"Every perception is to some degree an act of creation, and every act of memory is to some degree an act of imagination."

-- Gerald Edelman, Second Nature: Brain Science and Human Knowledge
8 China’s Lessons and Its Ways of Operating10 China’s Lessons and Its Ways of OperatingChina’s Lessons and Its Ways of OperatingChapter 6: The Big Cycle of China and Its Currency2020-10-09JournalNo alt text provided for this image The charts below show the value of Chinese currency in dollar terms and in gold terms since 1920, plus the inflation and growth rates over this period.  The history for the currency rates is so fragmented before that that it is not worth referencing.  As you can see, there were two devaluations, one at the setting up of the new exchange rate in 1948, and a series of devaluations from 1980 until the early 1990s, largely aimed at supporting exporters and managing current account deficits,\[11\] which led to the very high inflation during that period.  As shown, growth was relatively fast and erratic until around 1978, then fast and much less erratic since 1978 until the recent brief plunge due to COVID-19. Continue reading…