An Analysis Of The Phenomenon Of Hot Money After The Victory Of The Anti-Japanese War

After the victory of Anti Japanese War, serious economic problems emerged in China. Inflation was becoming seriously, hot money could be seen everywhere in the market. The economic market became more and more chaotic. Early in the period of Anti Japanese War, the market was filled with a huge amount of hot money. After the victory of war, hot money has not been effectively resolved, instead, the national government unconscious behavior made the matter become more severe. Rising hot money had closed ties with the political and economic situation at that time. The national government tried every means to solve this problem, however, the opposite of what one wants. The economic situation continued to deteriorate, a direct threat to the rule of the National Government. After the war, the KMT issued a large amount of paper money. Faced with the grim situation of the Civil War, the of paper money was far from the normal market needs. Meanwhile, business need to resume development, a large number of funds exceeded the market demand hot money, caused a great disturbance in the market. Hot money flowed everywhere, where profitable to run to where. Gold, securities, foreign currency, goods were all showing a thriving trend. But this boom was pathological and short, speculators used hot money to quickly get huge profits. Speculation in the financial market was unusually hot, but in the end it left on the market economic devastation. Economic instability, political difficulties, the daily production and life were greatly affected, a serious threat to the survival of the people. The KMT also realized that if this situation continues to develop, extremely detrimental to their rule. While the hot money caused trouble, the national government also made serious efforts to strive to control the situation and continue to maintain rule. However, the national government measures often minor, solve the problem radically. At last, the economy was collapsed, terminated the Kuomintang's rule over the mainland.