ABSTRACT
In the twelve years from the start of the Sino-Japanese War to May 1949, the reactionary KMT government increased the currency issue by more than 140 million times. In the early period of the People's Republic, the remnant KMT elements and bourgeoisie again engaged in massive speculation, price manipulation, and sabotage. As early as March 1950, prices had been stabilized all over the country and the inflationary spiral lasting for more than ten years under the reactionary rule of the KMT was arrested. A sound, stable, and balanced national budget is an important condition for the safeguarding of currency stability. In December 1963, when the economy was fully recovered, Liu Shao-ch'i repeatedly raised the reactionary demand for a general increase in prices and a decrease in currency value. Meanwhile, market management was strengthened, and prices and currency value stabilized.
