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An Uncompleted Banking and Financial Reform

In: The China Development Model

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  • Dominique Rambures

Abstract

Money is a commodity unlike any other. It is the only one which can be traded against all others. Therefore, money not only has an economic function, but also social, political, institutional, even emotional ones too. The growing monetization of an economy is a form of rationalization of the economy and a strong integration factor. The monetary regime is a very accurate sign of the way a society is operating. From a historical point of view, money and credit have always been based on a highly centralized state, a strong bureaucracy and a legal framework. Under Mao’s reign, money played a very limited role and was stricto senso restricted to the function of a currency veil; that is, a means of payment.

Suggested Citation

  • Dominique Rambures, 2015. "An Uncompleted Banking and Financial Reform," Palgrave Macmillan Books, in: The China Development Model, chapter 4, pages 71-87, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-46549-8_5
    DOI: 10.1057/9781137465498_5
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