2008 Economy Crisis - Essay Example

Inflation in China During the last several months before the crisis inflation was considered to be the most serious problem in China. In the year 2007 the level of inflation in China became the highest in the world. This influenced the prices for food. In 2007 the prices for food became 12% higher. The government tried to conceive people that it was not its fault. However, due to many new employment opportunities, the standard of living in China was growing and, consequently, bourgeoisie was not pleased in it.

The main reason of inflation was not the increasing of the volume of credits and foreign investments as the experts tended to think. Chinese inflation was caused by the problems in the world economy, which also strengthened the inflation in other countries. In addition to government’s desire to decrease the income of employees, the inflation was also caused by the inflation of dollar and euro. In 2008 the first important factor was the influence of stock markers. Another factor, which caused inflation, was the difficulty with sales of goods produced in China and other countries of industrial periphery (China Inflation Rate).

In 2013 the inflation in China amounted to 2.6% that was much lower that the index set by the government at the beginning of the year. The rapid growth of Chinese economy during the last few years made the country one of the most prosperous in the world, thus the situation is improving in all the areas (China Inflation Rate).Works CitedChina Inflation Rate. Tradingeconomics.com.Web. January, 3, 2014.