1971•Journal of Political EconomyRequires access

Hyperinflation and the Dynamics of the Demand for Money in China, 1945-1949

Teh‐wei Hu

Abstract

This paper is to study the demand for money during the Chinese inflation of 1945-49. Based on the Chinese experience, the results confirm the hypothesis that during hyperinflation the expected rate of change in prices is the most important variable in the demand function for money. The estimated value of the coefficient of cash balances adjustment is close to one. Thus, the assumption that the desired level of real cash balances tends to equal the actual level during hyperinflation is supported.

About this research paper

What this paper is about

Why it matters

OpenAlex reports 20 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Hyperinflation, Economics, Demand for money, Inflation (cosmology), Velocity of money, Monetary economics, Cash, Demand curve