Obviously, the key to government is circulation. Any act of hiding money or wealth is digging into the foundation of society. Could it be that the dynasty lasted only 300 years? It was all caused by Confucianism. As long as the nobles actively spent money and cracked down on all kinds of idle hoarding, the dynasty could continue to live. More extreme, the money supply determines people's income.煫
But this series of conclusions is too incompatible with Confucianism's wealth and frugality. For a moment, Shen Guangyuan felt that he was too rebellious.
Fortunately, there is a more rebellious teacher, and despite Zhu Geng’s gentleness, Zhu Geng’s research directly eliminated the theory of good nature. In comparison, Shen Yiguan himself didn't seem so weird, so he bit the bullet and continued his research.
As for what else is included in the circulation demand, Shen Guanyi has not figured it out yet, but has put a question mark next to it. This is the next research topic.
In addition, the relationship between total prices and total currency will have further implications. When the money supply cannot keep up with the total price or wealth, money is expensive and things are cheap, which further intensifies the benefits of hiding money. In the long run, the wealth in circulation will also decrease. The other is that when the money supply far exceeds the demand for wealth, prices will rise and prices will become expensive.
As for the relationship between the money demand and money supply of wealth, whether it is a one-to-one correspondence or something, we have to wait for further analysis.
Going back to the previous two questions, the first is total price and total currency, then the second one is naturally total price and total value.
On a micro level, prices fluctuate around fluctuating values, and this exists even if it is added up to the macro level. It’s just that the total price requires currency in circulation as a means of transaction. Then the relationship between total price and total value is actually the relationship between whether wealth through monetary transactions can satisfy people's utility.煫
What does it mean? Even wealth that may be traded in circulation may not necessarily produce much value.
In Zhu Geng’s previous microcosm, value is actually the utility of things to people. This effect must not only be useful, but also be felt.
However, different people use different items in different ways, and naturally feel different values. Even something that one person thinks is worth a lot of money, another person feels is worthless.
Then how to calculate the total value becomes a problem.
When we look back at the total price, we find that the price is determined by both parties to the transaction, not necessarily by the whole society, but the price formed by the transactions of a small number of people.
There is a problem here. Is the pricing of the small part accurate? The small part may be deficient in understanding and developing the use function of the item. Once the value recognition of different groups cannot offset each other, then due to the slow change of value Due to the characteristics of prices, society's mistaken overestimation or mistaken underestimation may be further maintained and magnified.
Until new functional understanding or other substitutes appear, the original value can be revised, and the economy of the entire society starts over and over again based on misidentification and correction. Only by allowing as many people as possible to comeBreaking the consistency of small groups and screening for misidentifications.煫
At this point, the roots of the basic economic cycle have been unearthed. The teacher said before that dynasties have cycles, but what does it have to do with economic cycles? This is the next topic.
Looking at Shen Guanyi, he has basically studied all the core issues of macroeconomics such as currency, inflation, and economic cycles.
Are all my disciples so scary? Just by swiping keywords and doing some early logic training, you can reach this level.
Gao Hanwen rubbed his eyes several times, checking the boxes while recalling the trivial knowledge he had learned in his previous life. Obviously, he felt that in less than ten years, he would fall behind his two disciples.
Although the disciple does not have to be inferior to the teacher, the pressure is too much. Please remember to bookmark it. The latest and fastest website can be read for free without anti-theft