How Ancient China Failed to Develop a Credit Money System?
How Ancient China Failed to Develop a Credit Money System?

Author(s): Shouyi Zhang
Subject(s): History, Economy, National Economy, Business Economy / Management, Economic history, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: paper money; money shortage; monetary system
Summary/Abstract: 2023 was the millennium since the birth of the paper money, the Jiaozi, which was issued in Northern Song dynasty. Paper money in China was invented hundreds of years ahead of Western Europe. However, China did not have a credit money system, due to the influx of silver from South America in the 16th century changing the course of history. This paper finds that, behind the "Great Divergence" between East and West, the most neglected answer is from a financial perspective.

• Details
• Contents