In contrast to the supply shocks of the 1970s, much of the recent run-up in prices has been caused by rapidly rising demand: oil is dear in part because some economies, especially America's and China's, have been growing vigorously.

ECONOMIST: Running out of puff? | The

China's small and medium enterprises, for example, paid a dear price as state-owned entities and local governments received the lion's share of the limited supply of loans from commercial banks.

BBC: Viewpoint: Will Asia see further price growth in 2012?

The China of today is still loaded with people living on boats and in small rural homes who hold dear to heir old flip-top black and white cell phones while dreaming of an iPhone 5.

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