EconPapers    
Economics at your fingertips  
 

The Rise and Fall of Paper Money in Yuan China, 1260-1368

Hanhui Guan, Nuno Palma and Meng Wu

Economics Discussion Paper Series from Economics, The University of Manchester

Abstract: Following the Mongol invasion of China, the Yuan (1260–1368) dynasty was the first political regime in history able to deploy paper money as the sole legal tender. Drawing on a new dataset on money issues, imperial grants, and prices, we show that a silver standard initially consolidated the Chinese currency market. However, persistent fiscal pressures eventually compelled rulers to ease the monetary standard, and a fiat standard was adopted, leading to inflation levels which doubled the price level in less than a decade. We show that military pressure generated fiscal demands which led to over-issuance, and we reject the role of excessive imperial grants in triggering the over-issue of money.

Keywords: Paper money; silver standard; fiat money; Yuan China (search for similar items in EconPapers)
JEL-codes: E42 N15 N45 (search for similar items in EconPapers)
Date: 2022-09
New Economics Papers: this item is included in nep-cna, nep-his, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hummedia.manchester.ac.uk/schools/soss/econ ... npapers/EDP-2207.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:man:sespap:2207

Access Statistics for this paper

More papers in Economics Discussion Paper Series from Economics, The University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Marianne Sensier ().

 
Page updated 2023-01-03
Handle: RePEc:man:sespap:2207