"Now you understand what the disadvantage of my Great Ming Treasure Notes is, right?”
Fang Yunfei swept his gaze across the crowd and said.
As expected, other than Blue Jade who had a dumbfounded expression, the other five all had solemn expressions.
Especially Zhu Yuanzhang, his face was so dark that water could drip from it.
"Kid Fang, you mean…my Great Ming Treasure Notes are worthless?”
"What…what is going on?”
After a long silence, Lee Shan Chang finally spoke.
This discovery was too terrifying.
The banknotes issued by my Ming Dynasty are actually worthless!？
If not for the fact that Fang Yuan had used such a direct example, by the time these important officials of the imperial court discovered it, it would have already caused an irreparable disaster!
"Not bad! The biggest problem with my Great Ming Treasure Notes is that they are overissued! This would inevitably lead to money being worthless in the end.”
Fang Yunfei said bitterly.
In fact, when the Ministry of Revenue issued the notes, they never paid attention to the issue of controlling the number of notes issued.
By the time the banknotes had become a disaster, the imperial court was already powerless to reverse the situation. They could only allow the banknotes to depreciate and become a piece of waste paper.
"Young Master Fang, can you explain the whole story to me in detail?”
Wu Lin stood up and said respectfully to Fang Yunfei. The way she addressed him had also changed from "Little Fang" to "Young Master Fang".
"Since Old Wu is so sincere, I'll explain it to you.”
Feeling the sincere gazes of Wu Lin and the others, Fang Yunfei suddenly felt a little vain.
Anyway, he had already told them about running away, so he didn't mind saying a little more.
"As you can see, the true value of a banknote is not in the number of strings written on it, but in how much it can buy.”
"I call the ability of how many things can be bought with each banknote 'purchasing power'!”
Fang Yunfei rolled up his sleeves and habitually wanted to write on the wall. Unfortunately, he did not have a pen in his hand.
Fortunately, Zhu Biao was prepared and handed the brush to him.
"As you can see, the banknotes issued by the Imperial Court must match the goods that can be bought on the market.”
"With more goods, there will be more banknotes. The Imperial Court needs to print more, or else it will easily lead to a deflation.”
"If there are fewer goods, there will be fewer banknotes. The Imperial Court needs to take back the excess banknotes. Otherwise, the money is worthless and will inevitably lead to inflation.”
Fang Yunfei wrote the words 'Deflation' and 'Deflation' on the wall.
Lee Shan Chang and Wu Lin immediately committed these two terms to memory.
For someone as experienced as the Crown Prince, he had long taken out a small notebook and written it down.
"Benefactor Fang, what do these two mean? What are their drawbacks?"
Zhu Biao asked.
"Good question!"
Fang Yunfei had an expression of a promising student.
"Deflation is when money is too valuable! There were only goods on the market and no banknotes, so the common people could only barter. The market will be very depressed."
Fang Yunfei pointed at the words 'Deflation' and said.
"In that case, this Deflation doesn't seem that scary.”
"That's right! At most, it would be inconvenient for the imperial court to collect taxes, so the impact would not be great.”
"Indeed! Deflation is nothing more than this."
“……”
There were whispers of discussion below.
Different from the highly developed commercial society of the later generations, the Ming Dynasty was still dominated by small-scale farmers, and each household was self-sufficient.
There had always been bartering among the people in various places.
Therefore, the future generations of countries would turn pale when they talked about the currency contraction, but it did not have much of an impact on the Ming Dynasty.
"However, what is even more terrifying than the currency is the currency.”
"You should have understood through the example just now. The so-called 'inflation', was that the imperial court issued too many banknotes, causing money to be worthless.”
Fang Yunfei immediately drew a circle on the [Deflation].
"I guess the emperor didn't think twice when he issued the notes. He really thought that he could spend as much as he printed.”
"But as you can see, if the total amount of goods remains the same or the growth rate cannot keep up with the printing speed of the banknotes, the purchasing power of each banknote will only get smaller and smaller.”
"In the end, it changed from one banknote for ten mahjong pieces to ten banknotes for one mahjong piece.”
Fang Yunfei pointed at the banknotes and mahjong on the table.
Everyone nodded in agreement.
They had seen the change in the purchasing power of the notes with their own eyes.
Zhi Wei saw that the example just now could indeed happen.
Zhu Yuanzhang blushed.
Back then, he really thought that the amount of money printed was equivalent to the amount of money given out.
"Kid Fang, is the so-called swelling that scary?”
"Why is my head so muddled?”
Lan Yu was dumbfounded.
What did Fang brat just say?
One moment it expanded, the next moment it contracted.
One moment, money was worthless, and the next moment, money was valuable again.
From His Majesty to that sour scholar Old Man Wu, everyone had expressions of having seen a ghost.
Was this more terrifying than dying in battle?
"Oh! It's understandable that you can't understand."
Fang Yunfei nodded.
Even the later generations might not be able to understand the relationship between inflation and Deflation, let alone Old Blue, an ancient military general.
"For example. After the rate of inflation, the money in your hands is just a waste paper. Are you afraid?"
"Hmm…that's indeed scary!"
Lan Yu thought for a moment and couldn't help but nod.
Not to mention anything else, eighty percent of his and his soldiers 'salaries were paid in Ming Dynasty notes.
If the notes really became a piece of waste paper, what would they eat and drink?
The emperor didn't lack hungry soldiers.
He couldn't possibly go to war on an empty stomach, right?
"Hiss…the rate of inflation is so terrifying!”
"Looks like we need to take precautions!"
"Terrifying!"
“……”
The others also sighed.
Eighty percent of their salaries were paid in banknotes.
"Benefactor, to what extent can this inflation affect my Great Ming?”
The Crown Prince asked with a frown.
He had a feeling that the evil consequences of inflation were far more than this, but his benefactor had not said it yet.
"The most serious consequence is the collapse of the country and chaos.”
…………………………………………………………………
Today's fourth update!
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It's even later. Please forgive me, readers!
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