Inflation and deflation.
After Su Jing's remarks, the study room became completely quiet.
Starting from the history of currency development, we talk step by step about banknotes, and then to the possible consequences of the issuance of banknotes.
Su Jing thought that what she said was quite clear. How much they could understand was entirely up to them.
"I see. I didn't expect that the issuance of treasure banknotes would have such a problem. I didn't expect it at all."
Zhu Yuanzhang had a solemn look on his face, and he had long since given up the idea of being angry with Su Jing.
Now that he has a thorough understanding of the dangers of this banknote, the issuance of Ming Dynasty banknotes needs to be reconsidered.
"Mr. Su is really a man of heaven. Inflation and deflation, simple images, everything can't be hidden in Mr. Su's eyes."
Liu Bowen was very moved. Although he came to listen on the way, he also learned a lot.
Zhu Yuanzhang said: "It seems that the Ming Dynasty treasure banknotes cannot be issued at all."
Liu Bowen immediately said: "Your Majesty, don't be anxious. Mr. Su must have already known the advantages and disadvantages of this banknote, but he still praised it very much in his words. The old minister thought that Mr. Su might have something to say."
"besides?"
Lao Zhu was stunned for a moment, and then said: "Okay, then I'll listen again and see what else Su Jing has to say."
In the study room.
The shocked princes gradually came to their senses, but the surprise in their eyes did not disappear so easily.
"How about it, now do you feel that the danger of banknotes is really too great."
Su Jing asked several people with a smile.
Zhu Xi nodded immediately and said: "Yes, Mr. Su, I originally thought that paper money was a thing that benefited the Ming Dynasty, but now it seems that this paper money is simply a scourge."
Su Jing looked at him and said: "King Qin, everything is like this. There are advantages and disadvantages. Although the harm of improper issuance of banknotes is really great, the benefits of banknotes cannot be ignored. We cannot stop eating because of choking."
The disadvantages of paper money are great, but the advantages are obvious.
In her previous life, Su Jing knew very well that even in the era of electronic payment, banknotes still play a role that cannot be ignored.
"But, Mr. Su, the harm of issuing banknotes is so great. I really feel that the benefits are not enough for me to continue to support banknotes."
Zhu Xi shook his head and said.
His change is the biggest. At first he firmly supported banknotes, but now he firmly opposes banknotes.
Su Jing smiled and was not in a hurry to explain, because Zhu Fan had already raised his hand.
Zhu Fan said: "According to what Mr. Su said, the crisis of paper money is something that the Ming Dynasty cannot bear. But when I carefully thought about what Mr. Su said about inflation and deflation, I always felt that there was something unreasonable about it, but where exactly? It doesn’t make sense, but I can’t figure it out.”
"I know a little bit about Prince Jin's doubts. Of course, I'm not sure whether what I'm saying is what Prince Jin thinks. I'll listen to it first, okay."
Su Jing said lightly.
In Su Jing's opinion, Zhu Fan's performance was that of a true thinker. He did not blindly follow others' opinions, but carefully thought about the reasons and relationships.
"Please ask Mr. Su to clarify my doubts."
Zhu Fan immediately cupped his hands towards Su Jing.
Su Jing said: "The inflation and deflation I just mentioned are actually assumptions under an ideal model. What is an ideal model, that is, without considering other factors."
"In fact, even if we enter the era of paper money, gold and silver coins will not disappear, and the value of gold and silver will not depreciate because of the emergence of paper money."
"In this case, there will be both coinage and banknotes in the currency market, and the two will affect each other. The occurrence of inflation and deflation is no longer solely determined by banknotes."
"Currency is both money and goods, that is, commodities. Commodities have a market, and the market has an invisible hand that has the function of self-regulation."
"In actual circumstances, the impact of improper issuance of banknotes is not just as simple as an increase or depreciation of commodity prices. The balance of everything is more complicated and requires more factors to be considered."
In this explanation, Su Jing could not fully explain the changes.
This is something that many economists in the past life could not understand. Su Jing can only explain so much.
It’s just complicated anyway.
For such a huge economic system, any new thing will lead to some uncontrollable changes, which is inevitable.
"It turns out that I thought too simply."
Zhu Fan sighed: "It seems that this business matter is also a major national matter, and we must not be careless!"
As a prince who has been studying seriously since he was a child, Zhu Fan has read a lot of sages and sages, so he naturally has some thoughts of looking down on industries other than studying.
