Listening to Li Shimin let him talk in detail, Xia Hongsheng couldn't help but feel a little more nervous in his heart. Pen × fun × Pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

Any student of Jingyang Academy can explain these words when he hears them. Because they have already learned economic knowledge in Jingyang Academy.

In the future life, it is the level of high Chinese politics, you Li Lao Er doesn't understand, wahahaha......

After the bad taste in his heart passed, Xia Hongsheng cleared his throat and explained to Li Shimin: "These words are really a bit difficult to say, and you have to say them from the beginning. Let's talk about the market first, this father-in-law, you naturally know, is buying and selling. The market that the son-in-law refers to is not only the place of trading, but also the behavior of all transactions. The market has its own laws, in simple terms, that is, it causes price fluctuations due to changes in supply and demand. And this kind of price fluctuation can regulate the distribution of people in the transaction and various material conditions. ”

"It sounds a little difficult to understand, son-in-law will give you an example." Xia Hongsheng saw that Li Shimin was confused, so he explained: "Let's take cotton as an example." In the past, the value of this thing was not reflected, and no one wanted to grow it, so at that time, there were few people who planted cotton, and it was sold cheaply. Nowadays, people know that cotton can keep out the cold and can be spun into cotton thread and cotton cloth, so there are more people who buy cotton. There are more people who buy cotton, and there is a market for cotton, so now there are more people who grow cotton, and the price of cotton is also higher. This is the change caused by the relationship between supply and demand. ”

"There is also glass, in the past, we had less of this thing in the Tang Dynasty, everyone wanted it, but this thing is less, and the scarcity is expensive, so the price of glass is very high, and the Hu merchants came to Chang'an and brought more glass to sell." Xia Hongsheng continued to give an example: "And now that there is a glass workshop, more glass and glass are produced, and the price has dropped. This is also a change caused by the relationship between supply and demand. ”

Li Shimin understood and nodded.

In other words, when something is in short supply, it will naturally attract people to invest in it. And when there is an oversupply of something, it is natural for people to give up such things and devote themselves to other things. This is the regulation of the market itself. Xia Hongsheng concluded.

Li Shimin's mind is also shrewd, although he didn't understand it before, but after hearing Xia Hongsheng say this, after a little thought, he understood.

"Going back to the question of me, what the virtuous son means is that if the people who really want to go to Jingyang give up farming and go to business, then the supply of food will outstrip the demand. Food is in short supply, so people who need food will naturally pay more for food. And this willingness to pay more for the purchase of food has stimulated more people to turn to growing food to sell? Li Shimin asked.

Xia Hongsheng nodded, and Li Laoer's brain really turned fast.

Li Shimin lowered his head and thought about it, then shook his head again, and said: "What the virtuous son-in-law said, it can only be done when there is not too much shortage of food. If people don't farm, and there is no grain output, then they are willing to pay a sky-high price to buy it, won't they be able to buy food either? Because they have nothing to sell! ”

"It is worthy of my father-in-law, and I can see the drawbacks of this market regulation at a glance!" Xia Hongsheng slapped his ass and said.

When Li Shimin heard this, he waved his hand and asked, "Listening to the words of the virtuous son-in-law, is there another way to make up for it?" ”

"Back to my father-in-law's words, market regulation has its own drawbacks. It is mostly after the fact, with the price as a signal, but the change in the price will only occur when there is a contradiction between supply and demand, so there is no pre-adjustment function. And because of the pursuit of higher profits, where there are higher profit market opportunities, various market resources will spontaneously increase where, if not managed, it is easy to get out of control, but lead to oversupply. In addition, because market regulation is the spontaneous behavior of people involved in the market, it may not be accurate or beneficial to the overall market environment due to their respective visions. ”

"How?" Li Shimin sat up straight and asked closely. He already had a rough outline in his head.

"Macro control!" Xia Hongsheng also sat up straight and replied, "Hong, Da Ye!" Spectator, observe also! The so-called macro, in short, is the meaning of the big picture. Regulation is regulation, deployment and control. The so-called macroeconomic regulation and control is a kind of purposeful regulation and control of the market and the whole country's market and transaction behavior in view of the various deficiencies of market regulation by the imperial court from the perspective of the overall situation, and the comprehensive use of various means. ”

Li Shimin was shocked when he heard this, and thought quietly.

Xia Hongsheng didn't bother him, and let Li Shimin quietly comprehend by himself.

After a while, I saw Li Shimin's fingers curled, gently tapping the table with his knuckles, and slowly speaking: "Drought is a boat, and water is a car." It is the regulation of the market. Abundance is expensive, and hunger is cheap. It is the regulation of the imperial court! ”

Xia Hongsheng's eyes lit up, it seemed that Li Shimin had understood.

"Not bad! My father-in-law is really wise, and I know it in the blink of an eye! Xia Hongsheng said: "As my father-in-law said, when there is a great drought, we buy boats, and when there is a great flood, we buy horse-drawn carriages, so that they are lacking. This is exactly what the market regulates. In good years, merchants will lower grain prices and farmers suffer heavy losses, so the imperial court can formulate a policy to let all localities buy grain at an appropriately higher price than the market in good years. In the year of the poor harvest, when some merchants raised the price, the imperial court sold the grain at a price lower than the market, "hunger is cheap", so as not to raise the price. In this way, regardless of whether there is abundance or hunger, grain prices can be kept in a relatively stable state, and the market will not be chaotic. This is macroeconomic regulation and control. ”

"Let's talk about food. If there are too many people farming, the court can adopt some policy measures to discourage some people from farming, and if there are too few people who farm, the court can also formulate measures to make people willing to switch from other industries to farming. Not only food, but also other aspects, the imperial court formulated policies to guide people's business behavior under the premise of not interfering, so as to stabilize the country's overall economic situation and achieve the purpose of favorable economic development. Father-in-law, if market regulation and macroeconomic regulation and control go hand in hand and complement each other, the overall economic situation can develop smoothly. As long as the two are combined with each other and properly regulated, the things that my father-in-law was worried about will not happen. ”

Li Shimin stared at Xia Hongsheng, suddenly laughed, and said, "Hehe, these things, there are really many doorways in them. I can't help but think that I should also go to your Jingyang Academy and listen to the lectures with those students. ”

"Huh?!" Xia Hongsheng's eyes widened and he was startled.

Seeing that Xia Hongsheng was stunned, Li Shimin laughed again, but he laughed quite comfortably.