From the Readers

How best to fight inflation

(China Daily)
Updated: 2011-04-19 08:57

Comment on "Price rises must stop, group says" (China Daily, April 14)

The authorities have to determine the exact cause of inflation - whether rising prices of imported raw materials is increasing inflation, or whether internal forces are at work.

True, "imported" inflation can be adjusted by releasing stocks or lowering duty and value added tax. But if "imported" inflation persists, there is little that a government can do.

On the other hand, if internal forces are increasing inflationary pressure, the authorities should find ways to control it. Land reform and controlling housing prices can be potent methods to contain inflation. But I don't think changing the family planning policy to solve the labor shortage problem will help, because China's population is already huge.

Admittedly, it is a very complicated situation. And it is very important that the central and local governments take cautious and effective steps to ease the situation.

Manman, on China Daily website

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(China Daily 04/19/2011 page17)