Zhu Ying ignored everyone's expressions and added Ming Dynasty treasure banknotes to the table one by one.
The original one Ming Dynasty treasure banknote turned into two, two became four, four became eight, and soon there were hundreds of Ming Dynasty treasure banknotes on the table.
However, the number of cards placed on the table has not changed at all.
Zhu Ying asked everyone while increasing the size of Ming Bao Banknotes, how is the purchasing power of Ming Bao Banknotes now?
"Three!"
"Two!"
"One piece!"
"Half a sheet!"
"..."
At first, everyone thought that Zhu Ying was the eldest grandson of Emperor Ming Dynasty. Zhu Yuanzhang and the prince were also present and responded cooperatively.
But soon, as the number of Ming Dynasty treasures increased, people spoke less and less.
In the end, only Lan Yu was still counting on her fingers.
When the number of Ming Dynasty treasure banknotes exceeded one hundred, even Lan Yu chose to shut up with a dull look on his face.
For an instant, the entire manor fell silent.
"Now, do you know why I say Ming Dynasty treasure banknotes are disadvantages?"
After Zhu Ying took out all the Ming Dynasty treasure notes in his hand, he lightly scanned the crowd and then asked lightly.
Of all the people present, only Lan Yu had a question mark on her face, while the rest had melancholy looks on their faces.
Especially Zhu Yuanzhang, whose brows had already furrowed into a Sichuan shape.
"According to what you say, our Ming Dynasty treasure money is really worthless?"
"What's going on here?"
Li Shanchang was the first to ask.
According to this algorithm, Da Ming Bao Chao is indeed too hard to wipe your butt!
After all, it was issued by the imperial court. How could this happen?
If the emperor's eldest grandson hadn't spoken out, I'm afraid that by the time we discovered this problem, the whole world would have been in chaos.
"The core reason is that His Majesty does not understand economics and blindly prints Ming Dynasty treasure banknotes, which leads to the over-issuance of Ming Dynasty treasure banknotes, which will naturally depreciate along the way."
Zhu Ying sighed.
Zhu Yuanzhang's original intention was good, but when the Ministry of Revenue printed and issued the Ming Dynasty treasure banknotes, they did not realize that printing too many of them would lead to the devaluation of the Ming Dynasty treasure banknotes.
By the time this problem was discovered, there was no way to fix it and we had to let it go.
"Tell me quickly, how to avoid it?"
Wu Lin also frowned and stood up.
"Fine!"
Seeing the confused expressions on everyone's faces, Zhu Ying nodded.
"You must have discovered that the value of Ming Dynasty treasure banknotes does not lie in the amount of money it can be exchanged for, but in the amount of goods it can buy!"
"The Ming Dynasty's banknotes have purchasing power. We can call it money power."
"Therefore, there is no problem for the imperial court to issue Ming Dynasty treasure banknotes, but the problem is that the quantity of Ming Dynasty treasure banknotes must be directly proportional to the total amount of goods on the market."
"If there are more goods in the market, more Ming Bao banknotes can be printed and issued. Once there are more goods and less Ming Bao banknotes, another serious problem will arise. This problem can be called deflation."
"On the contrary, if there are few goods in the market, less Ming Dynasty banknotes will be printed. Once there are fewer goods and more Ming Dynasty banknotes, it will also cause a problem, which we can call inflation."
As Zhu Ying spoke, he wrote these eight key words on the wall.
Li Shanchang and Wu Lin were unprepared and could only keep it in their hearts.
Only Zhu Biao came here not to eat, drink and play cards, but to learn.
So I took out the small notebook I had prepared and wrote everything down verbatim.
"What is deflation? What is inflation? What impact will this thing have? What is the connection?"
Zhu Biao asked while taking notes.
"The so-called deflation is easy to understand, that is, there are a lot of goods in the market, but people don't have Ming Dynasty money. In this case, people can only choose to trade by barter, and the market will not prosper."
Zhu Ying slowly explained.
"Isn't this a big problem?"
"That's right, at most it's just a little more troublesome when collecting taxes. Is there any problem?"
“So this is what deflation is all about?”
...
After Zhu Ying finished speaking, everyone immediately began to whisper among themselves.
Naturally, the Ming Dynasty cannot be compared with the 21st century. Today's commerce is not developed, and the main body is still a small farmer economy. Therefore, most people are focused on their own three-acre land.
In fact, in many places among the people, not only Ming Dynasty treasure notes are not in circulation, but real gold and silver are rare, and transactions are still carried out by barter.
Therefore, deflation is a big problem for the 21st century, but for the Ming Dynasty, its influence is indeed just that.
"This influence is indeed limited, but the influence of inflation cannot be underestimated."
"This is also easy to understand. The core reason is that the imperial court was not restrained and blindly issued Ming Dynasty banknotes, which led to the continuous depreciation of Ming Dynasty banknotes!"
Zhu Yuanzhang didn't understand economics, let alone finance. In Zhu Yuanzhang's concept, as many Ming Dynasty treasure banknotes as we print, the court can distribute them. The more we print, the richer the court will be.
"As you just understood, the quantity of goods on the market remains unchanged, but the number of Ming Dynasty banknotes continues to increase, which leads to a continued decrease in the purchasing power of Ming Dynasty banknotes."
"For example, one Ming Dynasty treasure note can buy ten kilograms of rice at the beginning, but in the end, one hundred Ming Dynasty treasure notes can buy one kilogram of rice."
When everyone heard this, they nodded to express their understanding.
After Zhu Ying's demonstration and examples just now, they all understood it.
When Zhu Yuanzhang heard this, his face turned red.
It seems that my thinking is too simple!
"Is this inflation so terrifying?"
"Why didn't I understand?"
Lan Yu had a question mark on her face and finally couldn't help but ask.
What on earth is this little brat talking about?
What is shrinking and what is expanding?
Why did everyone else look like they couldn't poop after listening to it?
It can't be more terrifying than us killing people on the prairie, right?
"It's not surprising that you don't understand."
Zhu Ying smiled.
Many people in the 21st century are confused about the connection between the two, let alone the ancients of the Ming Dynasty.
"In short, once inflation rises, the Ming Dynasty treasure money in your hands will be reduced to a piece of waste paper, and you will not be able to buy anything from anyone. Now do you know how terrifying it is?"
"Can't buy anything?"
"That's really scary!"
Except for Zhu Yuanzhang and Zhu Biao, the rest of this group of people had to receive salaries from the court. During the Hongwu period, nine out of ten of the salaries given to officials by the court were paid with Ming Dynasty treasure notes.
Once the Ming Dynasty treasure banknote is reduced to a piece of waste paper, nothing can be bought, and the impact on them will naturally be the greatest.
After all, the common people basically do not have any Ming Dynasty treasure notes in their hands, and even if they do, they are only handfuls.
When the time comes, it’s okay to work for Lao Zhu’s family. The key is what the whole family eats and drinks.