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Tuesday, November 30, 2010

"Administrative Measures are Not Effective in Controlling Inflation"

The old raise the price by shrinking portion size trick:

During the sixty years of the People's Republic, we have learned that administrative measures are not effective in controlling inflation. For instance, the government often forbids university canteens from raising food prices, so prices do not change. Instead the portions get smaller. Unfortunately the government is doing the same again.

    Posted by on Tuesday, November 30, 2010 at 02:40 AM in China, Economics, Inflation | Permalink  Comments (18)


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