Well, inflation happens anywhere. China's domestic inflation is not any worse than most of other nations. China's rise in CPI was not a problem until last year, and the government took a quick action against it with macro economical control. So what is the problem?
The clock is ticking for USA....
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Well, inflation happens anywhere. China's domestic inflation is not any worse than most of other nations. China's rise in CPI was not a problem until last year, and the government took a quick action against it with macro economical control. So what is the problem?
It's not a problem. It's given also as a reason for such an increase in GDP in recent years.
jeypore
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Yes but ofcourse, where the rise of Inflation rate while at growing stage was - .7%, remarkable, the best the best, no words to discribe the potential of the Chinese Gov't possiblilities!!!!
What about the Currency?
chauism, you have a strong affinity towards your current form of governance, like I have towards democracy.
We can keep exchanging posts for weeks un-end. But it's not gonna change a thing. We can agree to disagree. lets end it here. lets readers decide what they want.
I do admire China and I want China to succeed because it is driving other countries in Asia to economic prosperity. We, in asia, can be like western countries, may be better, developing at a pace no one could ever dreamt of.
Bold part here is logical, could be right. But I want India to prove it wrong for world's sake.
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True_Pakistan_Zindabad
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Well, if you want to do a comparison. China's inflation in 2007 was 1.7% vs India's 6.2%, and in 2009 despite the soaring of CPI in the early half of the fiscal year, with government's macro measurement China still manages to have - 0.7% for its inflation versus India's 10.90%.
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2092rank.html
Inflation rate(consumer prices)(%) 2007 country ranks
This had been discussed in the earlier post.
jeypore
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About the Currency???? or the Inflation???
You cannot compare inflation of two countries, % of inflation dependent on that particular country previous year only, not for past 10 years.
For example hypothetically, in 2004 if china's inflation was at 12%, the next year inflation even if it's 15% higher than in 2004, it'll be said to be around 3%. Because they are just taking previous year into account.
So to get the real inflation. you need to find cumulative inflation for 10 years.
Also, India's inflation is so high because of supply side problem and poor monsoon where we have high demand. Fortunately China has good supply chain system. And it managed inflation by fixing its exchange rate to a dollar. India didn't opt for this.
Also inflation is just given as one of the reason. Tell me what do you think is the reason for such an increase in GDP in your perspective? Why can't India achieve the same?
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Inflation is just like GDP growth, you can compare it yearly, as the growth also take into account as a whole for the next year.
Even for cumulative inflations for the past 10 years, China was better than most other countries. Sorry to bring India into this again, here is a comparison of both inflation and real GDP growth for the past 8 years.
India Inflation rate (consumer prices) - Economy
China Inflation rate (consumer prices) - Economy
India GDP - real growth rate - Economy
China GDP - real growth rate - Economy
If you want to know why is the cause of China's growth, there will be many factors that can contribute to it. One of those is government's ability to steer the economy to the right directions when it is facing difficulties without any interference. China's uniquely high saving rates also means there more money the government can invest in the domestic projects via banks. Increasing in the wages in recent years and lifting hundreds of millions people out of poverty also mean that there is huge demand for domestic consumption. Getting rid of agriculture tax will increase the purchasing power of people from rural areas. That is just couple things right of my head. Will tell you more when I come to find those.
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Alright man, you win , I loose. There's no point in discussing further. I told you, you cannot compare inflations of two countries. What you get for a certain price in India, you may not get it for that price in China. We have to import almost all the things, China being manufacturing nation can get everything for cheap. We impose heavy tariffs on our imports that drives our inflation to skies. That's why I said we have supply side issues.
Just tell me one thing, Why do you think India cannot achieve what China had achieved for past 10 years? India do have a prime minister who is a Cambridge economist, who has studied this for living and who knows better than any of us.
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Fighter488
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China No. 2 eco, topples Japan
On Course To Displace US From No. 1 Slot By 2025 Depending On Forex Rate Rise
Beijing: China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.
Depending on how fast its exchange rate rises, China is on course to overtake the US and vault into the No. 1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others. China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.
"China, in fact, is now already the world's secondlargest economy," he said in an interview with China Reform magazine posted on the website (»¶Ó·ÃÎʹú¼ÒÍâ»ã¹ÜÀí¾ÖÍøÕ¾!) of his agency, the State Administration of Foreign Exchange. Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan's or America's. "China is still a developing country, and we should be wise enough to know ourselves," Yi said, when asked whether the time was ripe for the yuan to become an international currency.
"China's economy expanded 11.1% in the first half of 2010, from a year earlier, and is likely to log growth of more than 9% for the whole year. China has averaged more than 9.5% growth annually since it embarked on market reforms in 1978. But that pace was bound to slow over time as a matter of arithmetic," Yi said.
If China could chalk up growth this decade of 7-8% annually, that would still be a strong performance. The issue was whether the pace could be sustained, Yi said, not least because of the environmental constraints China faces. In an assessment disputed by Beijing, the International Energy Agency said last week that China had surpassed US as the world's largest energy user. If China can keep up a clip of 5-6% a year in the 2020s, it will have maintained rapid growth for 50 years, which Yi said would be unprecedented in human history. REUTERS
US GDP growth at 2.4%:
US Gross domestic product expanded at a 2.4% annual rate, the Commerce department said in its first estimate on Friday. REUTERS
China No. 2 eco, topples Japan
On Course To Displace US From No. 1 Slot By 2025 Depending On Forex Rate Rise
Beijing: China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.
Depending on how fast its exchange rate rises, China is on course to overtake the US and vault into the No. 1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others. China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.
"China, in fact, is now already the world's secondlargest economy," he said in an interview with China Reform magazine posted on the website (»¶Ó*·ÃÎʹú¼ÒÍâ»ã¹ÜÀí¾ÖÍøÕ¾!) of his agency, the State Administration of Foreign Exchange. Cruising past Japan might give China bragging rights, but its per-capita income of about $3,800 a year is a fraction of Japan's or America's. "China is still a developing country, and we should be wise enough to know ourselves," Yi said, when asked whether the time was ripe for the yuan to become an international currency.
"China's economy expanded 11.1% in the first half of 2010, from a year earlier, and is likely to log growth of more than 9% for the whole year. China has averaged more than 9.5% growth annually since it embarked on market reforms in 1978. But that pace was bound to slow over time as a matter of arithmetic," Yi said.
If China could chalk up growth this decade of 7-8% annually, that would still be a strong performance. The issue was whether the pace could be sustained, Yi said, not least because of the environmental constraints China faces. In an assessment disputed by Beijing, the International Energy Agency said last week that China had surpassed US as the world's largest energy user. If China can keep up a clip of 5-6% a year in the 2020s, it will have maintained rapid growth for 50 years, which Yi said would be unprecedented in human history. REUTERS
US GDP growth at 2.4%:
US Gross domestic product expanded at a 2.4% annual rate, the Commerce department said in its first estimate on Friday. REUTERS
Congrats China. You are an inspiration to all the asian countries except your political system.
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This is not a win or loss conversation. My point was that China has kept its inflation under a reasonable margin for its growth.
The answers I had given to you in my OP. It was added later, so you can look it again.
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