Book contents
- The Cambridge Economic History of China
- The Cambridge Economic History of China
- The Cambridge Economic History of China
- Copyright page
- Contents
- Figures
- Maps
- Tables
- Contributors to Volume II
- Acknowledgments
- Note on Citations
- Introduction to Volume II
- Part I 1800–1950
- 1 Ideology and the Contours of Economic Change
- 2 Economic Transition in the Nineteenth Century
- 3 Agriculture
- 4 Handicraft and Modern Industries
- 5 The State and Enterprises in Late Qing China
- 6 State Enterprises during the First Half of the Twentieth Century
- 7 Money and the Macro-economy
- 8 Public Finance
- 9 Financial Institutions and Financial Markets
- 10 Chinese Business Organization
- 11 The Economic Impact of the West
- 12 Foreign Trade and Investment
- 13 Transport and Communication Infrastructure
- 14 Education and Human Capital
- Part II 1950 to the Present
- Index
- References
7 - Money and the Macro-economy
from Part I - 1800–1950
Published online by Cambridge University Press: 07 February 2022
- The Cambridge Economic History of China
- The Cambridge Economic History of China
- The Cambridge Economic History of China
- Copyright page
- Contents
- Figures
- Maps
- Tables
- Contributors to Volume II
- Acknowledgments
- Note on Citations
- Introduction to Volume II
- Part I 1800–1950
- 1 Ideology and the Contours of Economic Change
- 2 Economic Transition in the Nineteenth Century
- 3 Agriculture
- 4 Handicraft and Modern Industries
- 5 The State and Enterprises in Late Qing China
- 6 State Enterprises during the First Half of the Twentieth Century
- 7 Money and the Macro-economy
- 8 Public Finance
- 9 Financial Institutions and Financial Markets
- 10 Chinese Business Organization
- 11 The Economic Impact of the West
- 12 Foreign Trade and Investment
- 13 Transport and Communication Infrastructure
- 14 Education and Human Capital
- Part II 1950 to the Present
- Index
- References
Summary
An understanding of how the money market developed is vital because money serves as the blood of an economy. From 1800 to 1937, the Chinese money market transitioned from a highly fragmented bimetallic system to a gradually integrated silver yuan system in tandem with a silver-backed fiduciary paper-money system until a fiat money system was established. As a consequence, the economy became increasingly monetized as the growth rate of the money supply gradually surpassed the overall economic growth rate without evident inflation pressure on general price trends. This development resulted both from the efforts of governments and private institutions in response to various types of shock separately and from the outcomes of competition and co-operation between the two stakeholders over time.
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- Information
- The Cambridge Economic History of China , pp. 208 - 243Publisher: Cambridge University PressPrint publication year: 2022