Economic Reform and Money Supply

Zhang Ling

Chinese Economy, 1991, vol. 24, issue 3, 26-34

Abstract: Since 1979, China has been undergoing price reforms. Up to 1987, the price reforms can be divided into two periods: The first period, 1979-84, concentrated on price adjustments, and the second period, 1984-87, dealt with price development or the enlargement of the price differential. These reforms speeded up the growth and development of the Chinese economy and the people gained experience from it. On the other hand, the reforms fueled the rise of prices. This article provides some ideas on how to solve the inflation problem related to the control of the money supply.

Date: 1991
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