The chief of Federal Reserve - Ben Bernanke, now is the main reason for turning back of asians economies to the centralized state control, commented Bloomberg. Under the rule of Bernanke, the American Central Bank made its stronder interest decreasement from 1990, which restricted the opportunities of Asians economies to act versus inflation. In stead of increasing their own interest level, to decrease the efect of price preassure, Asian governments should freeze the prices of some basic goods.
China now restricted with law the price of meat and eggs, in Indonesia and Filipines, the state will give subsidies for homes and business. This can bring some negatives for the economy.
"Returning the state control, will be a step back for China, who long years is trying to redirect its economy to free market system", commented analyzer from Fitch - Hong Kong. "Price control will not work, because it is not solving the problem, and only make symptoms easier", continued he.
The part that Bernanke took in Asian problem with inflation, is in the fastest decreasing of interest levels, that the banker did. Just for a quarter of year he decreased the interest level from 5.25% to 3.00%. Growing interest diferencial, brings to large income of forein invests to developing markets in Asia, which may be a sign for inflation top and hard economy consequences. In this way the Central Banks of China and India can do nothing, because if they increase the interest level, fighting the iflaion they will take more foreign invests in the country.
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