By Hu Ji Chuang
The book's illuminating evidence and profound research demonstrate the noteworthy achievements in historical China'seconomic concept, giving it its due within the background of global monetary suggestion.
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Additional info for A Concise History Of Chinese Economic Thought
At least two shortcomings can be pointed out here. In the first place, he regarded the change in the standard unit of money as the only way of remedying the discrepancy between money and commodity price. This is a rather one-sided view, for many factors can cause such a discrepancy. If such a discrepancy were brought about by natural disasters, for example, it would have nothing to do with the standard of money. Further, he seems to have overlooked the disorders resulting from the change of a standard 11 Karl Marx, Capital, vol.
Even more interesting is the attention he paid to the influence of the market as a guiding force of man's productive activities. Bearing his general view on prices in mind will help us understand his price policy, or more accurately, his policy on grain prices. He held that the movement of grain prices must be placed under the guidance of the state, and fluctuations should be kept within a certain range beneficial to both production and circulation. His wellknown saying on the subject runs: "The selling price of grain will cause harm to the farmers if it falls to twenty and cause harm to traders if it rises to ninety.
23 A CONCISE HISTORY OF CHINESE ECONOMIC THOUGHT people feel contented with their own trade, and so bring about a steady supply of occupational labour power. (d) Once an atmosphere of specialization was created, a favourable social environment for technical education would come into existence. At the same time, a favourable condition for the reproduction of labour power of the same trade would take shape. However, Guan Zhong's view was much limited by his time. He looked upon labour power fixed within each kind of occupation as an unmixed blessing and hence as unquestionable wisdom.