Chapter 67 guide

Why was the Exchange Stabilization Fund the second central bank of China at that time? Why are the four major families able to grab amazing wealth through legal currency? Why FX liberalization was the wrong decision at the wrong time? Why did the CCP's "financial lurking" hasten the downfall of the Chiang dynasty? Why did Chiang Kai-shek lose the currency war in the end? The legal currency reform in 1935 unified China's currency, but accelerated Japan's war of aggression against China.Once the war broke out, there was an immediate shortage of foreign exchange, and the foundation of legal currency was severely weakened.Chiang Kai-shek had to rely on British and American loans in order to stabilize the currency and persist in the War of Resistance.Britain and the United States took full advantage of Chiang Kai-shek's plight, using the foreign exchange stabilization fund as a platform and foreign exchange loans as conditions, and took away the power of the central bank in one fell swoop.

After the victory of the Anti-Japanese War, the four major families used currency means to ruthlessly plunder the wealth of the rear and occupied areas, and lost the hearts of the people.At the critical moment of economic recovery, monetary stability should have overwhelmed everything, but Song Ziwen launched a wrong monetary policy at the wrong time, which is foreign exchange liberalization, and its consequences led to hyperinflation and the collapse of legal currency credit. The golden round coupons were originally intended to clean up the mess of legal currency, but unexpectedly created an even bigger mess, which eventually ruined the Jiang family dynasty.