socalfunplaces Page 454
Page 454
When there is a money shortage, the most direct feeling is that there is no money in hand, and all kinds of business activities are difficult to do.
Immediately afterwards, there will be the stagnation of the real economy, which will directly affect the security of the real economy.
The reason why this happens is nothing more than those few reasons.
The first point is the outflow of funds.
This situation is very simple, that is, all the money in some areas flows into the hands of one person, and then this person does not spend money, resulting in some money being held in his hands.
In this way, the currency issued by the country every year will be much less circulating in the market, which is not good for the economy.
Insufficient liquidity in the society has directly caused the business of those real economies to be severely hit, because the circulation of currency is greatly reduced. Under such circumstances, deflation is inevitable.
In fact, this inflation is still very easy to understand. The so-called inflation is the opposite of inflation.
Inflation is due to the excessive circulation of currency, which has caused the original very valuable money to become worthless. It is precisely this situation that degrades purchasing power.
Spending more money to buy things is manifested as a reduction in purchasing power, or a lack of it.
As the opposite of inflation, deflation is obviously manifested in the adequacy of purchasing power. The reason for this is that money is very valuable now, and you can spend less money to buy more things.
In this way, the money in people's hands will be much less.
If a society wants to develop steadily, it must treat inflation correctly, because proper inflation is a good thing.
However, excessive inflation can also lead to social instability, so there are two types of inflation.
The first is the benign inflation, and the other is the hyperinflation.
As for deflation, there is no difference between good and bad, because no matter what it is, as long as there is deflation, it is a bad situation.
There is very little money in the hands of people, so people's desire for consumption is not high. This situation directly leads to the decline of that consumption capacity, and even directly affects the development of the economy.
If no one consumes, there will naturally be a great depression that makes people nervous. Such a situation is very bad for the market, society, and the country.
And after such a situation happened, if you want to solve it, the state must intervene, because it is impossible to change the current situation with only one person.
Of course, such a situation is much simpler than inflation, and even after such a situation, he Cao Ang still feels that it is a good thing!
Chapter 388 Paper Money Replaces Metal Currency
This kind of situation can only show that the current commodity economy has developed very well. After so many years of stimulation, the commodity economy has finally reached a high point.
Such a situation is exactly what Cao Ang wants to see, but the current situation is also a problem that must be solved for him.
Afterwards, Cao Ang also asked, "Father, there is a money shortage. I don't know how you plan to solve it?"
Although Cao Cao doesn't know much about such things, he must have his own ideas, so Cao Ang also wanted to hear his thoughts on this matter.
After Cao Cao saw this letter, he felt very uncomfortable. This matter was not easy to deal with. Even Cao Cao didn't know what other things would happen if he started to deal with it.
This kind of situation has happened before, so what Cao Cao can do is to borrow what people did before.
Afterwards, Cao Cao also said in a deep voice: "In this situation, people must spend their money, or increase the amount of money. It is better to lower the quality of coins, or inject some impurities into copper, because now copper is more expensive. The demand is simply too great!"
"Also, while minting coins, we must also strengthen the mining of copper. Only by increasing the reserves of copper can we increase the number of coins!"
The reason why Cao Ang wanted to hear Cao Cao's thoughts was to see if Cao Cao would use the way his predecessors handled things.
However, after Cao Ang heard what Cao Cao said, he was sure in his heart that Cao Cao used two very common methods. No wonder Cao Cao was very troubled by this matter!
These two methods can alleviate this situation, but they are accompanied by other negative effects, which cannot be said to be the best solution.
For this point, Cao Cao must be clear in his heart, otherwise he would not be so entangled.
Because he was not so clear about the financial aspects, Cao Cao didn't dare to draw conclusions.
After Cao Cao finished speaking, Cao Ang also said to Cao Cao in front of him again: "Although these two methods can solve the problem, but the accompanying effects are not small, it is not the best solution!"
After Cao Cao heard Cao Ang's words, his face was a little helpless, and then he responded with some unhappiness: "Of course I know about such things, but I really don't know what to do now!"
Cao Cao was very straightforward, because he was not embarrassed about Zixiu.
Cao Ang then responded seriously: "Father, Zixiu has a better idea here!"
After Cao Cao heard what Cao Ang said, he was so happy. Cao Cao didn't think that Cao Ang could solve such a thing?
This is related to economic issues. If you don't have experience in this area, it is impossible to think of it!
Afterwards, Cao Cao also hurriedly asked: "I don't know what kind of plan you have, Zixiu, why don't you tell my father to hear it!"
In fact, after Cao Ang saw such a letter just now, he had a very shocking idea in his heart.
When he first thought of this method, Cao Ang was still a little uncomfortable, because in his opinion, this matter is not easy to solve.
At the same time, Cao Ang felt even more in his heart that if this matter did not succeed, it would have a great impact on society.
However, in order to solve the problem of deflation, Cao Ang has already made preparations in his heart. Even the forced landing of the plane has a lot of risks. The current situation is not much different from this.
Instead of waiting to die like this, or using a method with more negative effects, it is better to try the method you think of.
If this matter is successful, it will have an extraordinary impact on this dynasty.
"Father, under such circumstances, other methods cannot completely eliminate the negative effects, so what we need to do is to use a brand new currency!"
Cao Ang thought deeply, and then expressed his thoughts.
When Cao Cao heard this, he froze in place.
Replace old money with new money?
Can such a situation happen?
A situation like this made Cao Cao dare not even think about it.
Now people have a deep habit of using copper coins, gold and silver, and now a new type of currency is suddenly used to replace the copper coins and gold and silver in people's hands. How can people get used to it and feel at ease? Woolen cloth?
Leaving aside the question of whether people are used to it or not, the question of reassurance alone has made people resist.
What methods can be used to eliminate people's resistance?
Who will exchange the money in their hands for new coins that may not be useful?
Such a situation made Cao Cao feel a little worried, but he didn't say anything in a hurry, but said to Cao Ang again: "Since new coins are to be used, what kind of things can be used instead of copper?"
In Cao Cao's mind, he couldn't think of anything that could replace the use of copper, and he couldn't think of anything that could completely eliminate people's concerns.
If you think about it, the only thing you can think of is the existence of gold and silver.