Asian countries have woke up from 1997 economic crisis. They have more than 3 trillions US dollars in their foreign reserve, a spectacular figure never ever before. Many of them showing good macro economic indicators. Though inflation rate seems well under control, to me this relatively low inflation is a question mark. I'd like to highlight countries with high unemployment rate and people who live under poverty line is increasing. With so many people are jobless surely they don't have money to spend. Overall country spending is less, thus pull the inflation rate down.
Therefore we have to think and analyze whether this low inflation rate is a result of good economic performance of the country or simply because of poverty of the people who don't have money for shopping even to fulfill their basic needs. If shops have no buyers then automatically the prices remain stagnant if not going lower. Thus no inflation but deflation. So the fact is that lots of people are jobless and those without their other family members' financial support are living in poverty.
The most important task for a responsible government is to create jobs for its people. Economic development alone, even at high rate, is meaningless if it can not give job to majority of the people. If government can not create the jobs or can not facilitate the conditions leading to jobs creation by private sectors then the government is considered fail.
Therefore we have to think and analyze whether this low inflation rate is a result of good economic performance of the country or simply because of poverty of the people who don't have money for shopping even to fulfill their basic needs. If shops have no buyers then automatically the prices remain stagnant if not going lower. Thus no inflation but deflation. So the fact is that lots of people are jobless and those without their other family members' financial support are living in poverty.
The most important task for a responsible government is to create jobs for its people. Economic development alone, even at high rate, is meaningless if it can not give job to majority of the people. If government can not create the jobs or can not facilitate the conditions leading to jobs creation by private sectors then the government is considered fail.
