Rising! Prices is rising!

Tihs article was originally written to the newspapers, because the fierce rhetoric and not enough timeliness of the Bibi. This was quite well-known, China’s domestic demand is still cool to speak the truth of the newspaper.

Rising! Prices is rising!

The world has 10 million kinds of reasons why things prices. However, a food market to buy vegetables every day housewife, Kuanquanbuchongyao these reasons. What does she need not distinguish between what is local prices overall prices, if the same amount of money to spend less than the same amount of things she has actually decreased in the quality of life. And ordinary people, the inflation justify an either inflation is senseless and likes to chop logic, transform the concept of the hands of the people can not change the currency decline in the purchasing power of the facts.

Frankly, from the perspective of policy-makers, identify the root cause of inflation is crucial. Do not understand the root causes, not the right remedy. If the parties really like that, the inflation is the price of “structural up” rather than “full up”, it was quickly let people see a “structural up” and “full up” distinction. From the surge in the prices of pork a year ago, China’s prices have been “structural rise” up to a year and the trend, if the “structural” up to two to three years, then all of these concepts will become a joke game .

Yes, global inflation in many countries are suffering, the United States has been the high rate of inflation and continued rise in the shadow of Russia, Vietnam, Venezuela, Argentina also has been double-digit rate of inflation, not to mention has been denomination banknotes issued 10 million yuan in Zimbabwe. This may be an indication inflation is a global problem and not just a country of China, the inflation factor is global rather than China’s own. But just tell us that the inflation is not so simple, and this is fundamentally “full up”, “internal and external problems,” needs serious treatment, not a “structural rise.” Sit back and relax on the. Moreover, the rate of inflation different countries has shown, even in the global grain prices and the wave of rising oil prices, the response was different can be very different effects. European Central Bank loan crisis in the face of inflation still adhere to the bottom line, provide liquidity to the market at the same time not dramatically lowering interest rates, so as to maintain the euro zone currently relatively lower rate of inflation. The Central Bank of Russia in the large influx of oil dollars still adhere to the rouble exchange rate relatively stable, and the results are to return to double-digit inflation and to continue to冲高signs. China unlike Europe and the United States are worried about economic recession, it could be more determined to raise interest rates, at least it should allow the real interest rate is variable. There is the appreciation of the renminbi, relative freedom are the whereabouts of the dollar has no significance, and relative to other major world currency appreciation. No real sense of appreciation of Russia will is a lesson.

China has not developed a relatively good social insurance system, the low-income groups in Europe and America have a large amount of subsidies, particularly food consumption, and therefore must be in China on the issue of curbing inflation better. Nearly 30 years of history tells us that high inflation in China is a direct consequence of social instability. Since reform and opening up, China has experienced three high inflation: The first time was in 1985, inflation reached double-digit first, and then in 1986 occurred on a national student movement. The second time was in 1988, the inflation rate more than 20 percent, a strong start in the second year at the turn of spring and summer political storm occurred. Third, the high inflation in 1993 - 1994 years, the inflation rate for a first time the Chinese people see what is the real estate bubble. At this moment, we are re-dashed to the double-digit inflation, the gap in income distribution is not inflation can be compared to the previous three of the current China, the “structural” it is difficult to say will not bring up the “comprehensive”.

International experience tells us that the treatment of inflation, moderate means connivance, and prices rose one point each, the welfare of the people on the loss of one point. The Government should not on the definition of inflation in the circle around it Kuanquanbuchongyao. Face the issue squarely, to act more decisively is the key.

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