The Monetary Transmission Mechanism in Pre-war China
When the international monetary system was on the gold standard, China was the only country adhered to the silver standard. Silver functioned as currency in China but acted as commodity in international markets. Its price experienced downturn trend from 57 cents per ounce in January 1929 to 23.38 ounces per ounce in January 1933. Then it increased to 75 cents per ounce in May 1935. Dramatic fluctu