%A Hongzhong Yan, Zhijian Qiao, Chen Xu %T A Multi-Layer System and Its Features: Reconceptualizing the Monetary Regime of Late Qing and Modern China %0 Journal Article %D 2018 %J Front. Econ. China %J Frontiers of Economics in China %@ 1673-3444 %R 10.3868/s060-007-018-0021-7 %P 436-457 %V 13 %N 3 %U {https://journal.hep.com.cn/fec/EN/10.3868/s060-007-018-0021-7 %8 2018-09-15 %X

This essay aims to reconceptualize the monetary regime of late Qing and modern China as a multilayer system of currencies and examine the features and logics of its operation from the 16th century to early 20th century. We argue that this system consists of a variety of silver and copper currencies, each occupying a particular layer in the structure and each satisfying a specific market demand. Analyzing the production and circulation of copper and silver currencies, we first trace their evolution from the Qing to the Republican era and demonstrate the multi-layer currency structure persisted in China across the modernizing changes that took place at the end of the 19th century. Second, using data drawn from gazetteers, this essay adopts a quantitative approach to empirically examine the mechanism and speed of interactions between the different layers of the monetary market and reveal the operational mechanism of the multi-layer system. We suggest that this multi-layer system, while bringing some efficiency loss, also constituted an effective institutional arrangement that helped to ensure the stability of the Chinese economy in tumultuous times.