Government intervention can solve this problem?

Government intervention can solve this problem?
Jan 15, 2008 01:11
ICEBERG Points: Join Date: Sep 10, 2007 Status: offline	What is the fatal menace to China's economy? Most people may tell you that inflation and soaring prices of food and other stuff. Exactly. they are two big problems for those Chinese top economists. If prices of food and other products can not be controled well, inflation will break sooner or later. In order to cope with increaing prices, the government made an announcement that the prices of oil, natural gas and electricity shouldn't be increased in recent days. Otherwise, those who break the rule will be punished severely. Actually, not only China faces inflation but also the whole world suffers it too. Some people even say that China's soaring prices is might escalate global inflation. Do you think so? It seems that the government has made up its mind to combat soaring prices. However, there is a cerntain amount of people who don't think government intervention will solve this problem. Or it might be effective in short term but the situation might be more severer. What do you think? Government intervention can solve inflation?

Jan 15, 2008 01:11

ICEBERG
Points:
Join Date: Sep 10, 2007
Status: offline

What is the fatal menace to China's economy? Most people may tell you that inflation and soaring prices of food and other stuff. Exactly. they are two big problems for those Chinese top economists. If prices of food and other products can not be controled well, inflation will break sooner or later. In order to cope with increaing prices, the government made an announcement that the prices of oil, natural gas and electricity shouldn't be increased in recent days. Otherwise, those who break the rule will be punished severely. Actually, not only China faces inflation but also the whole world suffers it too. Some people even say that China's soaring prices is might escalate global inflation. Do you think so?

It seems that the government has made up its mind to combat soaring prices. However, there is a cerntain amount of people who don't think government intervention will solve this problem. Or it might be effective in short term but the situation might be more severer.

What do you think? Government intervention can solve inflation?

Jan 15, 2008 10:01

APAULT
Points:
Join Date: Mar 11, 2006
Status: Offline

Not only WILL China's inflation escalate world inflation, but China's booming economy (plus India's etc) is a major cause of it. Demand for resources has far outstripped the immediately available supply. Australia just cannot export coal fast enough. There is an increasing shortage of foodstuffs as nations want to buy more food on the international market, or they want corn and other products as an oil substitute as they goes up in price.

But one question Iceberg. You said inflation will break.... do you mean end? If so, I don't see yr point. Or do you mean break the economy? Or something else?

Jan 16, 2008 03:27	#2
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	Sorry, paul. It should be 'inflation will be break out'.

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