Most economists and historians today conceive of money in narrow terms –
probably because they have grown up in the modern world and are used to our
system of coins, paper notes, cheques and credit cards. Although economic
historians are generally aware that some earlier societies (in Africa,
Scandinavia and elsewhere) used other items as money, they do not usually
pay much attention to these examples. Few realise that the government of
China, governing an empire of some 60 million people during the Tang dynasty
(618–907), implemented a complex financial system that recognised grain,
coins and textiles as money. The government received taxes in coin and in
kind, produced to specific standards (specific widths and lengths of
textiles) that would then be redistributed, being used for official salaries
and military expenses among other expenditures. Although some of the
surviving evidence comes from the Silk Road sites of Turfan, Dunhuang and
Khotan in northwest China (where the dry climate has preserved many
documents and some actual examples of tax textiles), this multicurrency
system was in use throughout the entire empire during the seventh to tenth
centuries. At the time, Tang China was possibly the largest economy in the
world, rivalled only by the Abbasid Empire (751–1258).