PRICE STABILITY AND DEVELOPMENT IN MAINLAND CHINA (1951-63).

This paper discusses the stability of prices and the condition of economic development in Mainland China from 1951 to 1963. Information is provided on the extent of inflation since 1951 and its significance to the economy of the country. The government has two basic approach form maintaining a balance between aggregate supply and demand on the consumers' good market. The urban wage bill and state and co-operative purchases of farm products are two principal sources of purchasing power over which the authorities exercise control. Consumer taxes are the most important measure for closing the inflationary gap.