According to the latest forecast by the Directorate General of Budget, Accounting and Statistics, Taiwan's economic growth is expected to reach 4.5 percent in 2011, with the consumer price index rising moderately by 1.85 percent. Although the government is optimistic about the economic situation, the rally in global commodity prices -- fueled by the quantitative easing policy in the United States -- will be a major source of uncertainty for the economy next year. Rising import prices will inevitably push up consumer costs. The soar in domestic real estate prices, meanwhile, will likely increase inflationary pressure. Inflation expectations could encourage people to buy property to preserve the value of their assets, which might in turn worsen the inflation situation. Under these circumstances, the government must seek to cool the housing market by strengthening credit controls on housing speculators and imposing heavy taxes on speculative transactions. The central bank should also consider significantly raising key interest rates. (Editorial abstract -- Dec. 7, 2010) 