In 16th century China, when state coin mints were closed as they sometimes were throughout the millenia, the demand for money would rise and the circulating money supply contracted. In these periods, private money (free coinage) rose to meet the demands of the economy for circulating media, and their issues (of varying substandard quality) would serve as money for periods of time. Rather than endure structural deflation and stalled commerce from hoarded coins, the people simply adjusted by circulating these unofficial petty coins at a discount same as they would with debased paper. This cycle played out numerous times. The state was often surprised at the preference of workers for cheap and elastic money to conduct commerce instead of full-bodied coin, as the latter would frequently find itself hoarded out of circulation rather than spent due to its value. excerpts from "Fountain of Fortune" by Richard von Glahn(𝐓𝐗𝐌𝐂)