The night of Little New Year passed, and the sun shone on the earth again.
The Chengyi Alliance, Zhengyi Alliance, and Rongyi Alliance started selling clothes at special prices.
They rushed out a lot of clothes to sell before the end of the year, mainly because Li Chengqi wanted to take care of Bi Goo.
They also wanted to increase taxes for the government and let the people have a good New Year.
Everyone was happy that the people of the Chengyi Alliance could get the year-end bonus.
The Li Family Zhuangzi continued to provide loans, and the people slowly repaid them with low interest rates.
"Isn't the currency depreciating? Zhuangzi's interest rates are low, and when the currency depreciates, Zhuangzi will have to compensate. "
Princess Yongmu looked outside through the glass window when she was having breakfast. She was having breakfast with Li Yi in Wen Tian Lan Xiang Pavilion.
Today, Wen Tian Lan Xiang Pavilion is open for business, and there are two more days.
The two of them ate on the fourth floor. The newly built attic was connected to the opposite building by a two-way zipline. Once the situation is bad, they will run away immediately.
Her people were busy downstairs. There were so many rich people in the capital, and they all came to buy things.
"There are many factors that cause currency depreciation, such as lack of goods, demand exceeding supply, and inflation.
Also, there is a world where money is deposited in banks, and it has some similar business to gold and silver shops. It's like this … "
Li Yi explained to Princess Yongmu about banks. They have many more functions than the gold and silver shops in the Tang dynasty.
After introducing the situation of banks and other credit institutions, Li Yi explained the details of operations: "When the interest rates of deposits and loans are high, it means that inflation is serious.
The bank's reserve ratio must be increased, and this is called tightening of the money supply. The country's reverse repurchase will stop, and the interest rates will increase.
On the other hand, if there is deflation, the reserve ratio will be lowered, and the interest rates of loans and savings will be lowered. The central bank will increase the reverse repurchase.
There are also mid-term and standing loan facilities. At the same time, banks and other financial institutions will have overnight loans … "
Li Yi controlled the currency system. Why would there be depreciation?
"When we lend out money, it will depreciate?" Princess Yongmu listened attentively and understood.
"Currency depreciation is also a factor of productivity. The increase in raw materials and production technology will cause the price of goods to decrease.
When the price of goods fell, the purchasing power of money would increase. The increase in purchasing power would exceed interest. Not only would money not depreciate, but it would also increase in value.
The appreciation and depreciation of the currency depends on the price of necessities, such as food … "
Li Yi explained in a simple and profound way. He was just saying, not saying anything.
The purchasing power of a country's currency was the most important thing. If there was a shortage of goods within the country, then it would be transferred to other countries.
Using technological advantages to form an absolute trade surplus, thereby stabilizing the domestic currency value.
That was why the North American currency depreciated less than other countries. The more technology they lacked, the more their currency depreciated.
When a country's currency could be adjusted to another country's currency, it meant that the country's overall economic strength was not much worse than the other country's.
Generally, a country's GNP could barely reach 60% of the other country's.
However, if he had a complete industrial system, he wouldn't have to force himself to do it. Instead, he would be able to do it with ease.
The country that Li Yi was in at that time did it. Against the world's strongest economy at that time, the exchange rate increased and decreased at will.
Trade war devaluation is good for export.
When there is a large-scale disease, the exchange rate will increase immediately and stop you from buying things from me. If you want to buy, spend more.
Princess Yongmu stopped eating and stared at Li Yi with her eyes wide open.
"This is only a small part of governing a country. It's very small. Governing a country is difficult! To think of it in a good way, governing a country is like cooking a small fish.
However, you also know how many kinds of dishes there are. If one aspect is not taken care of, the taste will be different.
If the dishes are bad, they can be thrown away. If the country develops in the wrong way, many people will die. "
Li Yi concluded and sighed. He knew too little. When he had nothing to do, he had to look for information from the system to learn.
"Hehehe!" Princess Yongmu laughed foolishly. She wanted to see Li Yi's face when he was giving advice.
When Li Yi finished eating a circle, Princess Yongmu came back to her senses. "So you're saying that the money we lent out will be earned in the future?"
"Yes, but the money earned from lending will be subsidized. Not to the ordinary people, but to the industry, the Yi Alliance …"
Li Yi drank a mouthful of milk and talked about technology investment.
If he cooperated with the Yi Alliance and the Workers Alliance, he would give extra research funds.
It was mainly in the form of rewards. Whoever came up with a better management method and technology would be given money.
If anyone came up with an idea and thought it was feasible, he would be given money to conduct research.
He was not afraid of failure. If he succeeded once, it would promote the development of the Tang dynasty. Li Yi would not only make money, but also increase his lifespan.
"Li Lang, Lil 'Miss, there's a foreign merchant here. He said he has something good to sell to us and asked if we want it."
Xiao Lan ran up from downstairs. There were cake crumbs at the corner of her mouth. Obviously, she had eaten the cake for guests after breakfast.
"Did you bring it up?" Li Yi asked.
"He's outside the door on the first floor. He's a man. He said he will only take it when he sees the boss."
Xiao Lan stuck out her tongue and licked the cake crumbs off her mouth.
"Tell him not to." Princess Yongmu scooped a spoonful of egg soup and put it in front of Xiao Lan's mouth.
Xiao Lan opened her mouth and ate it, then turned and ran down.
Princess Yongmu waited for a few seconds and then asked Li Yi who was eating with his head down, "Li Lang, don't you want to know what it is?"
"No, I can have anything I want. If there's danger downstairs, it will affect my mood. It's just after the Little New Year. I don't want to kill anyone. "
Li Yi didn't want to take risks. You said you have something good, so I'll go and see you?
I'll go out to sea after the New Year. I have a yacht. What can't I find? I don't need foreign merchants.
When I gather all the seeds, you can only think of ways to get cheap food. I don't want jewelry.
Not long after, Xiao Lan ran up again with a tray in her hand. On the tray was satin, and on the satin was a porcelain plate. In the plate was a black dried abalone.
"This, he said he has a few. It's black. It was black when it was alive. He said this was given to us by God."
Xiao Lan had never seen this color of dried abalone before. She was quite curious.
"Where the kangaroo and koala came from? He's been there? Brush and ink. "
Li Yi pursed his lips. You lied to me, and you said it was given to you by God? What isn't given to you by God?
It's just Australia's black gold abalone. Do you think I don't know? Then my satin and porcelain decorations from the Tang dynasty are valuable?
Why don't you use a gloomy wood box with gold edges? It's best to decorate it with a few pieces of Lantian jade.
Xiao Lan happily took out the four treasures of the study and watched Li Yi paint.
Li Yi used a brush to paint the koala. The color of the koala was mainly gray and white. It was easy to paint. He just needed to adjust the ink.
When he finished painting, Xiao Lan and Princess Yongmu's eyes lit up.
"Li Lang, why is it so fun?" the two of them said at the same time.
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