Colin D. Campbell

Hyperinflation in China, 1937-49

T ITE unusual monetary developments that took place in China from 1937 to 1949 may prove instructive to Western economists. The period extends from the beginning of the Japanese invasion to the first year of Communist control of the mainland. This monetary experience generally supports our theories. However, events in China suggest a modification of the widely accepted principle that hyperinflation tends to drive currency out of use. Although rapid inflation lasted a long time, the various Chinese currencies served as media of exchange during the entire period.