Money supply and the price mechanism

Since the nineteenth century, China’s economy has become increasingly integrated into the world market while at the same time experiencing large economic volatility and a lagging development of its institutional structure. Against this background, research into prices and wages has attracted much interest. For example, prices and wages have been used to estimate the economic development of a traditional society (e.g. Allen et al. 2011, Yan 2009, Wang Yuru 1997: 146–69), or to measure market integration (e.g. Keller and Shiue 2007).