Generals of the Great Song Dynasty.

Summary

Bashu, a land of abundance, had isolated transportation and a lack of precious metals, leading 16 wealthy merchants to issue the world's first paper currency, Jiaozi. The Jiaozi Office had a principal of 360,000 guan and issued 1,260,000 guan of Jiaozi with a reserve ratio of 28%. However, the government's continuous printing of Jiaozi led to devaluation risks and inflation. Wang Ning An discussed the benefits of inflation with Zhao Zhen, explaining that a certain level of inflation can stimulate the economy and lead to wage increases. He suggested that the power to issue Jiaozi be entrusted to the Royal Bank, with the quantity determined by the Three Departments, to ensure mutual supervision and checks. Wang Ning An proposed a plan to promote Jiaozi from Shu to the northwest, which would restore the currency value and create a win-win situation for Bashu and the Northwest. The plan involved building a direct road from Bashu to Han Zhong, extending to Jing Zhao Fu, and using Jiaozi to fund the road and procure supplies. Zhao Zhen was pleased with the plan, which resolved the Jiaozi crisis, addressed the source of Aoi Money, and revitalized the economies of Bashu and the Northwest. The plan also provided a significant rear support for the capital of the Song and gave Zhao Zhen an extra money bag, larger than the Three Departments combined.

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