“When combined with war, inflations tear apart the human community. One example is the Great Chinese Inflation of the 1930s and 1940s. Indeed, the destruction of the Chinese monetary system during this period helped Mao Zedong’s communist movement to triumph on the Chinese mainland in 1949. In the nineteenth and early twentieth centuries, Imperial and then Republican China had no central bank. The monetary system was based on a diverse network of private banks operating in the various regions of the country. While copper was widely used in coins, the primary medium of exchange was silver, and the entire Chinese economy functioned on an informal silver standard.”

http://www.thedailybell.com/editorials/34926/Richard-Ebeling-Chinas-Great-Inflation-Helped-Bring-the-Communists-to-Power/

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