In five minutes, let you know how the "banknote System" is used to search for your wealth.

A long time ago, there was a small village where there were 200 villagers and shells and currencies had not yet appeared in that small village, when fishermen can't afford to catch their own aquatic products
The surplus food or aquatic products are the original profits of farmers or fishermen, and the profit is the surplus products. In this case, the problem arises. rich farmers can't eat enough food, and rich fishermen can't afford enough water.
Production, it is impossible to accumulate a large amount of storage, because the storage of food and aquatic products will deteriorate and lose value after a long time. That is to say, profits cannot be accumulated for a long time.

　　The essence of currency-the debt that is not intended to be returned

In this small village, in order to maintain fair transactions, 200 villagers jointly cited a person capable of speaking as the village chief. If a dispute arises between villagers, the village chief will come forward for mediation. People do not know at first
What is currency? People only exchange the surplus products that they have produced and cannot use with other villagers in the way of goods and goods. However, there is a major defect in the ease of goods, that is, the surplus of A's
Product: If you want to change the remaining products of B, B Usually needs the products of C instead of those of A. Therefore, it is very difficult for people to exchange products, people's enthusiasm for producing surplus products is also affected, and the economy
Slow development and people's lives
The level is not increasing rapidly.

The village chief is a smart person. Although he hardly produces any surplus products, he thinks of borrowing. At that time, people could not write, but used different rope knots to remember. The village chief came to the river to pick it up
Back to some shells, Put holes and string them together to make a necklace look. He came to a's house and left the chain with his village logo and credit. He borrowed a piece of meat. Later, he used this method multiple times, from different people
They borrowed different foods and items. For example, if you use a necklace with 100 shells to borrow a ox or five sheep, use a necklace with 5 shells to borrow a clay pot or an ax. Almost none of these shell necklaces
Actually, the value is actually an overdue bill issued by the village chief. However, because people cannot do without the village chief's mediation after disputes, people are generally willing to lend their remaining products to the village chief, leaving a shell necklace as a creditor's rights.
Creden. Sometimes, some villagers also find the village chief who wants to use a shell necklace to replace the items or food they need. The village chief also breaks down the east wall to make up the west wall to meet the requirements of the villagers, and even the village chief mines it on the mountains.
Some gold and silver, as rare items, are returned to individual villagers who insist on cashing the necklace into practical objects.

Slowly, the village chief's shell necklace has a more reliable credit. More importantly, because these shells are suitable for decomposition and aggregation to calculate the transaction prices and transaction volumes of different quantities
Gradually spread among villagers. When a needs B's products, a finds B with the village chief's necklace. In exchange for the product, B can also hold the necklace, find C, and switch back to the desired product. Long ago,
The village chief became the currency of the village. Later, people gradually forgot the identity of shells and considered shells as wealth.
People who do not have shells hope to have shells because
Shells can be exchanged for almost any food or item they need. With shell currency acting as a lubricant for the economy, the exchange of surplus products becomes more convenient, and people are also motivated to produce more surplus products.
The economic development of villages has gradually accelerated. It can be seen that the original banknotes were issued by the village chief and were not all about to be returned. the wealth that was borrowed by the village chief and never returned formed the coin-casting tax revenue of the village chief.
Coin-casting tax is the root of instability in the free market economy.

Prototype of paper money produced by deception

Later, a smart villager found that some people had accumulated a lot of shell currencies and some others had delayed because of the lack of shell currencies, there are also some people who need to carry heavy Bay from B to do business.
The shell currency is inconvenient, so the smart villagers opened a bank in each of the places a and B. He promised to those who have accumulated a lot of shells and currency that they are not spent. If you put the shell currency in my money bank, you can make a lot of money.
If you want to pay a higher interest rate than the deposit interest rate, I can lend the shell currency to you; he is a business developer from location a to location B.
Promise: If you store the shell currency in the bank a, I will open a deposit order for you, as long as you take the deposit order to the Bank B, if you only pay a small amount of money, you can redeem the same amount of shell currency in B's warehouse.
Indeed, many people who accumulate shell currency put the shell currency in the bank, and many people who urgently need the shell currency turnover borrowed the shell currency from the bank, many people who do business from A to B only take the deposit slips of the bank.
Now, the era of heavy shell and currency is over. This smart person quickly realizes a well-off situation by earning the interest difference between deposits and loans and collecting remittance fees.

However, in this process, smart people discovered another big secret. With the increasing business volume and credibility of the bank, the deposit orders issued by the bank were gradually regarded as equivalent to the shell currency. People often do not use
Shell, and directly take the deposit of the bank for payment and settlement, even those who borrow money from the bank do not necessarily require the extraction of shells from the bank, instead, the bank only needs to issue a shell deposit order indicating the number of currencies. Therefore
The farce of life is: whether it is the existence of shells in the money village, the existence of shells in the money village remittance, or the borrowing of shells from the money village, you can use the shell deposit form issued by Qian Zhuang directly for money. Even
Qian Zhuang has no shell on his own: It only absorbs deposits of 100 shell currencies. Qian Zhuang can also open a deposit ticket to represent 200 shells, 300 shells, or even more shell currencies. Even money
Zhuang people can purchase physical wealth directly on the market with the deposit form they entered out of thin air, and no one will find and hold them accountable. In the face of the surging wealth, the bank manager
He was also scared, but when he thought that the village chief was using the coin-casting tax for free
After the work of others, you can feel at ease. When the deposit slips issued by the bank can also replace shells to act as currency for circulation, the Bank actually has the right to expand the currency in arrears, and indirectly obtains the income from the coin tax. This time
Hou:

Total amount of money in a small village = total amount of shells issued by the village chief + total number of deposit orders issued by Qian Zhuang

It can be seen that the money bank in the free market environment has achieved disorderly expansion of currency debt through deception. Although it has brought vitality to economic development, it has also laid a greater hidden danger to the free market economy.

