Many observers are treating China’s plan for a central bank digital currency (CBDC) as a strictly progressive, technical move that other nations should emulate.  The United States, in particular, is concerned that China already has a large head start, which may threaten the dollar’s dominance as a…

Chinese monetary history, communism, government debt financing, inflationary spiral, The Knowledge Problem

The history of China’s banking system in the first half of the 20th century offers powerful insights into the conduct of monetary policy and the consequences of government intrusion into banking and monetary institutions that are well worth considering today.  Monetary economists and monetary historians would do…