My hotel is full of emperors throughout history.

"good!"

Chen Mo nodded and pointed to the cup in Zhu Biao's hand.

"The amount of stuff is still the same; there's not an increase in the number of items in my inn, but the amount of money has increased."

"Are you saying that money is worthless now?"

Upon seeing this, the emperors immediately understood Chen Mo's meaning.

Zhu Yuanzhang and Zhu Di, in particular, stared wide-eyed.

"So, does that mean our Ming Dynasty banknotes are worthless because we printed too many?"

Old Zhu seemed to be thinking about something.

"The money has increased, but our Great Ming Dynasty's output remains the same, and the resources haven't changed much, so the money is worth less, right?"

"good!"

Chen Mo nodded.

After hearing this, Li Shimin pondered for a moment and asked hesitantly.

"But ultimately, it's just a piece of paper! Why is it worth so much money?"

"Good question!"

Chen Mo snapped his fingers.

"Why is this money worth so much? This is what I meant earlier about national credit!"

Li Shimin seemed to have realized something and hurriedly spoke up.

"So, you mean I'm issuing this on the credit of my own country, that is, the Great Tang Dynasty?"

"good."

Chen Mo nodded.

"The people trust your Great Tang and are willing to use your Great Tang currency for transactions."

"Once you over-issue currency, the money will suddenly become worthless, the country's credit will collapse, and the people will no longer believe in it. Then it will just be a worthless piece of paper."

Chen Mo glanced at Zhu Di.

"Just like Judy said, even when you use it to wipe your butt, you complain that it's not big enough and doesn't feel good to use."

Chen Mo thought for a moment and then gave another example.

"In later generations, the currency issued by a certain bald man increased from 14 billion yuan to 5569 billion yuan in eight years, and reached 604 trillion yuan three years later."

"Prices at that time increased tens of millions of times. What did they become?"

Chen Mo thought of a joke.

"When someone goes to eat fried dough sticks, they must eat them quickly because money depreciates too fast, and the price of fried dough sticks can change at any time. If they eat slowly, they won't have enough money to buy more."

"We had to bring a huge amount of stuff even when we went out for a meal; eventually, it was even worth more than the money in the Heavenly Bank!"

"What kind of person could do something like this?"

Old Zhu's eyes widened.

He believed he had already printed a lot more money than he thought, but not as outrageous as Chen Mo had just described.

Chen Mo smiled.

"That's because you need to consider the national economy, but they're blatantly robbing people, forcing them to exchange their money to steal their hard-earned cash."

"The people have suffered, but they have taken off."

Chen Mo looked serious.

"Therefore, never expect those gentry families to do anything good!"

"There might be a small number, but definitely nine out of ten will be killed, with some escaping!"

Upon hearing this, Zhu Di scratched his head somewhat awkwardly.

Because he also over-issued the Ming Dynasty paper money.

Previously, when he was fighting in the northern deserts and needed money, he would print money at will.

That's it, the Ming Dynasty Treasure Notes have completely collapsed!

Of course, it's not entirely his fault; his father also bears some responsibility.

When his father was in power, the value of the Ming Dynasty paper money had already dropped by one-tenth.

Zhu Di glanced at Zhu Yuanzhang beside him, only to see that Zhu Yuanzhang's face was as black as charcoal.

"So how can we restore the country's credit?"

Zhu Yuanzhang couldn't help but ask.

"That's not difficult either; just open the exchange channel!"

Chen Mo looked at him.

"Old Zhu, do you only allow others to exchange silver and gold for paper money, but not others to exchange paper money for silver?"

Old Zhu blushed, but still nodded.

"So this brings me to what I'm about to talk about: the gold standard and silver standard of reserves."

"Gold standard? Silver standard?"

The emperors were once again dumbfounded.

"What is this thing again?"

"The so-called gold standard means that anyone who has the currency issued by us can exchange it for an equivalent amount of gold."

"That is, to link the currency you issue to gold."

Chen Mo looked at the group of emperors.

"I'm sure everyone knows the value of gold, right?"

"Of course I know!"

Li Shimin nodded in agreement.

Gold has always been incredibly precious, and this remains true even in modern times.

Unlike diamonds, which are ultimately made of carbon and disappear when burned in a fire.

Especially after the advent of synthetic diamonds in modern times, the price has dropped even further.

The price went up simply because some people's promotion linked it to marriage.

Gold is produced by supernova explosions and is simply brought to Earth by asteroids.

In addition, its chemical properties are stable, it is easy to store, and it has a shiny appearance, so it has been a hard currency from ancient times to the present.

Especially during times of war, no one knows if the currency will plummet, like the fiat currency of a certain bald man...

"Not only do you know this, but the common people also know it. From princes and nobles to ordinary people, almost everyone recognizes it."

"The gold standard, as the name suggests, is based on gold."

"The imperial court strictly stipulated that one unit of paper money, such as one dollar, corresponded to a fixed weight of gold. It also promised that anyone holding this paper money could exchange it for real gold at the Royal Bank at any time."

Chen Mo paused.

"The advantages are obvious: gold is rare, stable, and recognized worldwide."

"Once the gold standard is established and the commitment is strictly adhered to, our paper money will be equivalent to paper gold, with extremely high credit and stable value. The general public will accept it, since it can be exchanged for gold."

Old Zhu's eyes suddenly lit up.

He thought of a way to restore the value of the Ming Dynasty Treasure Notes, but his enthusiasm quickly waned.

Chen Mo glanced at him and continued speaking.

"However, the gold standard also has its drawbacks."

"The total amount of gold is limited, and mining it is not easy."

"If the economy develops rapidly and goods and services increase significantly, but gold production cannot keep up, it could lead to deflation."

Seeing the puzzled looks on everyone's faces, Chen Mo explained.

"In other words, money is worth more, and things are cheaper. It sounds good, but in reality, it will inhibit production and investment."

"Because money keeps appreciating, but the things are still the same, people are more willing to hoard money than spend it. Conversely, as mentioned earlier, the less money is worth, the more inflation occurs."

"That's quite vivid and descriptive."

Li Shimin murmured to himself, then looked at Chen Mo again and asked.

"Our Great Tang Dynasty doesn't have much gold to begin with, so what should we do?"

Chen Mo smiled and spoke.

"Therefore, the silver standard is more suitable for you than the gold standard."

"Because silver is easier to mine, has better circulation, and is used by ordinary people in their daily lives, and most importantly..."

Chen Mo chuckled.

"I know a place where there's a fucking ton of money!"

"where?"

Liu Che hurriedly asked.

Chen Mo looked at Liu Che and slowly uttered two words.

"Japanese country!"