Exporting Hyperinflation: The Long Arm of Chiang Kai-shek

Richard Burdekin () and Hsin-hui I. H. Whited
Additional contact information
Hsin-hui I. H. Whited: University of Southern Colorado

Claremont Colleges Working Papers from Claremont Colleges

Abstract: As mainland China's inflationary spiral accelerated in 1947-1949 there was a massive outflow of funds to the island of Taiwan. The exporting of China's hyperinflation was facilitated by the fixed, overvalued, exchange rate between the mainland Chinese currency and the Taiwanese currency that was adopted in August 1948. Empirical tests offer support for the importance of the 1948 monetary policy reform and suggest a substantial impact of capital inflows and excess money growth in mainland China on inflationary pressures in Taiwan. We find no independent role for Taiwanese money growth in the inflation process.

JEL-codes: E31 E65 F42 N15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn
Date: 2001-06
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.claremontmckenna.edu/rdschool/papers/2001-18.pdf (application/pdf)

Related works:
Journal Article: Exporting hyperinflation: The long arm of Chiang Kai-shek (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:clm:clmeco:2001-18

Access Statistics for this paper

More papers in Claremont Colleges Working Papers from Claremont Colleges
Contact information at EDIRC.
Series data maintained by ().