Aaron Back
Wall Street Journal
12/3/2010
BEIJING—China will shift to a “prudent” monetary policy next year, the ruling Communist Party decided on Friday, a move that formalizes the government’s change in priorities away from driving all-out economic growth toward combating inflation.
The change in the official language used to describe the government’s economic policy, from the current “moderately loose,” solidifies a transition that has taken place over the last several months. At a time when the U.S. and other major economies are still struggling to propel economic growth, China has increasingly focused on containing inflation and asset-price bubbles, and phased out some of the supportive policies …
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