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Multiple Regime Shifts and Multiple Ends of the Taiwanese Hyperinflation, 1945‐1953

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  • Richard C. K. Burdekin
  • Hsin‐Hui I. H. Whited

Abstract

We reexamine the behavior of money growth, inflation, and real money balances in post‐World War II Taiwan. Our results suggest that the importance of the June 1949 reform package has been overstated. The empirical work reveals an extended period of instability that begins several months prior to the June 1949 announcements and continues until early 1950. This implies that stabilization was achieved only gradually. We also point to the importance of two high‐interest deposit programs—introduced in May 1949 and March 1950—in helping account for the Taiwanese authorities' ability to end the inflationary spiral.

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  • Richard C. K. Burdekin & Hsin‐Hui I. H. Whited, 2001. "Multiple Regime Shifts and Multiple Ends of the Taiwanese Hyperinflation, 1945‐1953," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 77-91, July.
    • Handle: RePEc:wly:soecon:v:68:y:2001:i:1:p:77-91
    DOI: 10.1002/j.2325-8012.2001.tb00398.x
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    References listed on IDEAS

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    1. Burdekin, Richard C K & Siklos, Pierre L, 1999. "Exchange Rate Regimes and Shifts in Inflation Persistence: Does Nothing Else Matter?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(2), pages 235-247, May.
    2. Krugman, Paul, 1979. "A Model of Balance-of-Payments Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 11(3), pages 311-325, August.
    3. Amartya Lahiri & Carlos A. Vegh, 2000. "Delaying the Inevitable: Optimal Interest Rate Policy and BOP Crises," NBER Working Papers 7734, National Bureau of Economic Research, Inc.
    4. Pierre L. Siklos (ed.), 1995. "Great Inflations of the 20th Century," Books, Edward Elgar Publishing, number 546.
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