Chapter 76 guide

Why did the anti-Japanese base areas lose the right to issue currency before the "Southern Anhui Incident"? Why can the "Beihai Coin" of "price standard" be successful? Why can the RMB beat hyperinflation? Why must China repay the foreign debt of the Soviet Union as soon as possible? As early as during the War of Resistance Against Japan, the base area started the financial innovation of issuing currency with "material reserves". This currency maintained the stability of currency value and price without gold, silver and foreign exchange as reserves. This was widely used in the world at that time It is shocking when the gold reserves are used to issue currency.The monetary practice of the Communist Party of China is far more avant-garde than the monetary theory of the West.More importantly, the feeling of hands-on practice is not at the same level as theoretical discussions on paper.

Zhang Yuyan, a famous financial scholar, once commented on the currency practice in the anti-Japanese base areas and liberated areas: “We are not surprised to find that, despite the differences in scale and complexity, today people talk about dollar hegemony, the creation of the euro and the expansion of the euro zone, financial liberalization, Currency wars and the internationalization of the renminbi were encountered, discussed, and handled beautifully by the former border region governments, especially bank governors. If one of the biggest challenges facing China today comes from the monetary and financial fields, then dozens of The wonderful history of the communists in the base area of ​​years ago who bravely practiced, accumulated experience, used laws, and scientifically summarized may be able to tell us a lot. This especially includes those such as the theory of seigniorage and the closely related "circulation domain" theory and Inflation Theory."

The birth of the renminbi symbolizes the complete unification of the Chinese currency.The reason why the value of the RMB can be stabilized and hyperinflation can be effectively curbed is not only the subjective reason of effective measures, but also the objective factor is that the Chinese economy has achieved four major balances in a very short period of time: budget balance, broken The root of inflation; the balance of money and cashiers, which stabilizes the source of currency stability; the balance of material supply and demand, copying the bottom of speculative forces; the balance of foreign exchange in and out, and the road to currency panic.

The renminbi is not pegged to any foreign currency, which fundamentally eliminates the possibility of foreign capital forces getting involved in China's financial system.The RMB, which is issued completely independently, firmly guards China's financial high frontier.