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China has entered the era of inflation. The next five years, the average inflation rate depends mainly on the case of monetary expansion over the past decade. Need to do now is to protect the stability of the inflation era.

Inflation does not mean instability. Many economies have experienced higher inflation, but economic growth did not stop. Maintenance of stability of the necessary conditions for the next few years will be the inflation rate to a level similar to the expected. The next five years, China's C PI average inflation rate is likely higher than 5%. The deposit rate Cheap Ultra Boost 3.0 , at least short-term deposit rates raised to this level as soon as possible, is essential. Otherwise, depositors can take money out, the hoarding of consumer goods Cheap Adidas Ultra Boost Shoes , which will lead to inflation crisis. Priority to keep inflation stable, that is willing to continue to depositors in the bank deposits.

If all prices rise together, no one is immune. However, the development of inflation in this way rarely. Often bear the pain of inflation Cheap Ultra Boost Shoes , fixed income groups, such as pensioners, retired people. Inflation often reflects the government's financial burden, so that the assumption of debt (including pension liabilities and bank deposits) has shrunk Cheap Adidas Ultra Boost , is often its unspoken goal. This is why inflation is often accompanied by social instability. However, the Chinese government's very strong financial capacity. Public sector revenue-GDP ratio in all the major economies is the highest. China's fiscal pressure from a strong desire to invest. If the Government can limit or slow down investment, the pension and other fixed payments and inflation remained at the same level, there is no financial difficulties.

Market forces will wage Cheap Ultra Boost , especially blue-collar wages rose faster than nominal GDP. However, local governments often use administrative power to suppress wages and business together. This is a huge mistake, because the wage increase is to rebalance the Chinese economy, to shift spending away from investment in the best way.

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