October 2021  
Expected inflation triggering further uncertainty to global recovery
TIER’s manufacturing composite indicator dipped yet again
Despite the world demands for end products have been increasing, the supply side has not yet been steady and sufficient. Disruptions in the supply value chains still taking place from time to time, not to mention the continuous shortage in commodities and incessant hiking shipping costs have jointly propped up the prices facing all economies. The producer price index has been increasing more significantly compared with the hiking of consumer price index almost everywhere in the world, which means the expected inflation is betiding. Because sooner or later, producers will have to transfer the costs to consumers eventually. The expected inflation is indeed triggering further uncertainty to global recovery. The crude prices have increasing by 70%, LNG by 100%, and coal by more than 180% on October 25th 2021 YTD. The Taiwan Institute of Economic Research (TIER) issued its business composite indicators in September. The manufacturing sector composite indicator dipped again despite of the solid performance in external markets. The service and construction composite indicators both went up nonetheless. ...Read more
UK and Taiwan sign MoU to enhance hydrogen and fuel cell technology cooperation
More than 100 U.K. and Taiwanese hydrogen and fuel cell businesses attended the first U.K.-Taiwan Hydrogen Forum on Oct.21st 2021, which was co-held virtually by the British Office in Taipei and the Taiwan Institute of Economic Research. British Office Taipei Representative John Dennis noted Taiwan’s importance in global hydrogen supply chains, adding the nation’s domestic fuel cell industry is “increasingly strong and innovative.” He said cooperation between the two nations in low carbon energy development, like offshore wind, is growing fast. At the event, a Memorandum of Understanding (MoU) was signed by Taiwan Hydrogen and Fuel Cell Partnership and Scottish Hydrogen and Fuel Cell Association. The two entities are committed to improving engagement, education, and supporting skill development in the future. U.K. Trade Envoy to Taiwan Lord Faulkner and You Cheng-Wei, Director General of the Bureau of Energy, Ministry of Economic Affairs also attended the virtual signing ceremony. Low carbon hydrogen technologies are critical to achieving net-zero, Lord Faulkner said. He said cooperation with Taiwan can help “mitigate early-stage development risks and create larger share market” for the emerging technologies. Taiwan's authorities claim the country will reach net-zero carbon emission by 2050. The U.K. government announced in August it would meet its ambitious goal of producing 5 GW of low carbon hydrogen by 2030. (Source: Taiwan News).

Food import ban key agenda in talks with Japan in joining CPTPP (Source: Focus Taiwan).
Taiwan Economic Research Monthly
The key to inflation lies in multiple dynamic forces
Inflation is one of the most common economic terms, but when people use this term is not necessarily with the same interpretation. Some people think that the translation of inflation is inappropriate, so this article directly uses the word “Inflation”. Many people in the early days of the definition of Inflation emphasized that it refers to the phenomenon that prices continue to rise for a period of time. In "The New Palgrave Dictionary of Economics", Michael Parkin defines Inflation as a process of continuously rising prices. However, some textbooks only define Inflation as an increase in prices over a period of time. Most people and the media more often refer to various price increases as Inflation and the rate of price increase as “inflation rate”. Therefore, the one-off rise in which prices continue to rise and the price rises and then stops, seems to be regarded as the same thing. However, the mechanisms, pros and cons, and countermeasures of these two phenomena are not the same, so there is still a need to distinguish between them.
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