China’s Inflation within forecasts


The article reports the Inflation figures in line and in control with those numbers earlier predicted and targeted in China. The Chinese Central Bank decided for its monetary policy in 2017 as set to be “prudent and neutral” to keep appropriate liquidity levels and avoid large injections. China has shifted away from a relatively loose monetary policy that helped growth over the past years, gradually guided interbank lending rates higher and tightened supervision on non-performing assets, shadow banking and local government financing.


Topics covered are Interest rates, Inflation, relationship between Interest rates and Inflation, contractionary monetary policy and its consequences. Explain using the National output diagrams and discuss the combined effect of contractionary monetary policy on Inflation, Economic Growth and unemployment.


Evaluation will include effectiveness of Monetary policy to tackle Inflation and its further effects on Unemployment, Economic Growth , impact on the consumers, producers and society in short term and long term.