EU EURO COUNTRIES: Recession's second act would be worse than the first

Wednesday, September 28, 2011

RAYLOKESeptember 28, 2011 at 3:24 AM
Policymakers in China, the world’s third largest economy behind the U.S. and EU, face their own set of tough choices. Rapid growth rate has fueled inflation that is running at a double-digit rate, according to analysts -- much higher than official targets. To contain inflation, Beijing has raised interest rates five times and lifted banks' reserve requirements nine times since October. If it clamps down too hard, though, a deeper economic slowdown could reverse China's efforts to lift hundreds of millions of people out of poverty.
China is also coping with a banking hangover of its own, after years of massive government lending for expansion of state-owned enterprises an infrastructure upgrades.
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