Daming: Old Zhu, we agreed not to rush!

Chapter 338 Maybe decades, maybe a hundred years is not enough

Can water carry a boat or capsize it?

Following Su Jing's words, Zhu Biao and others began to think again.

"Mr. Su means, does the issuance of this currency also have the effect of regulating the economy?"

Zhu Yan understood somewhat, but was more puzzled.

"But Mr. Su said not long ago that the value of banknotes is actually linked to commodities, and no matter how many are printed, it will not change anything."

Zhu Xing tilted his head, but found nothing.

Zhu Di remained silent as usual, but the puzzlement in his eyes already explained a lot of problems.

Zhu Wei was very straightforward, he said to Su Jing: "Master Su, the students don't understand."

Zhu Yuanzhang outside the door also muttered to himself: "Water can carry a boat or overturn it. Paper money can destroy the economy and also regulate it, but how to regulate it?"

Liu Bowen's eyes turned, obviously thinking about something.

Only Zhu Biao's eyes lit up and he said, "Master Su, the students have some ideas."

"Tell me, prince."

Su Jing said with a smile, I have said so much, and I should have a little understanding.

Zhu Biao said: "Earlier, Master Su once talked to me about one of the ways to adjust grain prices, the flat purchase method. Specifically, the harvest year and the disaster year are divided into upper, middle and lower grades as the standard for purchasing and selling grain. The court is higher than the market in harvest years Purchase grain at a low price, and sell the grain purchased in a good year at a price lower than the market price in an unsatisfactory year.”

"Students think that banknotes have the same effect. When the harvest comes, it means that the total number of commodities in the market will increase, and the prices of commodities will naturally fall. If the number of banknotes increases, then the quantity of commodities and the amount of banknotes will increase equally. It can also maintain stability.”

"Conversely, when the year is in arrears, a small amount of currency is issued, the total amount of goods is reduced, and the total amount of banknotes is also reduced, which can stabilize food prices."

As soon as Zhu Biao finished speaking, everyone else suddenly realized.

Over-issuance or under-issuance of banknotes can change the price of commodities, but the price of commodities is not only regulated by banknotes, but also affected by some natural and man-made disasters.

The reverse use of banknotes can stabilize the prices of commodities in a relatively balanced state, which is equivalent to turning the previous defects of banknotes into advantages.

"The prince's words are very extraordinary, and the way in this is inexhaustible."

Su Jing smiled and nodded.

Although what Zhu Biao said is very simple, in the actual mediation, there will be more changes, but it is enough to have such a cognition after listening to such a class.

After all, for the current Daming, paper currency is still a bit ahead of its time.

The whole theory of paper currency currency has not yet been formed.

"So that's the case, big brother is really powerful, I definitely can't think of the way in it."

Zhu Xi has become naive again, and he has always been in awe of his elder brother Zhu Biao.

"The mark is good, really good. This shows the necessity of issuing banknotes."

Zhu Yuanzhang's face was full of uncontrollable joy, and the deeper Zhu Biao's insight, the happier he was.

This is the future successor, the better the Ming Dynasty, the more prosperous it will be.

Liu Bowen also echoed: "His Royal Highness the Crown Prince has a great opinion, and the old minister admires it. Mr. Su's teaching is really extraordinary."

Although it was a compliment to Zhu Biao, what he said clearly meant that Su Jing taught well.

Zhu Yuanzhang was happy and didn't care about the details.

Zhu Fan said: "Brother, I understand that more banknotes are issued in good years, but how do you understand that banknotes are issued when you are young? What if the good years come before the bad years? In this way, the good years have just issued banknotes, and the bad years will not be issued. It will decrease!"

As soon as the question about the youngest Zhu Yan came up, it immediately aroused other people's doubts.

"That's right, what the third brother said is right. In this way, wouldn't it be possible to achieve the adjustment effect?"

Zhu Xing immediately agreed.

"The second child is a fool, he can yell at whoever says it, he really doesn't have any ideas of his own."

Zhu Yuanzhang couldn't help frowning when he heard what Zhu Xi said.

So far, Zhu Xi seems to change his mind every time he listens to someone.

Liu Bowen didn't say a word, even if what Lao Zhu said was true, but his father belittled his son, that was normal family education, but if he, an outsider, said that Lao Zhu's son was not good, it would be presumptuous.

