Background
Tsiang, Sho-Chieh was born on June 27, 1918 in Shanghai, China. Came to the United States, 1949. Son of Tso Ping and Shu-Chia (Chang) Tsiang.
Tsiang, Sho-Chieh was born on June 27, 1918 in Shanghai, China. Came to the United States, 1949. Son of Tso Ping and Shu-Chia (Chang) Tsiang.
Bachelor of Science in Economics, London School of Economics and Political Science, 1941. Doctor of Philosophy in Economics, 1945. Doctor of Science in Economics, London University, 1975.
Economics, Central Bank China, 1945-1946. Professor of Economics, National University Peking, 1946-1948. Professor of Economics, National Taiwan University, 1948-1949. Economics, International Monetary Fund, 60. Professor of Economics, University Rochester, New York, 1960-1969. Consultant, United Nations Secretariat, 1963-4. Visiting Fellow, Jesus College Oxford, 1966-1967. Professor of Economics, Cornell University, 1969-1985. Rockefeller Professor, University Philippines, 1972-1973. Visiting Fellow, Nuffield College Oxford, 1976-1977. Visiting Lector, Institute, Institution Advanced Studies, Vienna, 1982, Keio University, Tokyo, 1984. President, Dhung-Hua Institution Economics Research, Taipei, Taiwan, Republic China, Professor Emeritus, Cornell University, since 1985. Editorial Board, American Economic Review,
Demonstrated in 1943 that Keynes’s theory of speculative demand for money is really a theory of speculative arbitrage between short-term financial assets and long-term bonds, and that such speculation does not render the entire interest structure inflexible, but merely makes the long-term rate less flexible that the short-term rate, thus shifting the whole burden of adjustment to the latter. Later (1956 and 1980) exposed the logical defect of the Keynesian liquidity preference theory due to Keynes’s self-admitted neglect of the ‘demand for finance’, and demonstrated that the liquidity preference and loanable funds theories are reconcilable when the former’s neglect of the demand for finance is mended. Other contributions include the formulation of a theory of precautionary money demand on the basis of inventory
theory.
Critical examination of meanvariance analysis of asset demand for money. The first comprehensive theory on the forward exchange rate that takes into account all three categories of operations. Hedging, covered interest arbitrage, and speculation.
The construction of a theory on foreign exchange speculation as well as a theory on international capital flows including transient portfolio reallocations in addition to sustainable flows. Criticisms of modern monetary theory of the balance of payments, and of the indiscriminate application of Walras’ law to monetary analysis: and application of modified Markov chain analysis to money supply determination. On the practical policy side, formulated a theoretical model of economic take-off for a poor developing country, and helped to apply this model successfully through advisory work to the government of Taiwan, which has developed the nation into a remarkable paradigm of rapid and self-sustained economic growth.
Fellow Royal Economic Society. Member American Economics Association (editor 1973-1976).
Married Hsi-Tsin Ma, November 17, 1947. Children: Katherine, Christina, Grace.