Described in Chapter 1 of Ten Crises: The Political Economy of China's Development (1949-2020)
Initial hyper-inflation in the old republic stemmed from the silver crisis.
Post-war government re-established Chinese dynastic tradition of 'even distribution of land and tax exemption', but procrastinated on tax exemption to support industrialization.
This ameliorated the hyperinflation in the cities. "Oversupplied money was absorbed by the peasant household economy like a sponge"
Rural sector served as a vehicle for the 'soft-landing' (i.e. 'safety nets') of urban sector in case of crisis.
Transplanted "circle the city from the countryside" military strategy into the realm of economy.
National fiscal-financial system built on the rural economy to perform 'counter-cycle economic regulation'.
More hyper-inflation also occurred due to budget deficits and monetary oversupply
Military and political campaigning forcibly put down speculative behavior of urban private capital. (See San Fan Wu Fan 三反五反)