What caused hyperinflation in China?

Between December 1941 and December 1945 the government budget deficit increased over 100-fold, and prices increased 10,000 percent. The public lost confidence in the currency, and the velocity of circulation increased, further fueling the inflation.

What are the effects of hyperinflation?

Effects of Hyperinflation That stockpiling creates shortages. Hoarding can start with durable goods, such as automobiles and washing machines. If hyperinflation continues, people hoard perishable goods, like bread and milk. These daily supplies become scarce, and more expensive, and the economy falls apart.

What caused the Chinese civil war quizlet?

Causes: (1) The overall lack of support for the Manchus (Boxer Rising, the Manchus inadequate reforms etc.) (3) Revolutionaries, b.zw. Sun Yatsen ant the ‘Revolutionary Alliance’, in China took this opportunity to revolt against the Manchu Dynasty.

Does hyperinflation cause stock market crash?

Value stocks perform better in high inflation periods and growth stocks perform better during low inflation. When inflation is on the upswing, income-oriented or high-dividend-paying stock prices generally decline. Stocks overall do seem to be more volatile during highly inflationary periods.

How does hyperinflation affect real estate?

Even if inflation is high, an oversupply of housing will bring home prices down. Interest rates and rental costs tend to go up with inflation. Business Insider explains that mortgage rates follow the same path as long-term bond yields. If mortgage rates go up too high, people won’t take out home loans.

Who suffered from hyperinflation?

Germany was already suffering from high levels of inflation due to the effects of the war and the increasing government debt. ‘Passive resistance’ meant that whilst the workers were on strike fewer industrial goods were being produced, which weakened the economy still further.

How did hyperinflation affect the Chinese Civil War?

Starving Chinese peasants during the civil war. The Civil War had a significant impact on the Chinese people. The historian Jonathan Fenby suggests that “hyperinflation [during the Chinese Civil War] undermined everyday lives and ruined tens of millions”.

What happened to the nationalist cause in China?

The vital commercial centre of Changsha fell on August 5, the port of Foochow ( Fuzhou) on August 17, and the northwestern fortress city of Lanchow ( Lanzhou) on August 28. It was clear that the end was rapidly approaching for the Nationalist cause on the mainland.

What was the result of the 1949 Chinese Civil War?

The two-decade struggle for China between the Nationalists and the Communists reached its conclusion in 1949. The year began with a Nationalist appeal to the “Big Four” (the United States, the United Kingdom, France, and the Soviet Union) to mediate a settlement with the Communists.

What was the most important cause of the downfall of nationalists?

Hsu argues that the war with Japan is the “single most important cause for the downfall of the Nationalists” and “had there been no Japanese war, the situation in China would have been very different” (Hsu, 1990: 734).