China: Inflation

China: Economic Issue Inflation

For your country, find a recent news article discussing an economic problem or issue.

1) Summarize the issue. Include a link.

http://www.nytimes.com/2012/04/10/business/global/food-prices-push-rate-of-inflation-up-in-china.html?_r=1



- One of the main problems in china is inflation due to the prices of food.

- Inflation increases as the costs for raw materials rises.

- Mainly is a problem to Chinese family because it is where most of their household income money goes towards.

- Prices increase due to the weather conditions.

- Spring onion and cabbage are one example in which the prices has increase.



2) Relate the issue to one or more of the economic concepts we have discussed in class.

The main issue involves inflation. One of the graphs that can show this issue is to look at the supply curve. This will affect the supply curve and shift it to the right. As a result it causes the food prices to increase and a decrease in quantity.





3) Can you suggest a resolution to this problem? Are there policies that could improve the situation?

Beijing policy makers are still currently coming up with policies. I think a resolution to this problem is to wait it out because due to the weather, it’s hard for the agriculture sector to produce enough goods. Inflation is not necessary bad for the economy. Although one of the things I was thinking about was coming up with different substitute for specific food items to help customers to be able to afford food.


Work Cited

WASSENER, BETTINA. "Food Prices Push Rate of Inflation Up in China - NYTimes.com." NY Times Advertisement. N.p., n.d. Web. 9 Apr. 2012. <http://www.nytimes.com/2012/04/10/business/global/food-prices-push-rate-of-inflation-up-in-china.html?_r=2>.