  In the near term, total CPI inflation is expected to remain above 3 per cent, largely reflecting temporary factors such as significantly higher food and energy prices.
In other words, it has to run its economy at an exceptionally fast pace, and is reluctant to adopt policies which might run counter to this aim in the short run, even if they would contribute to maintaining longer-run sustainability. 5  See Dooley, Folkerts-Landau and Garber (2003 and 2005) for an interesting account of the Asian approach to balance of payments adjustment.