‘CANNOT BE FED ON WHEN STARVING’: AN ANALYSIS OF THE ECONOMIC THOUGHT SURROUNDING CHINA’S EARLIER USE OF PAPER MONEY

Abstract

This article argues that Western impressions of the Chinese pre-modern monetary experience might have been excessively colored by Marco Polo’s favorable commentary on the stability of the Mongol polity and its dissemination of paper money. Experiments with unconvertible paper money had ultimately been no more successful in late-imperial China than they were in the early-modern West. By 1430, in fact, the Ming dynasty was forced to abandon the issuance of paper money altogether. The genesis of paper money both in China and it the West had originally emanated from private institutions. However, royally chartered banks of issue were conspicuously absent from the Chinese setting until the late nineteenth century.