Currency stability depends on the total amount of money supplied.

At the beginning, when the village chief borrowed food or items from the villagers as creden, he discovered a terrible phenomenon, when he sent out a shell necklace, he borrowed too much food or items and borrowed too frequently.
The total amount of shell necklaces in Villagers' hands is too large. It is difficult for a necklace with 100 shells to replace five sheep. In order to make a successful transaction, the holder of the shell necklace can only accept the token of the other party for the exchange of four sheep.
The fact that the price of the currency depreciates has risen. Sometimes, the holder of the shell necklace will find the village chief, hoping that the village chief will take back the shells and return the original food or items.
Chaos.

Currency stability is related to the total transaction scale of the real economy

The cruel reality has led the village chief to learn the consequences of being greedy. Since then, the village chief has paid special attention to the number of shell necklaces to be released, so as to ensure that the transactions of villagers are smooth and that each shell represents a great value and stability,
The villagers do not find their own troubles. However, the transaction scale between villagers is constantly changing. For example, a carpenter can only produce one table in the past day, but with his skill, he can do it in two days.
To produce three tables. If the transaction price remains the same, the transaction scale of the day caused by the craftsman alone will increase by 50%. If the carpenter suddenly fell ill, he could produce the same one in 10 days.
The price of a table is doubled because it is rare and expensive. Therefore, the transaction scale caused by this craftsman is reduced by 80% on average every day. Therefore, even the village chief cautiously reminds
You must implement a stable shell currency issuance policy, and still cannot cope with the ever-changing market changes.

Currency stability is related to the deposit rate (turnover rate) of the currency.

If there are 2000 shells in the village, the currency can be normally circulated, and the prices can be stable. However, the 2000 shells issued by the village chief have been sold for food or items, soon
If you continue to issue shells in arrears, the value of shell currency will depreciate. When the village chief was in a dilemma, a big dummies appeared. Some villagers can switch back the shells they need.
Almost any food or item, began to gradually store shells as wealth. After 10 or 20 shells are stored, the market cannot see any big fluctuations. When 200 shells are stored
After that, the market began to see a shortage of shell currency, specifically the appreciation of shells, product sales are difficult, the terminology is called effective demand or deflation. In the past, a cow sold 100 shells and started to become one
The ox only sells 90 shells and has no price. No one wants to buy them. Naturally, the village chief was overjoyed, and immediately launched 200 shell necklaces to the market, and quickly exchanged these shells into what he needed.
On the surface, the market has recovered its calm and a cow can sell 100 shells at a high price, but the bigger crisis is waiting for villagers in the village. Because although the actual purchasing power of shells has recovered to normal
But the total input volume of shells has increased by 10%, while the scale of the real economy has not increased, and the theoretical purchasing power of shells has dropped by about 9%. Therefore, the more shells that rich villagers store, the more goods
The slower the currency turnover, the less theoretical value each shell represents. When a crisis is about to erupt one day, the greater the damage, the greater the loss of people who store shells. Special instructions
The currency involved in the speculative turnover of the virtual economy, which is separated from the real economy, is also equivalent to the accumulation of savings.

Currency stability is related to the material reserves of currency senders.

After the old village chief's death, his son inherited his father's business and made a living by issuing shells. However, he was greedy. in a short period of time, he released too many shell necklaces, as a result, shells are greatly devalued, and many villagers
The old village chief's son was found to ask for a physical exchange. If the villagers return less than 5% of the total overdue bills issued by the villagers and want to redeem the REAL items, the old village chief's son can also use his home physical reserve to cope with such issues.
The villagers returned 10% of the total overdue bills issued by the two men and demanded the exchange of physical goods. The old village chief's son could barely deal with them by selling houses and real estate; however, when the villagers release 15% of the total debt
When I came back to ask for a physical exchange, even though the old village chief's son had been around for a long time, the old village chief's son could not cope with anything, so the villagers completely lost trust in Shell currency, the old village chief's son eventually
Angry villagers drove out of the village, and the shells became worthless. the wealthy people who once had the most shells and necklaces suffered the heaviest losses.

Currency stability is related to information-induced factors

If the total scale of the economy is easy to estimate, if wealthy villagers accumulate shells according to a steady growth pattern, if the village chief can also release shells synchronously according to the same general scale of the economy and the same consumption and growth pattern of the savings rate
The same amount of shells, if the village chief's material reserves are enough to cope with the run, but the small village will still see economic overheating and price fluctuations. This is like the relationship between a train ticket and a carriage seat: Assume that a carriage is
There are 108 seats, and 108 passengers are waiting to get on the platform. Each passenger has a seat number in his/her hand, the train stops at the platform for 10 minutes (enough for everyone to get on the bus in order ).
However, when the train entered the station, some people suddenly shouted that the train could only stay on the station for one minute. The tickets of the people who failed to get on the train would be voided and no refund would be made. Everyone will be in a rush to block the door,
Forming overheating. It can be seen that the small village currency is especially like a broken balloon, and the value is extremely unstable.