Silver fetters? The rise and fall of the Chinese price level 1928–34

Tai-kuang Ho () and Cheng-chung Lai

Explorations in Economic History, 2013, vol. 50, issue 3, 446-462

Abstract: We show how the silver standard transmitted world silver price fluctuations into China and made the Chinese price level closely linked to the world silver price. Inflation was transmitted between 1929 and 1931 when the world silver price was falling; while deflation was transmitted during 1932 and 1934 when the world silver price was rising. Using micro-level evidence and counterfactual simulations, we show that the exchange rate was the main shock transmission channel, and silver stocks played an insignificant role.

Keywords: Silver standard; Chinese economy; Structural VAR; Counterfactual response (search for similar items in EconPapers)
JEL-codes: C32 E32 E37 F31 F42 N15 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:exehis:v:50:y:2013:i:3:p:446-462

DOI: 10.1016/j.eeh.2013.03.001

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