"Now you should understand, what are the disadvantages I want to express?"

Fang Shiyu glanced at everyone present, and then said indifferently.

As expected, except for Lan Yu's face full of confusion, the other people looked very heavy.

Especially Zhu Yuanzhang, his face was so gloomy that water was about to drip out.

"Boy Fang, according to your opinion, my treasure money from the Ming Dynasty is not valuable?"

"What's going on with this...?"

After a long silence, Li Shanchang also asked.

This discovery now is really terrifying.

The treasure notes issued by my Ming Dynasty are not valuable!?

If it weren't for the example of this simple example, by the time these important officials of the court discovered it, the world would have been in chaos.

"You are right. The biggest problem with my Ming Dynasty treasure money is that it is too much, which will lead to the inability to pay money in the future."

Fang Shiyu said a little sadly.

In fact, when the Ming Dynasty’s Ministry of Revenue issued treasure banknotes, it never paid attention to the issue of controlling the issuance quantity.

When the treasure banknotes were flooded, the court was powerless to make a comeback and could only let the treasure banknotes depreciate and then become a piece of waste paper.

"I also hope Mr. Fang can explain the whole story in detail to me."

Wu Lin stood up and said respectfully to Fang Shiyu. The name in her mouth also changed from the name Fang boy who had just become the current Young Master Fang.

"Since you are so interested in Lao Wu, I will explain it to you."

Seeing Old Wu's searching for knowledge, Fang Shiyu suddenly felt his self-confidence burst.

Anyway, I have told them about running away a long time ago, and it is not bad now.

"You have just seen that the real value of Baochao is not about how many chunks of money he can exchange for when he writes, but about how much things he can buy."

"I like to call the ability to buy money as money ability."

Fang Shiyu rolled up his sleeves and wanted to write on the wall habitually, but then was surprised to find that he didn't have a brush in his hand.

Fortunately, Zhu Biao behind him was ready, so he quickly handed the ink-dip brush to Fang Shiyu.

After looking at Zhu Biao with appreciation, Fang Shiyu continued.

"You have seen it just now. The treasure notes issued by the court must match the goods that can be purchased on the market."

"If there are too many goods, there will be more treasure money, so the court needs to print more treasure money, otherwise it will cause deflation."

"If there are fewer goods, there will be less treasure money. The court needs to take back the excess treasure money, otherwise the money will not be valuable at that time, which will inevitably cause inflation."

Fang Shiyu wrote down the eight big words "inflation" and "deflation" on the wall of the courtyard.

Li Shanchang and Wu Lin quickly kept these two terms in mind.

As for experienced people like Prince Zhu Biao, he had already taken out a notebook and recorded it on it.

"Mr. Fang, what does deflation mean and inflation mean? What is the relationship between these two, and the disadvantages."

Prince Zhu Biao asked curiously.

“This question is good.”

Fang Shiyu looked at Prince Zhu Biao again with appreciation.

"Deflation means that there is only goods on the market but no treasure money, so the people can only barter, and the market will become a little withered."

Fang Shiyu pointed at the deflation of the dragon and the phoenix danced in a big word.

"That seems to be that deflation is not that scary."

"That's right, at most, the imperial court is not so convenient and the impact is not so great."

"It's true, this deflation is nothing more than that."

“…”

A small discussion is triggered below.

Unlike the highly developed commercial society in later generations, the Ming Dynasty is now dominated by small peasant economy, and each household is following its own fields.

There are also folk customs of bartering in many places.

Therefore, the deflation, which was terrified in later generations, had little impact on the Ming Dynasty.

"But compared to deflation, what's more terrifying should be inflation."

"By giving you an example just now, you should clearly understand that the so-called inflation means that the imperial court is over-issuing money for money, which makes money worthless."

Fang Shiyu drew a conspicuous circle on inflation.

Today's priest has never thought about his brain when printing and issuing treasure money. He really thought that as much as the treasure money is printed, he could spend as much as he prints.

"You have all seen it just now that when the goods and total volume remain unchanged or the growth rate cannot keep up with the speed of issuing Baobao, the purchasing power of each Baobao will only decrease and decrease."

"Until the end, you can change to a mahjong card from the beginning, and you can change to a mahjong card at least ten now, and you can change to a mahjong card."

Fang Shiyu pointed to the treasure notes on the table and said mahjong.

After everyone heard Fang Shiyu's words, they nodded in agreement.

You should know that they have watched with their own eyes the changes in the purchasing ability of Baochao.

If you think about it carefully, the example I just mentioned is very likely to happen.

Zhu Yuanzhang's face turned red.

He was so stupid that he really thought that printing a lot of treasure money would be equivalent to sending out how much money he would pay.

"Boy Fang, is the inflation you mentioned really that scary?"

"Why can't I understand?"

Lan Yu's face was full of doubts.

What did Boy Fang say just now?

Why does it expand and tighten?

Money is worthless again, and money is worth more.

From His Majesty to Old Man Li and the dead scholar, their expressions seemed to be constipated.

Is this even more terrifying than dying in a war?

"Oh, it's understandable that you can't understand.

Fang Shiyu nodded with a smile.

Even people in later generations may not be able to understand the relationship between inflation and deflation, let alone the ancient general Lan Yu.

"I'll give you a simple example. After inflation, the treasure money in your hand is a piece of waste paper. Do you think you are afraid of being worried or not?"

"Well, this is really a little scared."

Let’s not talk about anything else, we should know that 80% of the salary of him and his soldiers were paid in the Ming Dynasty treasure banknotes.
Chapter completed!