Who Pays the Price of Price Control: Consumers and now Shareholders

Stephen Green penned an excellent editorial on inflation in the Asian Wall Street Journal recently. At the end, he argues “The Golden Years are over, at least for the moment. The time for hard choices is here.” I couldn’t agree more. Instead of implementing more effective monetary policies (a combination of hiking interest rates and […]

Inflation equals monetary tightening equals asset deflation

The rumors were correct. April inflation came in at 8.5%, showing no sign of slowing from the 8% range first reached in February. This will not allow the People’s Bank of China (PBOC) to relax monetary policies. In fact, we can expect further increases in reserve requirements and quite possibly an interest rate increase before […]