Wednesday 6 April 2011

Growthflation


Is it possible to have high economic growth and low inflation?

Most Asian economies devote large amount of subsidies to keep inflation low, while maintaining a modest growth rate.

The new set of forecasts by the Asian Development Bank, suggest that China will be able to achieve that aim...

But then again, China's inflation at 5% seems high, so it's just proof that inflation rates are not completely comparable across country, think the appropriate concept is the inflation divergence away from the norm (i.e. actual inflation less normal inflation)

1 comment:

  1. The new set of forecasts by the Asian Development Bank, suggest that China will be able to achieve that aim...

    no way

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