Silver Points, Silver Flows, and the Measure of Chinese Financial Integration / David S. Jacks, Se Yan, Liuyan Zhao.

Format:

Book

Author/Creator:

Jacks, David S.

Contributor:

National Bureau of Economic Research.

Yan, Se.

Zhao, Liuyan.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22747.

NBER working paper series no. w22747

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

To what degree were Chinese financial markets integrated with the rest of the world prior to the 1949 Revolution and to what extent was the Chinese foreign exchange market efficient during this period? We estimate silver points for the Shanghai market from 1905 to 1933 to answer these questions. Our inferred measures are small in value, favorably match measured costs of the silver trade derived from contemporary accounts, and fare well in the comparison to estimates of trans-Atlantic gold points. This leads to the conclusion that the degree of Chinese financial market integration was substantial. However, during and immediately after World War I, our estimates of the silver points increased appreciably, foreshadowing the collapse of China's linkages to world financial markets beginning in the 1930s.

Notes:

Print version record

October 2016.