Traditional Culture Encyclopedia - Traditional festivals - 1. How to understand the decline of monetary economy in Wei and Jin Dynasties, and how to restore physical exchange to commodities?
1. How to understand the decline of monetary economy in Wei and Jin Dynasties, and how to restore physical exchange to commodities?
1, metal money gradually withdrew from circulation: with the passage of time, the status of metal money in circulation was gradually replaced by physical objects. One of the reasons for this phenomenon is that it is difficult for metal money to keep its value stable at that time, while food, silk and other physical objects have inherent value stability, so they have gradually become the main medium of exchange.
2. Recovery of physical exchange: Due to the shortage of metal currency and the decline of credit, physical exchange once again became the mainstream mode of exchange in Wei and Jin Dynasties. Physical objects such as grain and silk have become the main medium of exchange in people's daily life, while money is mainly used for large transactions and taxes.
3. The influence of political factors on monetary economy: During the Wei and Jin Dynasties, political turmoil, the central government lost its effective control over the manufacture and distribution of money, and social distrust led people to hoard physical objects for a rainy day, which further promoted the recovery of physical exchange.
4. Limitations of monetary economy: The monetary economy in Wei and Jin Dynasties was faced with such limitations as unstable supply of metal money and great fluctuation in value, which restricted the development of monetary economy and prompted people to reconsider the feasibility of physical exchange.
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