10000 ans d’économie : Antiquity to Middele Ages : 994
During the Song Dynasty, the shortage of metal coins and the practical difficulties in using bronze coins led to the development of « paper money ». It took on a major role in domestic transactions, gold and silver being used for international transactions. Because this paper money was not backed by a given quantity of metal, this resulted in high inflation. This invention is one of the « wonders » that Marco Polo brought back to Europe in his travel journal in the late 13th century. In Europe, the first banknotes were issued in 1661 by the Bank of Stockholm, founded by Johann Palmstruch, which went bankrupt for lack of sufficient reserves. Banknote issuance only became well-established in the 18th century in Europe.
Jiaozi, one of the first banknotes, used in the Sichuan (China) under the Song dynasty (960−1279)
Source : Garry-saint
Published on 07 October 2016. Updated on 13 June 2024