Will Food Price Controls Help China Fight Inflation?
Edward Harrison submits:I caught this at the bottom of Andy Lees’ morning note:China – To limit inflation China will impose price controls on food according to the NDRC, and will severely punish anyone found speculating on corn or cotton. “The policies that are being considered aim to contain the momentum and will be delivered in combination as a one-two punch”. The Chinese Daily says that one of the measures being considered is to give mayors the responsibility for a basket of food items, but it does not elaborate whether this means setting the price on a basket of goods or whether it means a kind of rationing. I think realistically, given the Lewis Point this is something we have to get used to as it is clearly going to be harder to maintain economic growth without inflationary pressures.Complete Story »