Abstract: Focusing on the theory of industrialization in agricultural countries, Professor Peikang Chang analyzed the causes and effects of inflations and their solutions at different stages. The core lies in that finance has to keep the prices stable, so that it can better support the industrialization. During this process, the role of agriculture would be ignored now and then, therefore the inflation pressure could be raised; while agriculture may then be considered as the cause of inflation. Thus the financial theory of Professor Peikang Chang can be illustrated as: only if the improvement of agricultural productivity is stressed, can the pressure of inflation be released and the process of industrialization be quickened. This theory still applies to the current situations.

Key words: industrialization; agriculture; inflation; finance; Peikang Chang