sidney

China's Latest Hunting Trip

Lets set the story straight on China and its so called Silver standard. China didn't avoid the great depression because it repeated the mistakes of the Europeans in the 1920's IE it hyper inflated instead of acting in fear of repeated hyperinflation due to unsound money policies of the 20's.
The Republic of China went through the worst inflation 1948-49. In 1947, the highest denomination was 50,000 yuan. By mid-1948, the highest denomination was 180,000,000 yuan. The 1948 currency reform replaced the yuan by the gold yuan at an exchange rate of 1 gold yuan = 3,000,000 yuan. In less than 1 year, the highest denomination was 10,000,000 gold yuan. In the final days of the civil war, the Silver Yuan was briefly introduced at the rate of 500,000,000 Gold Yuan. Meanwhile the highest denomination issued by a regional bank was 6,000,000,000 yuan (issued by XinJiang Provincial Bank in 1949). After the renminbi was instituted by the new communist government, hyperinflation ceased with a revaluation of 1:10,000 old Renminbi in 1955.
Which Silver standard were you referring to? And how is hyper inflation any better than a great depression?