Yuan Zhida Banknote Chaos and Inflation Crisis

Timeline

1. 1309Dadu · North ChinaTo fund palace gifts, river works, and military expenses, Wuzong ordered the minting of Zhida Yuanbao notes and their exchange for old notes. Note issuance surged; the court's finances were relieved in the short term, but inflationary risks were sown.
2. 1309–1310Circuits of the Central Plains · ChinaDepreciation of the new notes triggered sharp rises in grain and commodity prices. Barter and refusal of paper notes became widespread, merchants hoarded goods, the credit of the banknote system was badly damaged, and the socio-economic order was disrupted.