ABSTRACT
Toward the end of World War II, Taiwan was subject to intense bombing by the allies and was isolated from the outside world. Production decreased, external trade was at a standstill, there was a serious shortage of commodities, and inflation had reached serious proportions. Soon after the restoration in 1945, it was found that Taiwan needed a tremendous amount of capital for rehabilitation and reconstruction. Also due to its peculiar political situation on the island, an independent financial system from mainland China was set up.
