How China Counter Inflation Essay

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Using this newspaper article http://www.bloomberg.com/news/2011-07-06/china-raises-interest-rates-for-third-time-to-curb-accelerating-inflation.html
Discuss what kind of policies China?s government is using to counter inflation. (e.g import, export, currency, required reserve ratio and foreign institutional investment. etc) ? include more point that is also not inside the newspaper article. (e.g foreign institutional investment. etc) Briefly talk about restricted mortgages and home purchases.
Do the policies work? If no, why is it doesn?t work as they expected.

Using the economic diagram to explain the situation (e.g supply and demand graph to explain what will happen when increase of the required reserve ratio)
best to have graph whenever necessary

Requirement of the essay:
-Evaluating the newspaper article.
-Analysis of the information presented in the article and how the event could be explained using economic models.
-Assessing the suitability of the economic model to analyze the event and what are the limitations of the models.
-Presentation in putting forward the information and analysis you have in a form, which is clear, accurate and easy to understand.

Words count must be 1200-1300
Cannot be more than 1300

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