Silver capital: how can the theory of gold and silver hoarding ensure that large-scale inflation does not occur?

After the opening of the new air route, a large amount of silver flooded into Europe, causing serious inflation in Europe and triggering a price revolution. However, after absorbing a large amount of silver, the China market did not experience serious inflation like the European market. The circulation of silver seems to have stopped in China, like a mud cow entering the sea. In Silver Capital, a hypothesis is mentioned: the theory of gold and silver hoarding.

1, the theory of gold and silver hoarding is a traditional view to explain this phenomenon, which is supported by David Hume and Adam Smith. China people advocate gold and silver products, and princes and nobles will use precious metals such as gold and silver as ornaments or wear them as jewelry, necklaces and other items. A considerable amount of silver left the market and became an ordinary expensive commodity, which consumed a part of the surplus silver in the market.

2. Gold and silver will become the wealth of some people, be hoarded and stored, and be separated from the circulation of the market. China people have always had the idea of storing gold and silver for a rainy day, and they have a strong sense of crisis. Especially precious metals, are easy to carry, with strong purchasing power and convenient circulation. At that time, when Xiao Shenyang was liquidated, 632,000 gold and 30122,000 silver were copied from his home. This kind of silver consumes a lot of silver flooding the market.

A large amount of gold and silver will also be buried with the royal family. Our country has been saying that "birds of a feather flock together, and people are divided into groups". In order to continue to enjoy the splendor after death, some valuable things are often buried with people and continue to consume. Not to mention that the burial of the royal family has its own rules. During the royal funeral, a large amount of silver was buried in the mausoleum, which is also the main target of grave robbers visiting the mausoleum. Silver becomes "dead money" after being buried underground for a long time, losing its monetary value and curbing inflation in the market.

The theory of gold and silver hoarding mentioned in Silver Capital has always been the traditional explanation that there was no large-scale inflation in the Ming and Qing Dynasties, and it has been recognized by many people.