Thursday, October 22, 2009

Disappointing Growth

China's third quarter growth number was deemed "disappointing"-only 8.9%! Just about any country would love to have that kind of "disappointment".....

China has gone from being dependent on inflationary booms abroad to creating an inflationary boom at home. They would be well-advised to tighten monetary policy now to limit the inflationary excesses, by for example allowing the yuan to appreciate against the dollar again or by increasing reserve requirements.