Analysis of the Causes and Effects of Inflation in the Late Northern Song Dynasty in Ancient China

Abstract

The Northern Song dynasty was one of the dynasties with a highly developed economy in Chinese history. In the middle and late periods of the Northern Song Dynasty, the country had a serious inflation problem. This article mainly refers to and summarizes the literature, and analyzes the emergence of inflation in the Northern Song Dynasty and its impact on society from the perspective of economics through the demand-pull, cost-push and monetary factors from the historical facts. High spending on officials, the military, and the royal family has left the country in financial trouble. To get rid of the financial crisis, the continuous exploitation and oppression of the ruling class and the influence of the war severely destroyed the productive forces. To alleviate economic pressure and curb inflation, the wrong monetary policy adopted during The Period of Huizong aggravated inflation, and the economy was hit hard when money could not be tightened. Finally, the Northern Song dynasty collapsed under the impetus of many problems.