Especially the thoughts of scholars, farmers, industry and commerce have always existed deep in Zhu Fan's heart.
As for treating Su Jing, he never treated Su Jing as a businessman.
But now, after listening to such a lesson, he only felt that even if it was just a business matter, it would still have an extremely huge impact on the country.
"Mr. Su, should I use this banknote?"
Zhu Di asked Su Jing.
There are advantages and disadvantages. These are all theoretical. In practice, should they be used or not?
The pragmatic Zhu Di is very direct.
"King Yan, do you think we should use banknotes?"
Su Jing asked rhetorically.
Zhu Di immediately replied: "The student feels that it can be used or not. If it is not used, then it is to continue to maintain the currency status of gold and silver coins. It is still feasible for the Ming Dynasty. If it is used, then it must be careful and restrained to prevent the issuance of paper money. It will have a bad impact on Daming."
Obsessed with leading troops to fight all day long, Zhu Di's character is decisive.
Just do things as they should be done, how to deal with them if you do them, and how to deal with them if you don't do them. What Zhu Di said may be wrong, but he won't be too entangled.
"Okay, this guy, Fourth, looks like me!"
Zhu Yuanzhang was also quite happy after hearing Zhu Di's words.
Liu Bowen nodded and said: "The King of Yan is decisive, and he will definitely be entrusted with important responsibilities in the future!"
At this moment, neither Lao Zhu nor Liu Bowen thought that Zhu Di might become the next emperor.
In other words, the entire Ming Dynasty, from the emperor down to the common people.
Everyone believed that the only emperor after Lao Zhu could be Zhu Biao.
No matter how outstanding the other princes were, there was no way they could threaten Zhu Biao's status.
"King Yan is quite interesting, he asked me this question again."
Su Jing said with a smile: "But King Yan is right, it doesn't matter whether it is used or not. After all, based on the current situation of the Ming Dynasty, even if something goes wrong, the impact will be limited."
"Master Su, what do you mean?"
Zhu Biao asked impatiently.
As the prince, he was very concerned about the issues after the issuance of this banknote. After all, it was related to the foundation of the Ming Dynasty.
Su Jing turned to look at Zhu Biao and said: "Prince, think about it, in the Ming Dynasty, the currency is mainly gold, silver, copper and other coins, but in reality? Most of the poor people in the Ming Dynasty still rely on many things for their daily transactions. There’s food.”
"Grain is a real thing. As the saying goes, if you have grain in your hand, you won't panic. If treasure money is really issued, do you think the people will exchange the grain they have worked so hard for for a thin piece of paper? "
"The first place where banknotes circulated must be in the hands of merchants, and now the merchants of the Ming Dynasty are just like that."
Su Jing directly and briefly analyzed the actual situation of Ming Dynasty. He was not talking nonsense.
When Su Jing was studying history in his previous life, he still remembered Lao Zhu's issuance of Ming Dynasty treasure banknotes.
Although it was not the third year of Hongwu, in the end they broke up on bad terms and just disappeared.
There is definitely an impact, but it's not that big.
"So Master Su, what do you mean, is it necessary to issue these banknotes?"
Zhu Biao asked again.
Su Jing replied: "Of course it is necessary! And it is necessary!"
What Su Jing said was decisive and firm.
However, this made everyone who had just heard about the disadvantages of paper money a little confused.
What does it mean?
Are you kidding us?
"Master Su, please speak clearly."
Zhu Biao said to Su Jing that he had stayed with Su Jing for a long time and understood that Su Jing must have something to say.
"Don't worry, you have to take your words one bite at a time. My lesson today is not over yet."
Su Jing picked up the tea and tasted it carefully.
He is the teacher now. Even if the person in the audience is either the prince or the vassal king, he still has to wait here obediently.
"No, what are you kidding about? Why don't you just be neat?"
Lao Zhu outside the door was a little angry. He felt half-heartedly after hearing this. That was really bad.
Liu Bowen said: "Your Majesty, Mr. Su is giving a lecture to His Royal Highness the Crown Prince and others. If he talks about it all at once, the effect will not be good."
"It is Mr. Su's way of teaching that follows the instructions and allows the students to think for themselves and come up with the answers. This is Mr. Su's teaching method. I feel that Mr. Su's teaching method is what a real teacher should do."
