China News
Posted by WARREN MOSLER on December 16th, 2009
HIGHLIGHTS
China Won’t ‘Explicitly’ Exit Stimulus Next Year
More residents upset over prices: PBOC survey
People don’t like inflation.
China grants zero-tariff to 90% of ASEAN imports
China trying to reduce costs to fight inflation, rather than support domestic jobs.
Must be a serious inflation problem?
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December 16th, 2009 at 4:12 pm
Tariffs on all imports increase prices, not just tariffs on goods from ASEAN. To fight inflation by reducing tariffs on only ASEAN goods doesn’t make sense, does it?
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winterspeak Reply:
December 16th, 2009 at 8:12 pm
Depends on % imports from ASEAN vs non-ASEAN sources. If ASEAN is larger enough % of imports, this could be material
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December 20th, 2009 at 11:43 am
Just in case you thought Chinese officials had any more clue than American ones:
http://www.shanghaidaily.com/article/print.asp?id=423054
So the current account deficit is decreasing, which reduces the foreign supply of dollars, but that will inevitably lead to a lower dollar?
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