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A Multi-Layer System and Its Features: Reconceptualizing the Monetary Regime of Late Qing and Modern China

Author

Listed:
  • Hongzhong Yan

    (School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Zhijian Qiao

    (Department of History, Amherst College, Amherst, MA 01002, USA)

  • Chen Xu

    (School of Economics, Minzu University of China, Beijing 100081, China)

Abstract

This essay aims to reconceptualize the monetary regime of late Qing and modern China as a multilayer system of currencies and examine the features and logics of its operation from the 16th century to early 20th century. We argue that this system consists of a variety of silver and copper currencies, each occupying a particular layer in the structure and each satisfying a specific market demand. Analyzing the production and circulation of copper and silver currencies, we first trace their evolution from the Qing to the Republican era and demonstrate the multi-layer currency structure persisted in China across the modernizing changes that took place at the end of the 19th century. Second, using data drawn from gazetteers, this essay adopts a quantitative approach to empirically examine the mechanism and speed of interactions between the different layers of the monetary market and reveal the operational mechanism of the multi-layer system. We suggest that this multi-layer system, while bringing some efficiency loss, also constituted an effective institutional arrangement that helped to ensure the stability of the Chinese economy in tumultuous times.

Suggested Citation

  • Hongzhong Yan & Zhijian Qiao & Chen Xu, 2018. "A Multi-Layer System and Its Features: Reconceptualizing the Monetary Regime of Late Qing and Modern China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 13(3), pages 436-457, September.
    • Handle: RePEc:fec:journl:v:13:y:2018:i:3:p:436-457
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-007-018-0021-7
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    Cited by:

    1. Nogues-Marco, Pilar & Esteves, Rui, 2019. "Monetary Systems and the Global Balance-of-Payments Adjustment in the Pre-Gold Standard Period, 1700-1870," CEPR Discussion Papers 13652, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    late Qing China; modern China; monetary system; market hierarchy; exchange rate; silver coins; copper dollars;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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