What does this result in?
More money is flowing into the market, and inflation is intensifying further!
The market was thrown into chaos by the combined attacks of money-making and large-denomination coins.
There is another important reason, which makes matters worse.
What's the reason?
Because of war, reforms, and heavy corvée labor, social order was disrupted, productivity declined, and food production decreased.
The essence of inflation is that there is an excess of money in the market, while there are not enough goods.
With grain production declining and money prices skyrocketing, this is adding insult to injury!
If this was adding insult to injury, then the Northern Song court added a whole bunch of ice blocks on top of that.
What did you do?
Various "securities" were discovered, such as tea permits and salt certificates.
Merchants must first purchase these "securities" with money.
By the time of Zhao Huan, the financial system of the Song Dynasty was already on the verge of collapse.
If it weren't for the Jin dynasty's southward advance, which diverted domestic conflicts, the Song dynasty's financial crisis would have been on the verge of collapse!
Did the mess left by the Northern Song Dynasty end with the fall of Kaifeng?
Of course not, it still existed during the Southern Song Dynasty.
Zhao Huan knew that during the Southern Song Dynasty, a policy was proposed called "half in copper coins and half in paper money" for tax payment, which meant that half of the tax was paid in copper and iron coins and half in paper money at the time.
The imperial court used this method to collect paper money from the people in order to balance the amount of paper money in the country.
This method is actually the same principle as the "same tax on paper money" proposed by Zhao Huan.
PS: The financial crisis in the Song Dynasty was terrifying, as the resulting economic crisis cast a shadow over the entire dynasty. The source of this crisis lay in numerous flawed systems within the Song itself. Let's peel back the layers to examine what this "wealthy" dynasty was truly like.
I'm begging for votes!
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