Introduction: the problem, 491; the question of "depreciation, " 493; comparison with inconvertible paper, 494. — The theory of silver exchange, 495. — Theories of silver flow: the problem, 498; the "need for silver" analysis, 500; the balance of payments analysis, 501; the "silver a commodity" analysis, 502; Marshall's analysis, 503. — The "purchasing-power-parity" theory of silver flow, 506. — The mechanism of adjusting international balances under silver exchange, 510. — The theory of gold flow, 514. — Sectional price movements under silver exchange, 516. — Conclusion, 519.

Journal Article The Effect of Depreciated Exchange Upon Merchandise Movements Get access Choh-Ming Li Choh-Ming Li Berkeley, Calif. Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 49, Issue 3, May 1935, Pages 495–502, https://doi.org/10.2307/1883865 Published: 01 May 1935

NFLATION in China is a subject of considerable interest and serious concern to all Allied Nations, inasmuch as it might so affect the Chinese war economy as to delay considerably a large-scale counteroffensive from this vital base, thereby prolonging the war. Lack of reliable information has given rise to much speculation regarding the subject, such speculation being based largely on the superficial evidence of price movements. The conclusions thus drawn naturally have involved considerable misunderstanding of the Chinese economy. This situation is not conducive to full cooperation between China and its allies. It is essential, therefore, that an objective and factual picture of inflation within Free China should be presented.