Datang: I am so happy to marry a disfigured princess!

Chapter 219 This is undoubtedly the best way to control Datang’s economy

What Lin Heng described is actually similar to the banks of later generations.

Every country, no matter how small it is, will have a state-controlled bank responsible for issuing currency and maintaining the national economy.

Lin Heng then explained the role of banks to Li Shimin. Once banks became popular in the local area, people in the Tang Dynasty would be able to get in touch with banks. People would save money in banks for many reasons, such as storing money and facilitating transactions.

Then all the royal banks can actually directly reflect the economic development situation within Datang.

And depending on whether the economic development is sluggish or prosperous, the country can adopt different policies to respond. For example, when the economy is sluggish, it increases currency issuance. More money flowing into the market can promote consumption in a timely manner, and when inflation occurs, it can reduce the suppression of currency issuance. Prices are all very simple.

Most fundamentally, the country's economy will no longer be fluctuated by local economic conditions, but will be controlled by the imperial court, which to a certain extent can avoid large-scale economic turbulence and general disasters.

For example, if the Tang Dynasty had a state-owned bank, Li Shimin would be able to use part of the money to provide disaster relief. He could even allocate resources and adopt macro-control based on the economic situation...

The emergence of an economic system means that it can spawn more economic circulation. Potatoes can solve the food problem, and productivity will naturally develop accordingly, which will gradually trigger business recovery, thus producing a series of chain reactions, which will be extremely Increase the national power of the Tang Dynasty to a great extent.

But the shortcomings are undoubtedly obvious. Once Datang's economy turns around, countless related industries will be destroyed, which is a financial crisis.

There is no such thing as the best of both worlds. There are always trade-offs in many aspects.

The more he listened, the more Li Shimin felt. If so, wouldn't it mean that he could do too many things?

But he had a doubt.

"If this is the case, then the value of the underlying currency is determined by the upper currency, and the value of copper coins is determined by the silver dollar. However, the reserves of silver are not small, so gold should be used as the standard for measuring money."

Lin Heng smiled and said: "Of course gold should be used as the standard of weighing, that is, the gold standard. The royal gold reserve determines the people's confidence in storing coins. With gold as the benchmark, the value of silver dollars and copper coins will not fluctuate on a large scale. The value of gold is guaranteed.”

Li Shimin chuckled: "Doesn't that mean people have to buy gold in large quantities? Once the country's gold reserves disappear, doesn't it mean that the big gold owners can control currency prices and economically harvest the people?"

Lin Hengda sighed with emotion: "I don't think my father has realized the principle of economic warfare now!"

"As gold is the standard currency, the country needs to control the bulk, and gold reserves cannot fluctuate. There will only be aggressive purchases of gold on the market. As long as the country's gold reserves are there, even if there is gold sold at a low price and they want to destroy the currency, The behavior of the market is actually the flow of gold as a commodity, not as a currency."

"Because the people know that the country's gold is sufficient, they will not use the gold on the market as currency, but only as a commodity."

The Chinese have an almost crazy obsession with gold. Once gold appears on the market, no one will think of it as money. They usually just buy it back to pass on the family line.

That's a commodity, it's inheritance, because they all know that copper coins, even silver, are issued by the state. They lose their value when dynasties change. But gold doesn't. The value of this thing has always been there in all dynasties. !

Therefore, as long as this concept is not broken, gold, as the country's currency standard, will not have the problem of low currency exchange rates, nor will it cause large-scale economic fluctuations. Even if it does, the country's gold reserves can immediately Supplementary.

Li Shimin thought for a moment, and then said: "There are too many of these things. Since your wound is almost healed, you must be able to write. When you finish writing, give it to me!"

Lin Heng's idea, in Li Shimin's opinion, is very feasible. It can not only control the economy of the country, but also use money to do many things. The key is that it can be used as the cornerstone of measuring national development!
Only in this way can we truly control the country!
Li Shimin's idea is also right. The military and politics of a country are secondary, and the economy is the most important, because it can promote the continuous development of economic and political.

When the economy is good, people will have the confidence to consume, which will promote the prosperity of productivity in various industries!Of course Lin Heng did not refuse. After all, he proposed the idea and planned to do so.

However, it will take a certain amount of time to do this.

Li Shimin was in a good mood, and the anger he had just had disappeared. After all, the plan proposed by Lin Heng was very effective for him.

He immediately stood up, patted Lin Heng's shoulder and said with satisfaction: "You have been recovering well during this period. Don't worry about the plan. I will wait and see the court's reaction when you submit it."

Lin Heng nodded, and then rolled his eyes. He must have finished the show. He cupped his hands and clasped his fists, his expression still showing some pain.

"I can't get up to see my father off, but I hope you will forgive me."

Li Shimin narrowed his eyes and smiled: "If it is true, then I will definitely not blame you. If it is false..."

"My son, I dare not lie to my father!"

"Forget it, I'm leaving."

Li Shimin immediately turned around and went out, calling Li Lizhi: "Chang Le, come back to the palace."

Li Lizhi was stunned for a moment and asked in confusion: "Father, won't sister go back with you?"

"Heng'er's injury has not healed yet. If Ning Xi wants to watch, just let her watch."

Having failed to achieve her goal, Li Lizhi felt a little frustrated.

This guy Lin Heng succeeded, and his father now hinted that he agreed. How happy would Lin Heng be?
Li Ningxi said happily: "Thank you, father."

Li Shimin glanced at Li Ningxi and said nothing, so Li Lizhi had no choice but to follow behind.

For Li Shimin, it is more important now to let Lin Heng write down the plan. He is also looking forward to what Lin Heng described.

What if Ning Xi is taken away and this guy gives up his job?
Anyway, this kid didn't dare to do anything out of bounds, so he just listened to Guanyin and let them get along.

But if the plan is delayed...

In the room, Li Ningxi asked curiously: "Lin Langjun, what did your father say to you?"

Lin Heng said seriously: "Father said he wanted me to recover from my injuries. He also said that it was thanks to you taking care of me that I recovered so quickly during this period."

Hearing this, Li Ningxi raised her fist and said happily: "Ning Xi will take care of Lin Langjun to get better!"

Lin Heng was very moved and opened his hands: "Where can I find such a good wife? Give me a hug..."

(End of this chapter)