"How do you know that if you print too much money, it will lead to light money and heavy things?"

Li Yang asked a question that was extremely curious about.

Dong Yi looked surprised, as if the question Li Yang asked was a very idiotic question, saying: "This... Since ancient times, more money will cause money to be less important than things. Thousands of years ago, shells were used as currency during the Shang Dynasty and exchanged goods, so they were also used in large quantities until the Western Zhou Dynasty. But later, someone found huge sea shells on the beach, so the number of shells increased sharply, which caused money to be less important than things. Therefore, the currency could not be issued more and should be maintained in a balance with things."

Li Yang suddenly realized and felt even more that this was a talent.

This person was able to use the excessive issuance of shell coins in the Shang Dynasty, which triggered inflation and summarized the principle of currency deflation and inflation. Isn’t this a talent, what is it?

You know, this is the Qin Dynasty.

At this time, there was basically no theory of inflation.

At that moment, Li Yang asked again: "How can we maintain the balance between currency and prices?"

Dong Yi thought for a moment and said, "This is simple. If the money is light, it will be sealed, and if the things are light, it will be distributed."

"good!"

When Li Yang heard this, he shouted yes and praised: "Doctor Dong is actually a good scholar in economics and finance. He is a stubborn job in the position of a doctor."

When everyone heard this, they didn't understand why Li Yang was so optimistic about Dong Yi.

Even Dong Yi did not expect that Li Yang would look down on him so highly that he would actually discuss the position of a doctor, and he thought it was a waste of talent.

Of course, only Li Yang knew how rare Dong Yizhi was in this era.

Money is light, and money is light, and things are light...

Isn’t this saying that if you print too much money, you have to seal the money you print too much to reduce the currency circulating in society?

Once the currency in circulation is small, the money will naturally become heavier.

If things are lighter, it means that there are fewer currencies circulating in society. At this time, more currencies will be issued. With more currencies circulating in this way, the balance between currency and goods can be achieved.

To put it bluntly, this is the foundation of monetary science in later generations!

At this moment, Li Yang said to Fusu: "The eldest son, it is very important to issue paper money for the long-term plan of the Qin Dynasty."

Seeing that Li Yang had said this, and after listening to Dong Yi's analysis and explanation, Fusu felt that issuing paper money did not seem to be as ridiculous as imagined. So he pondered for a moment and nodded and said, "Okay, as long as the Taifu thinks it is feasible to issue paper money, that is feasible."

"The eldest son is wise!"

Li Yang was overjoyed and was very moved, because it was obvious that Fusu did not feel the effect of paper money. The reason why he agreed was just because of his trust in Li Yang.

At this time, Li Yang said again: "Paper currency is the basis of credit currency, which is the credit of the country. If paper currency is issued too much, the money will be light. After all, the credit of the country will be broken by the people. Therefore, it is necessary to set up an institution to coordinate the issuance of currency."

Fusu nodded: "What name does Taifu think of this organization as appropriate? How high is the grade?"

Li Yang said: "I think that the name of this institution can be called the Central Bank of Daqin! The rank corresponds to the six ministries, and the position of the president of the central bank and the rank of the Shangshu."

"Central Bank?"

Fusu nodded: "Okay, call it the Central Bank of Daqin."

Li Yang also said: "Doctor Dong has a great understanding of currency and can serve as the first president of our Central Bank of Qin."

When Dong Yi heard this, his heart trembled and looked at Li Yang in surprise and joy.

Although he expressed his great ideas and wanted to take this opportunity to show what he learned, he never expected that Li Yang would directly as the central bank so soon, and fully control the issuance of Daqin currency...

More importantly, the position of the president of the Central Bank of Daqin is the position of the Secretary of the Shangshu, and the high power position is directly on par with the Secretary of the Six Ministers. This...

Dong Yi was immediately moved and couldn't help himself.

Fusu had already seen Dong Yi's talent, so naturally it was impossible to veto it. He said immediately: "What the Taifu said is very true. Doctor Dong is indeed a talent of this kind. Then, it will be hard for Doctor Dong to issue this currency."

Dong Yi and Fusu agreed, so they immediately bowed deeply to Fusu and Li Yang. I don’t know if it was because of the joy or being too moved, so I couldn’t help but choke and said, “My son Xie Long’s kindness, Xie Zhenguo’s support, I will devote my whole life to the death!”

Fusu smiled: "You don't have to die, just don't let me disappoint you."

Dong Yi hurried and solemnly said: "I must do my best to ensure the stability of the Great Qin currency."

Fusu nodded, very happy.

…………

The issuance of credit currency is subversive for the Qin Empire and even the world civilization, and is destined to record a strong mark in the long river of history.

On the same day, the Great Qin Communiqué published this major national event in the newspaper and distributed it nationwide.

Suddenly, the whole country was in an uproar!

The Qin Dynasty will implement monetary reform and promote paper money, which undoubtedly shocked all people in the world.

Can I buy goods with money made from paper?

This is a problem that every Daqin people are worried about.

Of course, what they are even more worried about is that the copper coins and gold in their hands can still be used to purchase goods?

If the court abolished the old currency, it would be equivalent to the wealth that everyone had accumulated in the past and would be nothing.

Therefore, for a moment, the hearts of the whole country were fluctuating.

However, fortunately, Li Yang realized this problem and promptly issued a decree by the State Council and the Central Bank of Qin. The issuance of new money will not be linked to gold, but old money can be replaced with new money with the same purchasing power.

In other words, although the old money from the past will not be used again, it can be exchanged for new money, and everyone's wealth will not be at all risk.

And this decree made the people feel a little more at ease.

Of course, there is a reason why Li Yang did not intend to make the Daqin banknotes tied to gold.

For Li Yang, who traveled through time in later generations, he knew that the collapse of the Blintton Woods system had proved that the direct peg between gold and a single country's currency would eventually lead to the instability of the country's currency. Superpowers like the United States also implemented the peg between the US dollar and gold, but what was the final result? They could only choose to withdraw helplessly. This is not something that a country's currency can afford, and this is a lesson learned from the past.

In addition, the function of money is an intermediate medium for daily exchange. The economic development requires normal exchange. The faster the economic development, the greater the supply of money is required. It is obvious that the total global reserves and annual output of gold and silver are certain, so it is necessary to use national administrative power to stipulate the value of money for exchange in the future world. However, there is also a problem that there is no general equivalent linkage and currency has no real value. The economy has developed to a certain extent. The excessive supply of money has caused inflation to intensify. This requires central banks to regulate, that is, various monetary policies.

More importantly, the Central Bank of Daqin is owned by the state and serves the general public. The starting point is the interests of the vast majority of the people of Daqin, so the currency of Daqin does not need to be linked to precious metals, and there is no problem at all.

Of course, the issuance of credit currency cannot be negligent, so Li Yang naturally did it himself and participated in the whole process.

First, it is to establish the Daqin Central Bank, a central financial institution.

Then, officials were drawn from the Ministry of Revenue to enrich the personnel allocation of this institution.

Next, the design of the banknotes.

In Li Yang's view, the design of paper money is nothing more than three factors: material, appearance, and anti-counterfeiting.
Chapter completed!