China is leading world into inflation
Posted in Inflation on March 14th, 2010 by Paul Deng – Be the first to comment
China is the first to lead the world economy out of recession, and now it is the first leading the world into high inflation.
Massive government stimulus and money printing will put emerging economies on the inflation alert first, then developed economies will follow suit. I don’t believe governments and central banks can time well when to raise interest rate — the bias toward lower unemployment will almost guarantee interest rates will be raised too slowly, and too late.
Also read former Morgan Stanley Asia Chief Economist Andy Xie’s comments on the outlook of inflation in the world (in Chinese).
