The Efficiency of the Chinese Silver Standard, 1920-33

46 Pages Posted: 16 Jun 2020 Last revised: 14 May 2021

See all articles by Nuno Pedro G. Palma

Nuno Pedro G. Palma

University of Manchester

Liuyan Zhao

Peking University - School of Economics

Date Written: June 2020

Abstract

We test for integration of financial markets in China during 1920-1933 using a new dataset of domestic exchange rates. Our data concerns tael-denominated telegraphic transfers between Shanghai and nine other cities. We find that Chinese financial markets, as measured by the efficiency of silver-point arbitrage, were highly integrated among major commercial hubs in north and central China, but there was a lower level of integration for more remote cities in the south. Our paper presents the first comprehensive assessment of the efficiency of the Chinese silver standard, and contributes to a revaluation of market performance during pre-communist China.

JEL Classification: N15, N25

Suggested Citation

Palma, Nuno Pedro G. and Zhao, Liuyan, The Efficiency of the Chinese Silver Standard, 1920-33 (June 2020). CEPR Discussion Paper No. DP14860, Available at SSRN: https://ssrn.com/abstract=3628180

Nuno Pedro G. Palma (Contact Author)

University of Manchester ( email )

Oxford Road
Manchester, N/A M13 9PL
United Kingdom

Liuyan Zhao

Peking University - School of Economics ( email )

Beijing
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
131
PlumX Metrics