Before 2006-07, China's GDP was able to grow at 8-10% with only moderate inflation. In 2006-07, some Chinese economists were arguing for more growth policies. However, with a GDP growth rate beyond 11% in 2007, China's inflation surged rapidly to a peak of 8.7%. Us the theory of the original Philips curve and Friedman's expectation augmented Philips curve to explain why (i) before 2006-07, China was able to grow at 8-10% with only moderate inflation; and (ii) there was a rapid surge in China's inflation in 2007. What kind of assumption is implicit in the above Chinese economists' argument for more growth policies? Is it a good assumption?