China during the Great Depression: Market, State, and the World Economy, 1929-1937

Harvard East Asian Monographs #294

by Tomoko Shiroyama

The Great Depression was a global every economy linked to international financial and commodity markets suffered. The aim of this book is not merely to show that China could not escape the consequences of drastic declines in financial flows and trade but also to offer a new perspective for understanding modern Chinese history. The Great Depression was a watershed in modern China. China was the only country on the silver standard in an international monetary system dominated by the gold standard. Fluctuations in international silver prices undermined China’s monetary system and destabilized its economy. In response to severe deflation, the state shifted its position toward the market from laissez faire to committed intervention. Establishing a new monetary system, with a different foreign-exchange standard, required deliberate government management; ultimately the process of economic recovery and monetary change politicized the entire Chinese economy. By analyzing the impact of the slump and the process of recovery, this book examines the transformation of state-market relations in light of the linkages between the Chinese and the world economy.

Genres: Economics

350 pages, Hardcover

Published March 1, 2008

Reviews

[Anurag · Rating 5 out of 5]

An excellent account and a fresh point of view of the political economy of China at the time of depression. There are many issues in Chinese economy that an external observer is likely to miss. The author views a system of guanli (fixed dividends) and explains why equity had historically been a less accepted idea in China. There are many more insights from historical documents that Shiroyama brings to those who don't understand the Chinese language. A highly recommended book on China.