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Inflation is serious business for any nation's economy, and in the case of China, it is a growing area of concern for policymakers, economists, and other such types. This very topic is the subject of a recent policy brief written by Albert Keidel on behalf of the Carnegie Endowment for International Peace. Published in September 2007, this eight-page policy brief takes a critical look at the potential for an inflation crisis in China. After a brief narrative introduction, Keidel proceeds to offer a number of thoughtful recommendations. These recommendations include suggestions that the Chinese government should raise key deposit rates and enable farm diversification by increasing wheat and rice imports. The paper also notes, "The next fifteen months will be especially crucial for China. Foreign criticism has already been severe, thanks to imbroglios over food and toy safety, dollar-holding scares, and Olympics-related activism."
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