초기 화폐경제시기 조선의 debasement 퍼즐

This paper aims to examine the effects of coin debasement on monetary volume in the Chosun Korea 1678~1798, when the legal copper coin money were issued and circulated nationwide for the first time ever in Korea. It seems that, contrary to the experience (debasement puzzle) of European countries, there was no significant monetary effect of coin debasement due to specific economic conditions of the Chosun Korea in this period; First, epidemic and nationwide money shortage phenomenon, second, the limited import of copper materials for minting coins by government from Japan, third, excessive mint costs of coin and governmental policy for keeping the stable value of coin relative to silver and commodities. Unlikely the European countries in the 13th~16th centuries, these characteristics of Korean economy nullified the monetary effect of debasement and provided economic environment for old and new coins to circulate at the same value at a time. Meanwhile, the 13~15th century’s experience of European countries shows that the debasement of gold or silver coins influenced money volume to increase when these coins circulated by tale, noy by weight. This increasing effect of debasement on money is called “debasement puzzle” in Europe. The recent studies explain the circulation of old and new coins by tale as one of reasons for this debasement puzzle. In debasement puzzle of Europe, when old and new coins circulate at a time with same tale value, people try to exchange old coin to new one to keep the purchasing power of old coin. If all coins are exchanged to new one, then money supply would increase. In Chosun Korea, however, old and new coins circulate at a time with same tale value due to money shortage, deflation and government policy for keeping a stable value of coins anchored to commodity prices. However, people could not exchange old coin to new one because of a high mint costs, government monopolistic minting, and reluctant behavior of Korean government to issue new coins. Then, these factor caused money shortage to be prolonged. The difference between Korea and Europe in explaining the debasement effect lies on the inelastic supply of money for Korea, unlikely for European experience. In 13th~16th century, European people brought in gold and silver voluntarily to mint coins whenever they needed for medium of exchange. Gold and silver can be purchased in free market by international arbitrage. The supply of coin material was elastic, and, thus, there was no money shortage phenomenon in Europe. Money shortage phenomenon, deflation and government policy for stability of coin value would increase the real value of new coins. Thus, people did not need to exchange old coin to new one. In addition, the excessive mint costs, reluctant Confucian attitude of the Korean government against using coins and commercial trades made minting coins rare occasions. The government monopolistic distribution system by levying tax in the more than 80% of all circulated coins made old and new coins both circulate easily at a same time with an equal value. Money shortage phenomenon in 1678~1798 had influenced the early monetary economy of the Chosun Korea as following. First, land owners and merchants hoarded lots of coins as a mean of wealth accumulation at deflation period, and thus, as a result, caused money shortage more harsh. Second, small farmers rented land as well as money to buy some foods and seeds at Spring period. But, they had to repay in commodities such as rice and fabric for their debts at Fall, harvest time. Farmers repaid for their money debt in high interest and high valued debt in real term by deflation. Deflation would put more real burden of money debt to small farmers. High valued debt in real term due to deflation and high rent devastated the farmers, and they ran away from their land at night to become a urban wage workers. The money shortage and deflation destroyed the Confucian view of social order in the Chosun Korea and did cultural philosophy toward more money-oriented view of society, as disordered the Confucian status class of society. These farmers sometimes joined several civil war against the Royal dynasty of Chosun kingdom. This study is the first attempt to historically examine the relationship between debasement and money volume in the early monetary economy of the Chosun Korea. This study also provides policy implications to the effects of the recent debasement of 10 Won coin, as well as issuing the high valued tender note of 50,000 Won and increasing usage of electronic money via internet web. As such, the effect of recent debasement of 10 Won coin on money would be relatively small, depending on the government policy for the stability of coin value and prices, and small share of total money volume. However, the issuance of the high valued 50,000 Won tender note and high usage of electronic money would increase money volume in this period due to very low issuing costs, high velocity of money circulation speed and high share of money volume.