Zhu Yuanzhang snorted coldly and said: "Bo Wen, you know how to say good things to Su Jing."
Liu Bowen replied: "Your Majesty, the old minister is just discussing the matter. Moreover, your majesty has also seen the changes in His Highness King Qin and others, which is enough to prove that the old minister is right."
Liu Bowen was also the prince's tutor appointed by Zhu Yuanzhang. While teaching Zhu Biao, he naturally also taught Zhu Fang and other princes together.
Therefore, Liu Bowen knew very well the situation of each of these princes. Do they like reading or not? How are they studying and how are they thinking? What do you like and what is your personality like?
Liu Bowen knew this very well.
In this class, Liu Bowen was surprised by all the prince's performances he saw.
Every prince has reached a higher level than before.
Liu Bowen had also heard about Su Jing teaching the princes individually before.
"What you said, Bowen, is correct. This kid Su Jing does have a way of being a teacher."
Zhu Yuanzhang nodded, and a different idea suddenly appeared in his heart.
But he didn't say much. As an emperor, his thoughts must be deep enough.
"Okay, let's continue to talk about why I insist that banknotes must be issued."
Su Jing put down the tea cup and said calmly: "First of all, the first point to be sure is that it is necessary for the Ming Dynasty to issue banknotes, but the time is not now."
"So when is the right time to release it?"
Zhu Xi couldn't help but ask.
Su Jing smiled and said: "His Royal Highness King Qin, I just said that the issuance of banknotes, apart from the court, should be the first to be used by merchants. Because merchants have frequent transactions, banknotes can be carried more conveniently, right?"
Zhu Xi nodded.
Su Jing continued: "However, the business of the Ming Dynasty is actually not developed now. After all, it has just been a few years since the founding of the country. There is a lot of waste waiting to be developed. There is also a lot of land to be reclaimed. We can open up wasteland to grow food, increase food production, and thus increase the population. , this is the main priority for people’s livelihood in the current Ming Dynasty, right?”
"Yes, Master Su, my father means the same thing."
Zhu Biao replied: "With years of wars, people displaced, and land abandoned, the population of the Ming Dynasty is actually much smaller than when the Yuan Dynasty was at its peak."
Su Jing smiled and said: "But as the population continues to increase, the land will eventually be reclaimed. When there are more people, the exchanges and needs between people will increase. The number of businessmen will naturally increase, and commerce will definitely increase." Prosperity ensues.”
"At that time, paper money will become a product that conforms to the trend of the times and better promotes the development of the Ming Dynasty's economy."
Zhu Ming suddenly realized: "So that's the case, so the best time to issue these banknotes must be at least ten or twenty years later, right?"
"It's possible. It's also possible to postpone it further."
Su Jing said lightly.
"I see, I am indeed a little impatient."
Zhu Yuanzhang said to himself.
Liu Bowen said: "Mr. Su is indeed far-sighted, but I believe that if business in the Ming Dynasty wants to flourish, it must rely on Mr. Su."
Both Lao Zhu and Liu Bowen knew Su Jing's ability as a businessman.
With the ability of a businessman and such advanced economic thinking, Liu Bowen believed that only Su Jing could do this well.
Zhu Yuanzhang said calmly: "No hurry, no hurry."
Liu Bowen stopped talking. He realized that he had just said too much.
Su Jing is not a prince, there are some things that are destined to be impossible for Su Jing to control.
From the matter of Zhu Yuanzhang's enfeoffment of vassal kings, Liu Bowen had already seen Lao Zhu's thoughts.
In this big world, Lao Zhu will only let his descendants take control.
The heroes who hold high positions now will eventually be replaced in the future.
There is no way, this is the world!
Zhu Di raised his hand and said: "Mr. Su, but even so, the shortcomings of paper money still exist. According to what Mr. Su said before, the more this business develops, once the harm of paper money appears, won't it affect a wider range and cause Is the damage more widespread?"
"Yes, Mr. Su, if the shortcomings of this banknote are not solved, it will be difficult to issue it."
Zhu Fan also echoed.
Although the others did not speak, they all looked at Su Jing.
Obviously, they also want to know what to do?
Su Jing smiled faintly: "It seems there is a very simple truth that you have always ignored. Do you understand that water can carry a boat and also capsize it?"
"Improper issuance of currency may cause inflation or deflation, but what if it is issued properly? Can it reversely regulate the Ming Dynasty's economy?"
(End of chapter)
