Amid mounting pressure from rising domestic prices, the Chinese central authorities said Tuesday it would put both overheating hazards and inflation risks at the top of its macro control targets next year. Endeavor will be made to prevent the national economy from overheating and at the same time to avoid the evolvement of real inflation on the back of current price hikes, according to a conference of the Political Bureau of Communist Party of China (CPC) Central Committee. The conference was presided over by Hu Jintao, general secretary of the CPC Central Committee.
The new goal comes in reaction to soaring prices in the second half of the year. The latest monetary policy report published by the central bank said excessive growth in investment, ballooning trade surplus and credit remained the prominent problems of the Chinese economy.
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problems would be easier to deal with if they had control of the yuan. Instead they pass bad and ineffective legislation that attempts to make investments in real estate and the stock market less attractive. Having said that, I don't believe the government will risk a collapse in the yuan by making aggressive changes to break free of the dollar. Given my knowledge and understanding of macroeconomics, I should stop here.
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