Original God, life in red Teyvat from scratch

Jiang Ming neither studied finance nor worked in finance. His limited understanding consisted of some basic concepts and some classic cases from his time studying political economy, with very little content.

But for Teyvat, it is enough.

After all, he stands on the shoulders of the giant of history.

"According to the suggestion of our Lord Jiang Ming, I suggest that Lord Ningguang read it first."

"Oh?"

Ningguang looked at the stack of papers with great curiosity.

[Mora is not a currency by nature, currency is naturally Mora]

She had already known this a few days ago.

Further down, she saw what she wanted to see.

First of all, based on her insights gained from her studies in the past few days, she already had a preliminary idea for a plan.

Currency does not have to be precious metals such as moula, nor does it have to be objects such as shells.

Money, after all, is just a general equivalent.

It can be paper or something else.

Rumor has it that the [rich] once experimented with a new type of currency called [charter tickets] at Merlot Peterbourg in Fontaine.

This may be the earliest paper currency to circulate on a large scale in Teyvat.

People at that time were not optimistic about this new currency.

And that is indeed the final result.

[Charter vouchers] have only circulated within Melopentsky so far, and [the rich] ultimately did not promote this new currency.

People all concluded that it was a failure, and that the rich man had suffered the biggest failure since he became famous.

And this aspect happened to be mentioned in this stack of papers.

Traditional Metal Currency, Morgan Standard and Credit Currency

Perhaps, the failure of the [rich] is not due to wild imagination, but because they are too advanced?

Chapter 42: A good cook cannot cook for a rich man without rice (revised, 4000 in , words)

Ningguang flipped through the contents.

The so-called Morgan standard actually corresponds exactly to her idea.

The Mora was used as the standard currency, linked to the Mora, and paper money was issued to replace the Mora for circulation.

If a person saves a large amount of Mora in Xumi or Mondstadt, he can then come to Liyue empty-handed, exchange it at the Northern Bank in Liyue, and then go shopping.

So where did Mora, the Northern Bank of Liyue, come from, and how could it be available for people from all over Teyvat to exchange money in Liyue, the commercial capital?

Trade will not be absolutely equal. It is not the case that the same amount of Mora from Liyue will flow to Xumi and the same amount will flow back from Xumi.

This is especially true for the seven kingdoms under the system of seven gods.

There's not even any talk of a trade deficit here.

Taking Xumi and Liyue as an example, Xumi imports a large amount of Liyue minerals every year, while the trade between the Ordinance House and Liyue is mainly based on grain, and the grain market has to be shared with Mondstadt.

The House of the Ordinances was spending more than it earned during this process.

This gap was filled by relying on technology and grain trade with Fontaine.

As for Fontaine, that is another matter.

Moreover, as an alchemical material, Mora is always in a state of being consumed, and its consumption varies in different regions.

This requires artificial intervention to fill the gap.

This complex system was previously completed by various caravans between countries.

It is not just ordinary trade and commodity exchanges, but also compensation for the Mora consumed for alchemical purposes.

There is a small caravan that specializes in transporting Mora.

But in Teyvat, a place that is not very peaceful, caravan transportation requires strength.

Because there are monsters everywhere.

The Liyue Thousand Rocks Army has done its best and fulfilled its responsibilities, but it can only ensure that the official roads in Liyue are not disturbed by monsters in most cases.

It is even more difficult if Mora is transported on a large scale.

Because they not only have to face monsters like the Hillilchurls, but also many people with bad intentions.

This results in extremely high security and protection costs during transportation.

Later, the Bank of the North emerged, backed by the Fatui, a militarily powerful organization.

They can complete the security and protection work at a very low cost, allowing Mora to circulate smoothly in the seven countries.

——Except Inazuma, of course.

In short, the Northland Bank successfully achieved cost reduction and efficiency improvement in Mora Transportation. In this regard, it not only wiped out a number of other caravan banks, but also successfully achieved cross-border operations.

Liyue wants to compete with the Northern Bank, but it probably does not have the strength to do so.

The Thousand Winds are not as powerful as the Fatui, nor are they spread across Teyvat.

Mora, a physical metal currency, is always bulky and takes up a lot of space.

In fact, Mora uses the divine power of Morax contained in it as its unit of value. The so-called 100 million Mora actually refers to "Mora containing 100 million units of divine power."

However, even if ordinary people can sense this kind of divine power, it is difficult to quantify it accurately.

Generally, in the golden house, the face value distinction is made.

However, there is an upper limit to the amount of divine power that can be contained within a unit mass.

When the required Mora exceeds this upper limit, the face value of Mora can only be increased by increasing its quality.

To put it bluntly, you just need to bring more Mora.

