Deciphering the Chinese Economic Miracle: The Resolution of an Age-Old Economists’ Debate — and its Central Role in Rapid Economic Development

We offer an account of China’s unparalleled economic rise by considering evidence on public banks and their role in decentralizing the resource allocation task a growing economy. Chinese banking history since post-Mao reforms reveals ingenious integration local policymakers Currency (public money supply) Banking School (decentralized creation) policy recommendations previously thought incompatible, resulting social democracy with characteristics. Our theoretical historical discussions insights into constructive quantitative bank easing development.