Abstract
The paper takes issue with the mainstream economic analysis of the enormous flow of silver into China in 1550–1820. First, I challenge the view that arbitrage between gold and silver in European trade with China was important except for one twenty-year spell. Next, I argue that had China imported gold, its history would have been much the same. I also dispute the idea that the persistence of the silver inflows from 1550 to 1820 implies any persistent disequilibrium, and I maintain that economic theory can easily accommodate the view that the inflow of silver into China sponsored growth in China.
Original language | English |
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Pages (from-to) | 105-131 |
Number of pages | 27 |
Journal | Open Economies Review |
Volume | 30 |
Issue number | 1 |
Early online date | 28 Aug 2018 |
DOIs | |
Publication status | Published - Feb 2019 |
Keywords
- Silver flows into China 1550–1820
- Silver/gold exchange rates
- Transaction costs in international trade
ASJC Scopus subject areas
- Economics and Econometrics