Regarding the economic issues of later generations, Yang Fan can only explain them with this simple principle.

Although it is a bit inappropriate, it is still a very vivid metaphor.

Indeed, a good economic environment requires continuous circulation.

If value is created but not reflected, it will inevitably lead to currency tension.

This is why later countries will issue corresponding coins every year when calculating GDP.

This novel explanation made everyone think deeply.

After pondering for a moment, Quan Wanji asked: "Grand Governor, your description is quite appropriate. Is there any way to change this situation?"

Yang Fan nodded affirmatively: "Of course there is a way, just transfer copper coins from other places, or mint copper coins of the same value."

As soon as he finished speaking, Xiao Yu on the side said: "Grand Governor, with all due respect, this method is not feasible. As far as I know, the copper coins in the Guanzhong area are also very tight now. In addition, the imperial court does not have enough copper to make copper coins.

.”

Xiao Yu had served as prime minister twice and was very clear about the current situation of the Tang Dynasty.

Yang Fan chuckled and continued:

"Since the imperial court does not have enough copper to mint coins, it can only use other coins instead."

Before the Tang Dynasty, almost all dynasties used copper coins as transaction currency.

This also led to the formation of inertial thinking, so no one thought of using other coins instead.

"Other coins, are you talking about silver or gold?"

When Xiao Yu heard that Yang Fan said that other coins could be used to solve the shortage of copper coins, he immediately thought of gold and silver.

Although gold and silver are not often used in ordinary transactions, they are indeed included in the scope of currency transactions.

Unfortunately, the value of gold and silver is too high and is inconvenient in daily transactions, so it is difficult to implement it.

"No, what I mean is to promote a brand new currency, which will replace copper coins one to one, or in multiples."

Yang Fan's answer made everyone even more confused.

In everyone's opinion, Yang Fan's method is not feasible.

Seeing everyone's confused look, Yang Fan certainly knew what everyone was thinking, and said again: "Everyone, why do we have to limit ourselves to casting copper coins? Now that the imperial court has mastered movable type printing and can also mass-produce paper, why?

Why can’t we use banknotes instead?”

As far as Yang Fan knows, paper currency was produced in the Song Dynasty, which is the so-called silver note.

Because in the original history, the Song Dynasty had gradually mastered the mass production of paper and movable type printing.

Now that I have dedicated these two things to His Majesty Li Er, Datang has the prerequisites for minting banknotes.

Since there is an easier way, why hang yourself on the tree of copper coins?

Is it really feasible to use paper money instead of copper coins as currency?

Everyone present had question marks on their faces!

In the eyes of everyone, who would use precious metals such as gold, silver, and copper to exchange for worthless banknotes?

This is probably the inertia of thinking.

"Grand Governor, if we use paper money, wouldn't it cause chaos in the world? After all, anyone can imitate it?"

Quan Wanji was a little confused and expressed his doubts.

Others were also puzzled and agreed: "Yes, Governor, instead of minting copper coins, we will use paper money. Although the money shortage has been solved, won't it lead to the proliferation of coins?"

Yang Fan explained with a smile: "If you want to replace copper coins with banknotes, these banknotes must meet several characteristics. First, they must be easy to carry and difficult to copy. Second, they must be able to be mass-produced. Third, they must have gold coins, silver coins or other coins of considerable value. Copper coins and other precious metal reserves.”

"Of course, what is more important is to issue corresponding banknotes based on the estimated gross national product. At the same time, it needs to be guaranteed by the credit of the empire and no random printing is carried out. This will not cause inflation."

Although we don't know the principle of inflation, we are all smart people and can still understand what Yang Fan means.

The more I think about it, the more I think Yang Fan's words make sense, if that's really the case.

In the future, paper currency will replace copper coins, which not only solves the problem of inconvenient transportation of copper coins, but also reduces the manpower and material resources required to mint copper coins.

Moreover, banknotes are more convenient for merchants to trade. At least when they are not doing business, they can bring in more copper coins than goods.

If portable banknotes were introduced, merchants everywhere would quickly accept them.

As long as the imperial court carries out unified implementation, it will definitely be able to replace the shortage of copper coins in the short term.

"This seems to be a good idea, but it only requires the consent of the court. This will not solve the problem of coin shortage in Huating County."

Xiao Yu is indeed a person who has served as prime minister. After thinking about it for a while, he realized that Yang Fan's proposal was very good?

If it can be implemented, it will definitely be welcomed by all parties, and it is extremely operable. It is really possible to alleviate the money shortage in the market in a short time.

Unfortunately, the prerequisite for all this is that the emperor and the court must fully support it.

Seeing Xiao Yu's move, Yang Fan smiled.

The reason why I invited him here today was because I wanted to unite the Jiangnan nobles to set up banks in the Jiangnan area.

Unexpectedly, Pei Xingjian raised the issue of money shortage today, so Yang Fan decided to merge the two into one, planning to establish a bank and promote banknotes at the same time.

To put it bluntly, 99% of the world's wealth is actually in the hands of the powerful.

The same goes for Jiangnan!

Therefore, only with the support of these Jiangnan nobles can this policy proceed smoothly.

After all, if they want to exchange the banknotes, these aristocratic families need to exchange all the gold, silver and copper coins they have hidden.

Without the participation of these people, the Jiangnan Aristocratic Family would certainly not be willing to exchange the metals they considered valuable for these banknotes of unpredictable value.
Chapter completed!