aug 23, 2007 23:06

LEOPOLD219
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Join Date: Feb 7, 2007
Status: Offline

China's economy is indeed overheated. They government has tried many ways to curb the inflation. Several days ago, the central bank announced to raise the interest rates again. It is the fourth time the central bank has raised it in 2007. All the moves aim at cooling down the economy and curbing the inflation problem. Though the economy is developing very fast and seems overheating, I believe that the economic crisis won't happen.

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