A Research Into The Evolution Of The Financial System For The Eastern Jin, Southern Dynasties

Finance is the management of money,loans,credit,and investment,especially on a national level.Finance has a profound and wide-ranging implication on different aspects including the politics,military,economy,society,etc,which comprehensively reflects the economic and social situation of that period.Research on the History of Financial as well as analysis of the evolution in financial system helps us understand the operational track of the economic development in ancient times.We can also learn from the past experience,and do better to the proceeding reform of financial system.During the period of Wei,Jin,Northern and Southern Dynasties,there were frequent changes of regime.Many omissions also occurred in historical records. Therefore,we know little about the specific circumstances of financial system at that time,which causes many problems and little achievement in research.This article attempts to use the economic analysis to research the evolution process of the financial system in the period of East Jin and Southern Dynasties,which is a new understanding to the financial development in Chinese ancient history and different from the traditional view of history.As early as the Warring States Period,Qin Dynasties had the formation of two sets of parallel institutions of financial management.Han Dynasties inherited the institution,which used Shaofu(少府) and Zhisuneishi(治粟内史) to control the royal family finance and the state finance respectively.But as the time went on,the boundaries between royal family finance and state financial was slowly confused. Since then,the Eastern Han Dynasty,Guangwudi(光武帝)merged Shaofu and put the royal family finance and the state finance into one part,the royal family income was put in national income areas.In Wei,Jin and Southern and Northern Dynasties period, Dasinong(大司农) was in charge of foodstuff storage and Shaofu was in charge of government-run handicraft sector instead of the revenue and expenditure management of tax and silk(�'�帛).Taifuqing(太府卿) covered the functions of Shaofu,become the new royal family and the state financial management institutions.The paper is mainly based on North's theory of path dependent,which attempts to analyze financial Institution during the Eastern Jin and Southern Dynasties period. Therefore,the paper aims to innovate from the basis of former research.In this paper, I use the IS-LM model to explain the purchase(�'�市) that happened in the period of South Qi.I think this way is a rare point of view on research.Finally,I get the conclusion that the effect of the purchase should not be exaggerated.After studying the change of financial system in the Eastern Jin Dynasty and the Southern Dynasties,I found that during this period,major change in the financial institutional was the strengthening trends of the separation in royal finance and the state finance.At the foundation of the Eastern Jin Dynasty,the development in South lagged behind the north,and the number of households controlled by government in the Eastern Jin Dynasty was far lower than that in the Western Jin Dynasty period. Hence the financial scale couldn't be too large and its proportion in the total output was not considerable,so the confusion of royal and national finance didn't cause big effect on economic development.After a period of peaceful development,the entire economic quantity expanded,and the scale of the state finance developed more faster after the "TuDuan(土断)","membership review(检籍)"by the rulers.Although the royal rulers had a strong impulse in expansion of finance,they must limit the royal finance due to the needs of the stability of the regime.That required to make a distinction between the royal family finance and the state finance and the monitor by the Government towards the operation of the state finance so as to increase the efficiency of financial operation and reduce waste.Although this process had gone through repeat,the impulse of the expansion by royal family's finances had always existed.But the force of separating the state finance from royal family finance was more powerful,hence the changes in the financial institution generally tended to move forward.The trend of separating the royal family finance from the state finance in the Southern Dynasties periods was more apparent after the reunification of Sui Dynasty. This provided the condition for the further evolution of financial institution in the Sui and Tang Dynasties.The Innovations in the financial institution,as an important component of change in social system at Eastern Jin and South Dynasties,act as a transition,which not only further improved the financial institution of that time,but also helped to increase revenue and reduce transaction costs.Meanwhile,the transmitting effect of system innovation also promoted the process of reunification by North and South objectively.In Eastern Jin Dynasty and Southern Dynasties period,the critical feature in politics was the ruling power that is possessed by special families(门阀).The family groups,as an important special interest group in the dominant group,controlled a lot of economic resources and played an important role in the process of institutional change.This is an critically influencing factor that can't be ignored when studying the process of institutional change in this period.Because the action that the Government sought to expand the state's finance and reduce the proportion of local finance directly impacted on the economic sources of the gentry,it was strongly opposed by them. However,the total political trend at that time was that the centralization of state power was further enhanced.The central government also strengthened the control towards the local finance that was charged by local dominant families.The outcome of the game between the Central and the local is that the Central won the game.That means the dominant family forces in Eastern Jin Dynasty gradually declined after the peak. However,as the biggest special interest group except the royal family,they still had strong political and economic influence.Owing to the vested interests,they sought to maintain the status that remained unchanged.That became one of the main reasons which caused financial institutional had difficulty to smoothly change.In addition,this article also researches on other respects such as financial relationship between central and local governments in the Eastern Jin Dynasty and the Southern Dynasties period and contrast between the financial Institutional in North and South,I think I could be more fruitful than the former achievement.