Zhu Di said: "Second brother, isn't this very simple, since the imperial court can issue banknotes, it can naturally be withdrawn."

Zhu Di's idea is quite simple and direct.

However, as soon as he finished speaking, he was immediately insisted by Zhu Yan: "Fourth brother, banknotes are the representative of the country's reputation. The court can issue banknotes, but if they are recklessly recycled, it will only cause the people's distrust. When the time comes No one uses it, and the banknote is just a piece of waste paper."

Zhu Fen's understanding of banknotes is quite profound.

This is not just a piece of paper, the credibility of the institution endorsed behind the banknote is the key.

Zhu Di was speechless for a moment, not knowing what to do.

Everyone couldn't help looking at Su Jing again, hoping to get the answer from Su Jing's mouth.

Su Jing said: "The king of Jin is right. If the national reputation represented by banknotes is used to fool the people wantonly with power, they will definitely lose their trust."

"However, this does not mean that what King Yan said is wrong, it just needs some improvement in the method."

The first sentence directly agreed with Zhu Yan, and everyone felt that there was no problem.

But when the subject changed in the second sentence, Zhu Di's eyes immediately flickered.

"Master Su, how can we improve?"

Zhu Biao immediately asked.

Su Jing said lightly: "Although we have been talking about paper money, gold and silver coins have not been abandoned. The role of gold and silver in the currency system is still very important."

"I still remember what we raised in class at the beginning. Gold and silver are very rare and stable currencies, and their value is also very stable."

"Then, by adjusting the exchange rate between gold, silver and banknotes, is it possible to achieve the effect of recycling banknotes? Don't look at it as a simple currency exchange, but after the operation, it can actually change the total currency value in the entire currency circulation market."

"Of course, the prerequisite for such an operation is that the Ming court must have sufficient gold and silver reserves, otherwise a run will easily occur."

"I don't know much about Daming's current gold and silver reserves, but I can probably guess that Daming's current gold and silver reserves will not be too much, after all, there are too many places to spend money."

"So, this is also one of the reasons why I said that it is not suitable for Ming to issue banknotes now, because there are too few gold and silver reserves."

The poverty of Ming Dynasty has been famous in all dynasties.

Of course, the poverty here refers to the poverty of the imperial court.

"The exchange rate of gold and silver to paper currency?"

Zhu Biao was a little confused and didn't react for a while.

If Zhu Biao is like this, Zhu Xi and others are naturally confused and don't know much about it.

Even Lao Zhu outside the door frowned and thought carefully: "Is this really possible?"

Only the eyes of two people are different from them.

That is Liu Bowen and Zhu Wei.

Because the truth here can actually be explained by mathematics.

It just so happened that Liu Bowen and Zhu Huan were both good at mathematics.

"Of course it is possible, Your Majesty, Mr. Su is talking about..."

Just as Liu Bowen was about to explain to Zhu Yuanzhang, Su Jing's voice sounded in the study.

"Wu Wang, it seems that you have an idea, and you can briefly explain it to everyone."

Su Jing smiled at Zhu Lu, and there was no doubt in Zhu Lu's clear eyes.

Zhu Wei got up and said: "Actually, the exchange rate is a simple mathematical substitution. For example, the original exchange rate is 1 gold for ten-coin banknotes. When it is necessary to reduce the number of banknotes on the market, you only need to increase the number of ten-coin banknotes for gold. , For example, [-] gold is exchanged for ten yuan banknotes. In this way, many people who hold banknotes in the market will exchange banknotes for gold and silver. In this way, the amount of gold and silver and banknotes seem to have remained unchanged. But as long as the imperial court reduces the release of banknotes, the amount of banknotes on the market will naturally decrease."

"The opposite principle is also similar, mainly because of the change in the corresponding relationship."

After Zhu Huan finished speaking, he sat down. For him, this was a simple math problem.

Although he was precocious about the national economy and the people's livelihood, he didn't think too much about it.

"It makes sense, fifth brother is smart!"

Zhu Xi was the first to speak again. At such a time, King Qin will never be missing.

Zhu Di said: "But if that's the case, what's the difference from the coercion I mentioned? Isn't this also a waste of the court's reputation? After all, the exchange rate between gold and silver and banknotes cannot be changed at will, right?"

"If you really want to change and change, how can the people trust the court?"

