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Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China

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  4. Vol. 30, Issue 1
  5. pp. 35–51

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Bernholz, P. Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China. Credit and Capital Markets – Kredit und Kapital, 30(1), 35-51. https://doi.org/10.3790/ccm.30.1.35
Bernholz, Peter "Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China" Credit and Capital Markets – Kredit und Kapital 30.1, 1997, 35-51. https://doi.org/10.3790/ccm.30.1.35
Bernholz, Peter (1997): Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China, in: Credit and Capital Markets – Kredit und Kapital, vol. 30, iss. 1, 35-51, [online] https://doi.org/10.3790/ccm.30.1.35
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Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China

Bernholz, Peter

Credit and Capital Markets – Kredit und Kapital, Vol. 30 (1997), Iss. 1 : pp. 35–51

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/ccm.30.1.35
Language
Multiple languages
Pages
17

Author Details

Peter Bernholz, Basel

References

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Abstract

Paper Money Inflation, Prices, Gresham’s Law and Exchange Rates in Ming China

In the present article the Ming paper money inflation of 1368 - 1448 is analyzed with the intention to test whether the theory of a complete inflationary cycle is applicable not only to Western historical cases but also to this much earlier and culturally different historical episode. A complete inflationary cycle begins with the introduction of paper money to finance a budget deficit and its use by the public besides specie. It later drives the specie out of circulation (Gresham’s law). After that inflation begins and accelerates. Specie money returns and substitutes the paper money, which finally vanishes from circulation. It is shown that these and other qualitative characteristics were present during the Ming inflation

Table of Contents

Section Title Page Action Price
Peter Bernholz: Paper Money Inflation, Prices, Gresham's Law\rand Exchange Rates in Ming China 35
I. Introduction 35
II. The Four Phases of a Complete Inflationary Cycle and Their Characteristics 36
III. Historical Background: Chinese Paper Money Inflations 39
IV. The Complete Inflationary Cycle During the Ming Dynasty (1368 - 1448) 41
1. The First Two Phases of the Ming Inflationary Cycle 41
2. Phases Three and Four of the Ming Inflationary Cycle 43
V. Conclusions 48
References 49
Summary: Paper Money Inflation, Prices, Gresham's Law and Exchange Rates in Ming China 50
Zusammenfassung: Papiergeldinflation, Preise, das Gresham-Gesetz und Wechselkurse im China der Mingzeit 51
Résumé: Inflation de la monnaie fiduciaire, prix, loi de Gresham et taux de change en Chine au temps de Ming 51

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