Inflation, Deflation, Monetary policy
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Inflation, Deflation, Monetary policy

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  • College
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When PRC began its economic reforms in 1978, the Sleeping Giant as quoted by Havely (CNN.com) has now become the second largest economy worldwide according to International Monetary Fund data of 2010. Basically, PRC is still a communist country ruled by the Communist Party of China. Compared to its closed-door policies until the mid-1970s, the liberalization it initiated has generated more business opportunities for entrepreneurs especially in small-scale enterprises. When the government relaxed its price control and promoted foreign investment, the United States started to invest in PRC beginning 1979 after both countries establish diplomatic relations. With Japan as their fund provider since 1978 through soft loans, PRC is now the fastest growing major economy in the world. Its success

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