Research On Monetary System Evolution Of The Yuan Dynasty

As early as the Qin and Han dynasties period, Sang Hong-yang had put forward themonetary theory To pay money through market and The currency market. Alongwith the development of society, the money material also experienced a long history ofevolution: From shell, salt and other physical currency to the precious metals (such asgold and silver currency), to base metals (such as copper and iron), until modern time’spaper money. Today, mankind has already entered the information age, and maybe theera of electronic currency as the main currency will come soon. At the same time,associated with the monetary system, authorities had brought up attention to thecurrency material in Chun-qiu and Zhan-guo period. For example, Guan Zi hasproposed the monetary theory Rule the world by different kinds of coins. In the Handynasty, Jia Shan also have suggested that The distribution rights of currency can’t begiven to the people. The evolution of currency material directly affect the change of themonetary system, especially from the metal currency of real value to the paper moneyof valueless, leading the revolution of Chinese paper money system.On the basis of the Tang and Song dynasty practice, the Yuan dynasty implementeda wider and more complete system of paper money. On the one hand, this system has theepoch-making significance in financial history, letting our country walk in the forefrontof the paper money system practice. On the other hand, paper money systemaccompanied by severe inflation. It not only accelerated the collapse of the Yuandynasty, but also intensified the fear of paper money in the Ming and Qing dynasties,slowing down the progress of paper money system in the Ming and Qing dynasties andfinally let it fall behind of the western country. In today’s modern era, digital currencywill trigger the upgrade of monetary system again. In this background, discussing theevolution of monetary system in the Yuan dynasty and the experience of success andfailure, may let us know more about monetary system today.In this paper, we discussed the reasons of selecting the paper money system of theYuan dynasty and the thinking of paper money system practice of several evolution processes. Finally we come to the conclusion: the monetary system of the Yuan dynastymade up the gap of metal currency supply and it is also a natural continuation of theearly monetary experience, having the basis of the currency distribution. The system hasa number of advancing experience and the governance of inflation also burst withmonetary thought spark, which accumulated rich experience and lessons for theevolution of Chinese monetary system.Standing in the current society, the author made three-dimensional analyses for thefour times of the reform of the monetary system of the Yuan dynasty, analyzing its richhistorical experiences and lessons, which have important significance to the digitalcurrency system. But in this paper, the author just give a recommendation ofenlightening and principled for the question of monetary system under the new era,which cannot be directly used in practice(and this is the deficiency of this article), so weneed further analysis and research.