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By Hu Ji Chuang

The book's illuminating proof and profound research display the noteworthy achievements in old China'seconomic inspiration, giving it its due within the historical past of global financial notion.

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We are not quite certain whether Fan Li was the sole creator of the theory, but we do know for sure that he was responsible for systematizing the theory in the discourses of "ji ran," attributed to Fan Li. The theory was developed on the basis of the achievements of astronomy at the time. Most scholars believe that scientific developments in ancient civilizations were generally motivated by the needs of agricultural production. sity of predicting the rise and fall of the Nile River gave rise to its astronomy.

Hence the conception of balancing off, say, the son coin with the mother coin simply means that if the public felt the circulating coin was worthless - in Shan Qi's sense small or "light" - relative to commodity prices in general, then a new unit of coin bigger or heavier should be issued. The newly issued coin, named by him as the mu, or "mother," would be taken as the new standard unit of account, and the so-called zi (son) coin already in circulation would have to adjust itself to the new standard coin.

Monetary problems closely connected with price and commerce and usually much discussed by ancient thinkers were not even mentioned by him. But in the history of the world's economic thought, for an ancient thinker to stress problems of price and commerce was in harmony with the general trend of the development of economic thought. In China in particular, Fan Li was perhaps one among a limited number of thinkers and probably the best among them to approach these problems. 41 Chapter Three ECONOMIC THOUGHT OF CONFUCIUS AND HIS SCHOOL The Confucian school, sometimes referred to as the "Ru" school, or the School of Literati, was the first and also the most influential school of thought in the history of China.

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