My life skills in Daming Liver

The purpose of separating the Mint Department from the Ministry of Household Affairs and establishing a new department is naturally to decouple monetary policy from fiscal policy, minimize the government's influence on monetary policy, and maintain a long-term stable monetary policy.

The most important thing in modern countries is finance. However, as modernization accelerates and the market becomes more and more complex, the number of economic affairs that the government can directly intervene in has become smaller.

This is easy to understand. For example, if a village originally only had one shop and one workshop, then the economic activities of the village would be easy to control.

Just stipulate the prices of the goods sold in this shop and the products produced in this workshop.

But if there are a hundred shops and a hundred workshops in this village, then there is no way to directly control the market just by relying on officials.

The same goes for the economy.

The richer a country's economic categories and the more frequent economic activities, the lower the government's control over specific economic affairs.

At this time, if we need to regulate the economy, we can only rely on economic policy and monetary policy.

The so-called economic policy refers to mediation tools such as taxation, law, and port policy. It also includes a series of measures that can have an impact on the economy, such as government-led investment.

The most obvious economic policy tool of this era is the shipping tax.

Export taxes will be levied on goods that are not expected to be exported, and taxes will be reduced or reduced on goods that are encouraged to be imported.

Tax reductions for industrial categories that encourage development and tax increases for industrial categories that are discouraged play a role in macro-regulation of industrial categories.

Today, the Southeast Department of Household Affairs is such a department.

In addition to economic policy, what can affect the economic operation of the entire country is monetary policy.

The only variable controlled by monetary policy is money.

If there is more money in the market, prices will rise. If there is less money in the market, prices will fall. This is the most economical and direct means of control.

Of course, modern countries can also control the entire economic market through interest rates.

By raising interest rates, residents can increase their savings and reduce overheated consumer demand.

By cutting interest rates, we can reduce the cost of using money, promote consumption, and reduce the risk of economic deflation.

It’s just that this is all in the future. The current Southeast banking system is still in its infancy. The interest rates of each bank’s bill number are still independent, and there is no department to guide the interest rate of bank bill numbers.

Therefore, in the era of precious metal currency, coinage is a monetary policy that affects the entire economic market.

Separating the mint department and reducing the intervention of the entire bureaucracy in mint affairs can strengthen people's trust in currency.

In fact, various central banks in later generations that claim to be independent are inevitably influenced by the government, and their so-called independence is nothing more than a cover-up.

But without this deception, or lack of a basic restriction, it would be difficult to put an end to the indiscriminate issuance of currency like the Ming Dynasty.

This is almost certain. As long as you mint coins and print money, all problems can be solved. Even saints can't control it.

The collapse of Baochao in the early Ming Dynasty verified this law.

Zhu Yuanzhang's treasure banknotes were originally promoted throughout the country through state coercion. Although treasure banknotes are not the same thing as modern banknotes, for example, treasure banknotes cannot be freely exchanged for other currencies, they are already considered the prototype of credit currency.

But when Zhu Di, the founder of the Ming Dynasty, began to spend money lavishly.

Zhu Di fought in the north and south, built the Forbidden City, and sent Zheng He to the Western Seas. The Ming court was able to sustain itself by continuously issuing treasure banknotes.

The result was that Zhu Yuanzhang's trust in treasure money was used up by Zhu Di alone.

Later emperors launched various campaigns to save the treasure banknotes, but in the end they could not be saved because of excessive issuance.

And this epidemic has persisted to this day, and Southeast Asia does not dare to launch a credit currency because the people are really scared of the treasure money.

Su Ze believes that the problem of excessive currency issuance may not occur while he is still alive.

But who can guarantee that spam will not happen in the future?

The mint department that can maintain a certain degree of independence can later be upgraded to a central bank responsible for formulating long-term monetary policy.

Su Ze said to Fang Wanghai:

"The Mint Department still needs to be independent from the Ministry of Household Affairs. In the future, minting matters will have to be reported and approved at the Constituent Assembly just like tax increases. This can be regarded as a restriction."

Everyone was shocked. They thought Su Ze was going to place the Mint Department under the cabinet and make it a department directly responsible to the cabinet.

Unexpectedly, Su Ze would directly link the Mint Department to the Constituent Assembly and become an independent department alongside the cabinet.

But it seems natural when you think about it. The Ministry of Husbandry is already the largest ministry in the southeast, and its influence is even surpassing that of the Ministry of Personnel.

After all, in the southeast, economic development is the most important thing, and the Ministry of Household Affairs, which is responsible for economic affairs, is the "source of running water" for finance. As long as the Ministry of Household Affairs is slightly tilted towards a certain place, an industry can start.

After talking about the coinage, Fang Wanghai talked about another thing.

"Grand Governor, what happened last time at the Shanghai Special Steel Market."

"There is public opinion here at Dali Temple. There is nothing illegal in buying and selling futures contracts. The income of Ren Fu and Lin An is legal."

Su Ze nodded. The Criminal Department led by He Xinyin was very busy. There were many affairs in the southeast, and new affairs would appear every day.

A large number of new areas require legal regulation, but there are still a large number of tasks that require specialized adjudication.

He Xinyin simply reorganized the Dali Temple, selected a group of officials who were proficient in law and jurisprudence, and recruited some scholars who studied criminal justice as consultants, and revised the functions of the Dali Temple.

In addition to reviewing death penalty cases, various local controversial judicial issues will also be sent to Dali Temple for public discussion.

Dali Temple will select nine officials to write their own opinions on the matter and write down their own handling ideas.

The public meeting formed by the opinions of nine officials is sent to the department that initiated the public meeting as a temporary legal basis for compliance and implementation.

However, Southeast is not a legal system that adopts precedential rules. Dali Temple will collect issues for public discussion and then propose the formulation of statutory law at the Constitutional Assembly.

"However, Dali Temple believes that this is the income obtained from the sales contract and should be collected according to stamp duty."

Because he was afraid that his colleagues would not understand the tax issue, Fang Wanghai explained: "Stamp tax is collected at the Port Municipal Shipping Department and is a tax for official notarization of contracts. Now it is also an important tax for the Municipal Shipping Department."

"Ren Fu and Lin An have subscribed to the stamp duty."

"But the Ministry of Accounts believes that private buying and selling orders are at risk of getting out of control, and issues involving pre-sales involve many parties. Once someone collects money, financial problems similar to insurance will occur, so steel futures trading has been temporarily suspended."