Chinese Economy and Fed Policy

[dancingshoes]

unless there are surprising changes in the US economy, we can expect the Fed to start raising interest rates later this year, as Janet Yellen has proposed, and to continue raising them in 2016 and beyond. I only hope that it raises them enough over the next 18 months to avoid the financial instability and longer-term inflation that could result from the long era of excessively easy monetary policy.

Read more at https://www.project-syndicate.org/c...-martin-feldstein-2015-09#iohzM58DCv1esHUw.99

 

[gingerlyn]

i expect MAS to increase interest rates very soon and also to impose higher GST.

according to economist, it is the best time for PAP to increase gst to combate deflation.

 

[dancingshoes]

i expect MAS to increase interest rates very soon and also to impose higher GST.

according to economist, it is the best time for PAP to increase gst to combate deflation.

unlikely, MAS wants weaker SGD to spur inflation and not strong SGD.

 

[gingerlyn]

unlikely, MAS wants weaker SGD to spur inflation and not strong SGD.

MAS unable to do this because SGD is not weaker against south east asian currency / AUD / NZD
SGD is only weaker against USD.
however most of singapore imports are from South EAST ASIA / AUSTRALIA and NEW Zealand.

 

[dancingshoes]

MAS unable to do this because SGD is not weaker against south east asian currency / AUD / NZD
SGD is only weaker against USD.
however most of singapore imports are from South EAST ASIA / AUSTRALIA and NEW Zealand.

they can intervene if they want but in accord, we are net importer, if we lower SGD, things will be more expensive. SGD is trading with a basket of currencies and it's near the lower NEER band currently.

 

[gingerlyn]

THE easier way and best way is to impose higher gst to say 11%.
that is PAP wish.
kill 2 birds with 1 stone.
get higher revenue to fund temasek and combat deflation

 

[dancingshoes]

THE easier way and best way is to impose higher gst to say 11%.
that is PAP wish.
kill 2 birds with 1 stone.
get higher revenue to fund temasek and combat deflation

how does increasing gst spur inflation?

 

[gingerlyn]

how does increasing gst spur inflation?

no need to smoke auntie gingerlyn lah.
i am not a wet market auntie.
i got go to school and got degree and widely read.

gst and inflation in malaysia
https://www.pwc.com/my/en/assets/press/july2013-consult-the-experts-(gst).pdf

gst and inflation in japan
http://www.japantimes.co.jp/news/20...n-tax-hike-lifts-inflation-to-a-23-year-high/

gst and inflation in australia
http://eprints.qut.edu.au/423/

you think only you know economics in this forum meh