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- Title
SILVER AND CHINESE PURCHASING POWER.
- Authors
Kreps, T. J.
- Abstract
This article presents comments of the author on T.J. Kreps' article "The Price of Silver and Chinese Purchasing Power," which appeared in the February 1934 issue of the "Quarterly Journal of Economics." Since the silver price of gold has more than doubled since 1926, one can expect a twinfold increase in the price level in those parts of China which may on a silver standard. It suggests that the silver price of commodities in the extra-Chinese world, has shown almost no net change over this period. The present falling price level in China is thus in perfect synchronization with a rise in the commodity value of silver in the outside world. The downfall of the Chinese price level is far from presenting an aberration from theoretical expectation. If there is an increase in the gold value of silver, and of Chinese exchange, due to an increase in the real value of gold, there would be no major change in silver price levels. The author says that it is wrong to imply that the real value of silver as a metal in Western markets, and the price level in those parts of China where silver is standard, are independent of one another.
- Subjects
CHINA; PURCHASING power; PRICE levels; QUANTITY theory of money; KREPS, T. J.; COST of living; ECONOMIC indicators; GOLD standard; PRICE level changes
- Publication
Quarterly Journal of Economics, 1934, Vol 48, Issue 3, p565
- ISSN
0033-5533
- Publication type
Article