However, this implies requirements for transportation.

This brings us back to the starting point.

If you want to compete with the Northland Bank, you must first have the strength of the Fatui.

But now there is a turning point.

paper money.

Its requirements for transportation are greatly reduced, which perfectly fits the direction of reducing capital costs and increasing efficiency.

This seems like we can compete with Northland Bank?

The decline in transportation demand will certainly benefit Northland Bank.

But the more important point is that the cost of transportation will be reduced to a level that Liyue can accept.

For Liyue, this is a qualitative change.

This is a change of lane of competition, which in disguise weakens the advantages of Northland Bank.

In the past, Liyue could not afford this high cost. Only the Northland Bank could do so with the help of the Fatui. Liyue had no possibility of competing with the Northland Bank at all.

After issuing banknotes and reducing costs and increasing efficiency, Liyue's costs are still higher than those of the Northland Bank, but not so high as to cause a qualitative change and become unacceptable.

As for the Mora needed for alchemy, the consumption is not small, but in terms of circulation, compared with the amount required for trade, it is just a drop in the ocean.

In addition, there are advantages in other areas such as reducing the demand for transportation and releasing transportation capacity.

The most important thing is that after paper money came into circulation, although Liyue’s financial system still had a certain gap in starting point compared to the Northland Bank, it was at least on the same track.

Ningguang has now realized the importance of financial capital.

The most important thing is to be able to seize the initiative in this area back into Liyue’s hands.

Liyue also has the [Golden House] in her hand, which is a king bomb.

Ningguang believed that the [rich] had been able to come up with something like [franchise coupons] many years ago, and the rich must be able to see this.

There are indeed many benefits to the implementation of paper currency, but they have nothing to do with him.

Not only that, it will also indirectly weaken the advantages of the Northern Bank and ultimately benefit Liyue.

Because the [Golden House] is not in the hands of the rich.

The most important link in promoting paper currency and implementing the Mora standard is the Golden House.

The only place in Teyvat where Mora can be forged.

This is an advantage that the [rich] do not have, and it is also the confidence of Liyue.

As long as the [Golden House] is still in Liyue's hands, the initiative is in Liyue's hands, and the [rich man] will have no say.

No matter how much the [rich] do, in the end they can only be helping Liyue.

So, [the rich man] made a bold attempt.

Ningguang looked at the last contents on the stack of papers.

Credit Currency

Ningguang also understood credit currency.

This is the next stage after the Morgan standard.

Strictly speaking, it should be called a credit-based system.

Even for her, it is a very bold way to rely entirely on national credit issuance, not to be linked to Mora, to completely abandon Mora and to remove the anchor.

Although Ningguang does not intend to use credit currency directly in one step, she believes that if anyone on Teyvat can promote credit currency, it must be Liyue.

Is there still any need to doubt the credit of Liyue people?

Liyue is the kingdom of rock and contract.

Those who break their promises will be punished by eating rocks. This is the rule set by Emperor Rock King.

Everyone in Teyvat knows that the people of Liyue may be petty and tinker with the wording of the contract, such as the famous 600-80 Mora incident, but once the contract is signed, the people of Liyue will strictly follow the requirements of the contract.

Not bad.

Therefore, for the credit currency gameplay, only Liyue has sufficient credit.

It won’t work until winter.

The notorious organization of Fatui is even worse.

Therefore, the [Charter Vouchers] promoted by the [rich] in Melopensteed back then were probably the earliest credit currency in all of Teyvat. They tried to directly skip the Mora standard, bypass the Golden House, and bypass the restrictions of Mora, but it was completely unfeasible outside of Melopensteed.

Even with Northland Bank as a foundation, it won’t work.

Credit currency, credit currency, must be guaranteed by credit.

Where does the Fatui get their credibility?

In Melopentery, the [rich man] established order in Melopentery with his strong power. In the closed environment of Melopentery, his own strength and unquestionable status were the guarantee of the [charter voucher].

He said the concession was worth whatever it was worth.

Therefore, [Charter Tickets] can be circulated within Melo Petersburg and used for transactions.

But not without Mellow Petersburg.

I think that during the experiment in Mellow Petersburg, the [rich man] should have discovered this problem, so after leaving Mellow Petersburg, he did not promote it further.

[Rich Man] can be said to be a cook without rice, as he is restricted by the platform in terms of his ability to perform.

The golden house is not in your hands, and the fools who belong to you have no credibility at all.

Both roads are blocked.

Perhaps this is why the rich remain silent about the results of the [Special Voucher]

It is even possible that he is deliberately covering it up to prevent Liyue from discovering the feasibility of paper currency and thus weakening the advantages of the Northern Bank.