Suchergebnisse

THIS ARTICLE EXAMINES THE CAUSES AND CONSEQUENCES OF INFLATION IN CHINA. THREE CAUSES OF THIS INFLATION ARE EXAMINED: 1) PARTIAL DECONTROL OF FOOD PRICES, 2) RUNAWAY MONEY SUPPLY, AND 3) RELAXATION OF CONTROLS OVER CAPITAL INVESTMENT AND INSTITUTIONAL CONSUMPTION. FINAL ANALYSES CONCLUDES THAT THE INFLATION WAS CAUSED BY A WEAKENED GOVERNMENT, AND THAT IT WILL BE DIFFICULT TO MAINTAIN COMPLETE GOVERNMENT CONTROL IN TODAYS CHINA.