What are the main elements of the paper money system?

1, paper money is instead of metal money to perform the means of circulation by the state (or some regions) issued by the mandatory use of the symbol of value. People initially believed that only metal money was money. After the appearance of paper money, bank notes and other symbols of value, people again included them in the scope of money. Later, it was gradually realized that bank deposits had the same properties as banknotes and that they could be used to purchase goods and pay for services. Moreover, there are frequent reciprocal transformations between bank deposits and metal and paper money. Metal money, paper money, etc. deposited in the bank, that is, bank deposits, taken out of the bank that is metal money, paper money and other currencies. Metal money, banknotes, etc. and bank deposits of this transformation, not money and non-monetary transformation, but two different forms of money between the transformation.

2, because of this kind of monetary system is not linked to gold, and by the state to master the issue, therefore, it is very easy according to the needs of the state finance rather than according to the objective needs of the development of the commodity economy and issue, which led to the issuance of paper money is too much, the formation of inflation. To ensure the stability of the paper money system, we must adhere to the principle of economic issuance of paper money, in accordance with the objective requirements of the law of currency circulation in the appropriate amount of issuance; and according to the objective development of the economic situation by the central bank to carry out flexible regulation.

Paper currency. Generally issued by the national bank or the bank authorized by the government. China's paper money originated in the Northern Song Dynasty "cross", the evolution has been inherited. Song wang yinglin "sleepy learning - commentary": "according to fan chun father for the" guo zigao Zhi ", the word cross cloud: the establishment of paper money, this and the money phase right. Yuan _ between has this language carry on." The two quarters of the shooting surprise "Volume 36:" Look at the official, you say that the abbot is so big family, and the weight of gold and silver, is not a car loaded to the end of the? I do not know that the Song time all the official banknotes, and called the paper money, and called the official will be son, consistent stop is a piece of paper, there are 100,000 Guan, stop is 100,000 pieces of paper, very lightweight." Yu Dafu "the jump of paper money": "Wen Park gently pinched her hand pinched tightly pushed out a push, she also followed the trend of the hand loosened, the two new banknotes on the fluttering fell on top of his quilt."