Parallel But Not Equal:A Study Of The Monetary System In Early Qing Dynasty (1644-1795)

This dissertation focuses on the monetary system and monetary policy during the early Qing Dynasty, its main content, manifestations and inherent contradictions and its long-term impact upon social and economic entities.Based on a detailed reference to previous findings and frontier researchs, and thorough detailed historical materials, the article argues that the core of the monetary system the silver and copper composite standard that is characterized by the parallel use of silver and official coppers that was geared for an unsuccessful shift to a modern currency system dependent on silver as the centre. It is it’s concurrent rather than parallel form that differentiate it from its western counterparts. It is also the entry point into closer insight into how monetary system functioned during the early Qing.The system features prominently in its lack of self-adjusted exchange rate mechanism, concurrent but unparallel asymmetry, flexibility and unstability as well as multi-layerd market segmentations, which leads to its complicated connotations. The following conclusions are achieved through a detailed description of its characteristics and analysis of its cause.Various ideas co-exist during the whole process, like intervention (but not interventionism), unbridled implementations (but not laissez-fair) or a hybrid of the two, which gave rise to multiple contradictions on ought-to-be and to be levels.The issue of exchange rate between silver and official coppers and copper price as well as private minting and melting co-exist but belonged to the respective spheres. This article argues, on both theoretical and factual level, that within the established institutional conditions, a very policy was far from feasible that didn’t contradict the established regulations and systems and also stabilize silver exchange rate, flatten copper price and eliminate counterfeiting and private melting.Several unparallel appeared during its implementation:It is the state’s ambition to sustain the exchange rate of 1000:1 which is impossible to live up to. Bringing benefits to people feature insignificantly against caring for the state affairs though theoretically they didn’t run counter to each other.There is a double Gresham’s Law existed within the silver and copper composite standard, coupled with people-centered Confucius values, made it impossible for the silver and copper composite standard to evolve silver standard or even beyond. Besides, the development of market economy made it less likely to regenerate to copper standard or a lower form.The Horizontal regional segmentation and vertical market segmentation During the circulation of money made it unlikely for monetary stock and monetary flow to be calculated together. During this time, a unified money and competing money exist simultaneously and lowered the transaction costs. However on account of the individual bounded rationality, opportunism as information asymmetry as well as the uncertainty of the policy and the sophistication of the system, followed by the subsequent increased segmentation and the internally and externally-imposed impact and concussion,these non-equilibrium development eventually erode the function of the economic social Entity of the Qing empire.