HST 197 Lecture 37: The Emergence of a Market Economy
Document Summary
Increased agricultural production, improved transportation systems, population growth, urbanization and industrial production combine to create a market economy in china. China"s various regions specialized in specific agricultural production or particular manufactured goods. Government bureaucracies played a large role in the distribution of staple foods such as rice, wheat and millet and dynastic authorities closely watched military sensitive enterprises such as the iron and steel industry. China experienced a shortage of copper coins that served as money in most transaction, To help with shortages, chinese merchants developed alternatives for cash that resulted during the height of rapid trading in even more economic growth. Letters of credit: known as flying cash, they enabled merchants to deposit goods or cash at one location and draw equivalent cash or goods elsewhere in china. Promissory notes: pledged payment of a given sum of money at a later date.
