Deflation and Monetary Policy in Taiwan

From 1999 to 2003, Taiwan faced a deflationary situation. The reasons for this deflation can be attributed to both domestic and global factors. Domestic changes including local political unrest, tensions with China, outbound investment to China, a weakened financial system, and a deteriorating government financial situation, provided the backdrop for the economic slowdown and corresponding deflation. A number of global factors, especially the bursting of the Internet and IT bubbles in late 2000 and the rise of China's economy, also heavily influenced both global and Taiwanese prices. This paper adopts a simplified aggregate demand and aggregate supply model to derive a deterministic equation of the GDP deflator (PGDP), and then applies quarterly data covering the period from 1982 to 2003 to estimate the PGDP equation using 2SLS. The empirical results are used to identify the sources of PGDP deflation in Taiwan. In addition, the phenomenon of price divergence appears since 2002 where the WPI increased and the CPI decreased. The causes of the WPI-CPI divergence are also investigated in this paper.

The prevalence of ocular diseases in primary and junior high school students on Orchid Island

AbstractObjectiveTo assess the prevalence of refractive error and ocular diseases in primary and junior high school students on Orchid Island.Materials and MethodsThis is a cross-sectional study of all students in the primary and junior high schools on Orchid Island conducted within 1 week in 2008. Each student received a visual acuity examination without correction with the Landolt-C chart. An experienced ophthalmologist performed associated assessments through retinoscopy, slit lamp, and fundoscopy.ResultsOf the 403 student residents, 260 were primary school students (139 boys and 121 girls) and 143 were junior high school students (74 boys and 69 girls). Visual acuity in two eyes was < 0.1, in 14 eyes was between 0.1 and 0.3, in 34 eyes was between 0.4 and 0.7, in 225 eyes was between 0.8 and 1.0, and in 531 eyes was between 1.2 and 2.0. Myopia was found in 21 students (21/403, 5.21%; 9 primary school students and 12 junior high school students). Four students (4/403, 0.99%) had amblyopia, of whom two had anisometropia (unilateral high hyperopia), one had high astigmatism in both eyes, and the other had unilateral esotropia. Lens dislocation was found in one student (0.25%) with Marfan syndrome. Retinal vasculitis and optic atrophy were found in one student (0.25%) with systemic lupus erythematosus.ConclusionBecause it is a small, isolated island, Orchid Island still has a unique traditional culture and life style. Therefore the prevalence of myopia in primary school and junior high school students on Orchid Island is low, and 94% of all the students had uncorrected visual acuity above 0.8