Zhu Yan nodded and said: "That's right, in this way, I'm afraid the court's reputation will drop a lot."

Zhu Wei shook his head and said: "I don't know about it, I just made the result according to Master Su's words."

Zhu Xi immediately said: "That's right! What's the difference? Mr. Su."

Zhu Biao was still in deep thought, and the old Zhu outside the door frowned even tighter: "Su Jing, you must have something to say, why are you always moaning!"

Liu Bowen smiled and said: "Your Majesty, just listen patiently. Mr. Su must have a clever plan."

"What King Wu said is the core method, but the actual operation requires some disguise, or changes."

Su Jing said indifferently: "Plainly speaking, the adjustment of the exchange rate between gold and silver and banknotes is to change the total amount of banknotes in the market. When operating, a direct change will definitely cause dissatisfaction or mistrust among the people."

"But what if a medium is added to it? A limited financial product is used as an intermediate for the exchange of gold and silver and banknotes. These financial products are purchased with banknotes, and then the financial products are exchanged for gold and silver."

"The amount released, as well as the time limit, can be constrained by financial products. Even if the people don't trust it, it can also be operated by the court. After all, whether it is banknotes or gold and silver, the largest holders, It must be the imperial court!"

Su Jing once again proposed a concept, financial products.

Although everyone is not surprised by Su Jing Market's new words, but for the word 'financial product', it is really difficult for them to understand it literally.

"Mr. Su, what is this financial product?"

Zhu Xi asked suspiciously: "What is it? Mr. Su just invented it? What's the use?"

"Since it is a product, it should be some kind of item. The word finance is a bit obscure, but it is related to gold, and it may be some kind of gold utensil."

Zhu Yan tried to express his thoughts.

Zhu Di looked puzzled and didn't even know what to say.

Zhu Su buried his head in writing and drawing on the paper, as if he was about to do something.

Zhu Biao also searched hard in his mind for all the courses that Su Jing had taught him, trying to find clues about financial products.

"Berwin, have you heard of any financial products?"

Zhu Yuanzhang asked Liu Bowen who was on the side.

Liu Bowen shook his head and said, "Your Majesty, I don't know about it. If Mr. Su hadn't mentioned it today, I'm afraid the old minister wouldn't have heard of it in the future."

Zhu Yuanzhang was a little surprised and said: "This guy Su Jing can always come up with things that he has never heard of before."

Liu Bowen said: "Your Majesty, Mr. Su is a heavenly man, who can know it from birth. This kind of thing is normal."

"Heaven and man, my ears are calloused."

Zhu Yuanzhang waved his hand, as if he didn't care, but inexplicably remembered the conversation between Fengtian Palace and Su Jing in his heart.

Is Su Jing really a heavenly man?

In the study, Su Jing looked at the people who were thinking hard and said: "Don't think too complicated, financial products are just a name, they can have real objects or not, just like the purchase of banknotes comes from the authority of the court, financial products can also It is a concept, it is a product of economic development to a certain extent, you only need to know that financial products can be used as a medium to regulate the economy, how to operate, or how to do it, everything is too early.”

This course has reached the current point, and Su Jing also feels that he has talked too much.

No, it should be related to some concepts of modern finance. Although what Su Jing said is not complicated, it is still very different from what he has really learned before, and it is even wrong.

It's just that students who think about themselves have no foundation and can only use some simple examples to explain.

The core content of modern economics is far more complicated than what he described.

But there is no way, it seems that there is no way to directly use the mathematical theorems of the university to teach mathematics problems to junior high school students.

Some things, even if you know they are wrong, you can only say that they are wrong.

Daming's current level of education is like this, and Su Jing can only talk about it for the time being.

"Master Su, at what point will Daming's economy develop before we can understand what you said today?"

Zhu Biao asked Su Jing seriously.

Su Jing was stunned for a moment, thought for a moment and said, "I can't say for sure. Maybe there will be a chance within a few decades, maybe a hundred years is not enough. Who knows about the future development of Ming Dynasty."

According to the history that Su Jing knew, it would be impossible for the Ming Dynasty to perish.

But now, there might be such a chance.

This 'butterfly' flapping its wings lightly, Su Jing has no idea what kind of impact it will have on this behemoth, Daming.

But such an impact must have already begun, and everything can only wait for time to give the answer.

(End of this chapter)