The Sung and Ming paper monies: Currency competition and currency bubbles
Journal
Journal of Macroeconomics
Journal Volume
17
Journal Issue
2
Pages
273-288
Date Issued
1995
Author(s)
Abstract
This paper shows that the collapse of the paper money system of the Ming dynasty (1368-1644) was not due to a runway printing press but due to the existence of competing metallic currencies, which increased the interest elasticity of paper money demand and thus raised the possibility of self-generating hyperinflation. A leaning-with-the-wind feedback rule from prices to money supply followed by the Southern Sung government (1127-1279), however, seems to have prevented a self-generating inflation from arising. © 1995.
SDGs
Type
journal article