Editing Hongwu Emperor (section)

===Currency===
[[File:Ming Dynasty banknote.jpg|thumb|A Ming dynasty banknote]]
[[Inflation]] at the end of the Yuan era caused paper money to be abandoned in favor of grain as the primary medium of exchange. In 1361, the Hongwu Emperor began minting coins, but the small amount produced did not have a significant economic impact. Instead, it served as a symbol of political independence.{{sfnp|Von Glahn|1996|p=70}} In the 1360s, the government lacked the power to control the economy, so it allowed old coins to circulate and left price determination to the market.{{sfnp|Von Glahn|1996|p=70}}

After China was reunified, there were difficulties in circulating coins, according to officials, due to insufficient quantities. To address this issue, the government proposed reducing the copper content by one-tenth to increase the number of coins,{{sfnp|Von Glahn|1996|pp=70–71}} but the emperor rejected this idea and since mining could not keep up with demand, the government returned to paper currency ([[Banknote|banknotes]]) in 1375. This was intended to serve as the main medium of exchange, with copper coins playing a secondary role.{{sfnp|Von Glahn|1996|p=71}} Similar to the Yuan dynasty, the government attempted to promote paper money by prohibiting the use of precious metals or other commodities in trade, but unlike in Yuan times, paper money was not convertible into silver. As a result, its value rapidly declined.{{sfnp|Von Glahn|1996|p=71}} In an attempt to stabilize the currency, the government manipulated the money supply, alternating between halting printing and minting and printing at full capacity.{{efn|The mints were closed in the years 1375–1377 and again in 1387–1389. The printing of money was interrupted in the years 1384–1389 and stopped again in 1391,{{sfnp|Von Glahn|1996|p=72}}}} but this only led to an excessive amount of money being printed. For example, in 1390, the government's income was 20 million ''guan'' in banknotes, but its expenses were 95 million, which was even higher in reality.{{sfnp|Von Glahn|1996|p=72}} This resulted in the value of banknotes dropping to 40% of their nominal value by 1394, causing merchants to turn to silver instead.{{efn|In 1390, one ''guan'' was worth 250 copper coins in Jiangnan markets, a mere one-fourth of its nominal value, but by 1394, its value had dropped to 160 copper coins.{{sfnp|Von Glahn|1996|p=72}}}} In response, the government attempted to withdraw copper coins and once again banned the use of silver in commerce in 1397,{{sfnp|Von Glahn|1996|p=72}} but merchants continued to use silver as the measure of value, while banknotes became the means of payment.{{sfnp|Von Glahn|1996|p=73}}

The anti-silver policy can be seen as an attempt to weaken the influence of the wealthy in Jiangnan, who were previously supporters of Zhang Shicheng (in addition to confiscation, high taxes,{{efn|Five prefectures of Zhejiang contributed 1/4 of the total taxes of the empire.{{sfnp|Von Glahn|1996|p=73}}}} and relocation).The possession of silver was viewed as granting excessive independence to its owners in the eyes of the emperor. Therefore, it is understandable why the exchange of banknotes for silver was prohibited.{{sfnp|Von Glahn|1996|p=73}}