parentshiftbook Chapter 158: The Twins In The Process Of Economic Development, Inflation And Deflation [Please Subsc
Chapter 158: The Twins In The Process Of Economic Development, Inflation And Deflation [Please Subsc
Zhu Yuanzhang, Empress Ma, Prince Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes all silently digested what Yan Changqing just said.
With Yan Changqing's explanations in such detail, they have a clearer understanding of the direct causes, root causes, specific manifestations, etc. of inflation.
After a while, Jin Wang Zhu Fan pointed to the [deflation] on the wooden rice paper behind Yan Changqing and asked:
“Then sir, what does deflation mean?!!”
Although in comparison with the literal meaning and the explanation of inflation just mentioned by Yan Changqing, he also has some speculations and understandings of deflation.
But when faced with the knowledge about dragon-slaying skills, Zhu Zi couldn't believe his guesses and understanding at all.
If this was misunderstood and then implemented incorrectly, the credibility of the Ming court would be suddenly lowered, and my father would probably have the idea of beating him to death.
So it’s better to be on the safe side. Listen to Mr. Yan’s explanation and then make your own guesses based on your own thoughts. The two are more reliable for understanding.
Hearing Jin Wang Zhu Fan's question, Yan Changqing showed no surprise on his face.
Even if Zhu Fan didn't ask, he would continue to explain deflation as well.
After all, inflation and deflation are like twin brothers. When explaining, they must be explained together.
Otherwise, if you only listen to one of them, the final result will be social and economic overcorrection, which will lead to falling into another bad economic phenomenon.
"Deflation, as the name suggests, is the opposite of inflation. Its meaning is the phenomenon of a comprehensive and continuous decline in the overall price level in social and economic operations."
"The direct cause of deflation was that the number of Ming Dynasty currency notes issued by the national court at that time was less than the number of Ming Dynasty currency notes required for circulation and transactions in Ming society at that time."
“The specific manifestations of the phenomenon of deflation are: continued decline in prices, market weakness, and economic contraction.
"The essence is that the total social demand is less than the total social supply!!!"
"Let's take the glass beads just now as an example."
"I have ten glazed beads for sale, but His Royal Highness King Chu and His Highness Prince Qi only have 300 Ming Dynasty treasure notes in their hands, and each of them only wants to buy three glazed beads.
Even just a glass bead々||"
"As a result, I will have a large amount of excess colored glass beads that I cannot sell."
"In order to be able to sell more colored glass beads, I had to sell them at a reduced price. The price of the glass beads that were originally worth one hundred Wenbao notes was reduced to the price of seventy Wenbao notes, or even the price of fifty Wenbao notes." sell."
"By selling at a reduced price, we can reduce our losses as much as possible."
"Although this situation will be beneficial to the people in a short period of time, it will harm my interests as the seller."
"As time goes by, I find that selling glass beads has become unprofitable, so I will give up making glass beads and disband the glass making workshop, and the people of Ming Dynasty who are employed by me will lose their jobs."
"In the end, on the one hand, the people of the Ming Dynasty can no longer buy colored glaze beads, and on the other hand, they may lose their jobs, causing them to lose their source of income, which ultimately harms the interests of the people of the Ming Dynasty."
"This phenomenon is called deflation."
"Correspondingly, the solution to deflation is to increase the issuance of Ming Dynasty currency notes, expand fiscal expenditures, increase investment, reduce taxes, etc."
"Ultimately, we will fundamentally ensure that the total demand of Ming people is equal to the total supply of Ming society; directly, the number of Ming treasure banknotes traded and circulated in Ming society will increase.
Yan Changqing calmly explained the meaning, phenomenon, essence, causes, and solutions of deflation.
Below, Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Cang, Zhu Fan, Zhu Di and other princes all had thoughtful looks on their faces.
After having the previous detailed explanation of inflation, it becomes much easier for them to understand the opposite deflation now.
"Inflation and deflation are two bad economic phenomena in the process of social and economic development."
"Once inflation occurs, it will cause prices to rise and treasure banknotes to depreciate."
"If the average income of Ming people does not increase, then the living standards of Ming people will decline, the actual purchasing power of treasure banknotes will also decrease, and the money will be worthless, which will cause chaos in the social economy and living order."
"Similarly, once deflation occurs, it will cause prices to drop, which will be beneficial to the people of Ming Dynasty in a short period of time."
"However, a long-term and large-scale decline will result in a reduction in the profits available to producers, which will lead to a reduction in the number of people willing to join the industry, which will in turn lead to a reduction in the income of the people of Ming Dynasty and even the risk of unemployment."
“So, how can we make the Ming Dynasty’s social economy develop and operate smoothly so that neither inflation nor deflation occurs.
"This is a test of the imperial court's ability to control the Ming Dynasty's social economy at a macro level."
Speaking of this, Yan Changqing glanced at Zhu Yuanzhang, Queen Ma, and the princes Zhu Biao, Zhu Fang, Zhu Fan, Zhu Di and other princes below.
[In this way, when there is inflation, we have to order the treasure banknote collection department to reduce the number of copies and issuance of Ming Dynasty currency notes. 】
[And when there is deflation, we have to order the treasure banknote collection department to copy and issue the number of Ming Dynasty currency banknotes. 】
[But how to judge when it is inflation and when it is currency?!!]
[By the way, I said before that the one hundred Ming Dynasty currency notes in the hands of ordinary people can only be exchanged for eighty-five copper coins. 】
[Then we only need to check from time to time whether the 100 Ming Dynasty currency notes in the hands of the people of the Ming Dynasty can be 100% exchanged for 100 copper coins and we will know!!!]
[If one hundred Wen of Ming Dynasty treasure notes cannot be exchanged for one hundred Wen of copper coins, then it is inflation. 】
[Similarly, if one hundred Wen of Ming Dynasty treasure notes can be exchanged for more than one hundred Wen of copper coins, then it is deflation. 】
[We truly deserve to be the emperor [Such a simple method can make us think of it!!!]
After Zhu Yuanzhang frowned, he relaxed again, and his expression changed from solemn to gradually letting go of his worries and regaining a relaxed look.
Prince Zhu Biao, Zhu Xi, Zhu Fan, Zhu Di and other princes also had such relaxed expressions.
After knowing and understanding the causes, phenomena, essential reasons, and solutions to inflation and deflation.
Their worries about the possible decline in Ming Dynasty's credibility caused by inflation and deflation have also been reduced a lot.
After all, they now know the origins, phenomena, essential causes, and solutions of inflation and deflation.
If they can't solve inflation and deflation in this way, then they are useless.
And are they trash?! Tons!
A man from the chaotic times of the late Yuan Dynasty suddenly fought his way out with a sword and ascended to the throne of emperor.
The other few have received the most top education in the Ming Dynasty, and their own talents and understanding are also pretty good.
Therefore, Zhu Yuanzhang and the princes Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes still have a little confidence in their abilities.
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