<< IMO, Chinese economic policy is Keynesian on steroid. Even ordinary Chinese citizens understand that the government prints a lot of money to spend on public projects and that causes high inflation rate. -Xman >>
Keynesian is such an ambiguous term these days. It usually requires about 3 to 4 paragraphs to qualify and explain exactly what it means. But if it means deficit-financed public expenditures, the Chinese have been rolling in surpluses for years.
As for monetary policy, the Chinese manage a crawling peg to the US dollar. That can make managing inflation a tough challenge in addition to navigating 7% to 11% real growth rates.
<< Recently, Chinese TV showed a brand new highway in a mountainous area near Tibet, the road features more than a dozen of bridges crossing over mid and small-sized canyons, some of them looked quite futuristic with columns hundreds of meters above the canyon floor. >>
That transportation infrastructure is part of a larger campaign to encourage ethnic Chinese to settle Tibet and establish sufficient facts on the ground so impolite foreigners stop challenging China's right to do as they please in Tibet.
