Datang is the first country to issue paper money in the world, and Feiqian is the earliest paper money in the world. This is the earliest paper money prototype in the world, and it is also the earliest paper money recognized and recognized by scholars all over the world since modern times. In the big cities of the Tang Dynasty, cabinets and flying money appeared.

The counter handles the payment of money and goods, and customers who deposit at the counter can send and pay money with book stickers (similar to checks). All these indicate the prosperity of commerce in the middle Tang Dynasty. At the end of the Tang Dynasty, because of the Huang Chao Rebellion and the war of the buffer region, the number of households dropped sharply, and the social and economic scale never reached the level of the prosperous era of Kaiyuan.

Inherited the tradition of taking silk as currency in Wei, Jin, Southern and Northern Dynasties, and implemented the monetary system of "money goes hand in hand with silk"-money is copper coins, and silk is the general name of silk products, including brocade, embroidery, silk, silk, silk, silk, silk, silk, silk. In fact, it is a diversified monetary system combining physical currency and metal currency.

Extended data

The amount of money circulating in society is determined by two links: currency issuance and circulation. Usually distribution is controlled by the state, and circulation is mainly carried out through banks. It is a basic principle of modern financial system that banks can create a large number of circulating currencies when they carry out housing mortgage loans and other businesses.

In an efficient financial system, as long as the country issues/recycles a small amount of base money, it can increase/decrease a large amount of social money through the credit expansion of banks.

Baidu encyclopedia-currency circulation

Baidu Encyclopedia-Tang Dynasty Economy