Money circulation in Japan in the 17th century: Background and evolution of the trimetallic system

The article analyzes the early stage of the evolution of Japan's monetary system — from the first copper coins to the formation of the trimetallic model at the beginning of the Tokugawa era. The first copper coins in Japan began to be minted according to the Chinese model at the end of the 7th century. They were used for monetary transactions and ritual purposes, but eventually fell out of use due to a shortage of raw materials and physical wear of the coins (the 987 decree banning the use of Japanese coins cites their wear as the reason; moreover, it orders the continued use of Chinese coins despite the weakness of commodity-money relations). For the next 600 years, Japan used coins produced in China. 
The discovery of silver and gold mines in the 16th century allowed Japan to start producing its own coins and led to the transition to a complex trimetallic money system. At the beginning of the 17th century, with the coming to power of Tokugawa Ieyasu, the process of centralizing the monetary system began. The article describes little-known details of the manufacture and use of gold and silver coins of that time, as well as an analysis of the historical context of the appearance of the first paper money and its official recognition. The depletion of the treasury, linked to the increased spending of the fifth shogun, Tsunayoshi, and economic development forced the government to carry out a monetary reform, during which 80% of all gold and silver coins were re-minted with a reduction in their precious metal content and a decrease in their nominal value. The reform contributed to an increase in the money supply and economic revitalization, although it caused inflation, price increases, and public discontent. 
The conclusion is that the evolution of monetary circulation in Japan was closely linked to the processes of political centralization and socio-economic transformation. The trimetallic system and methods of its reform became not only instruments of commodity exchange, but also an important lever of state policy, demonstrating the potential of financial instruments to stabilize monetary circulation and stimulate the economy. The article adds to our knowledge of Japan's economic history and the development of monetary systems in the early modern period. 

1. Fukai, Masaumi. (2012). Tsunayoshi and Yoshimune. Nihon Kinsei-no Rekishi 3 [Tsunayoshi and Yoshimune. History of Modern Japan, Vol. 3]. Tokyo: Yoshikawa kobunkan. (In Japanese).

2. Imamura, Keiji. (2001). Fuhonsen to nazo-no ginsen, kahei tanjo-no shinsho [The True Story of the Appearance of Copper and Mysterious Silver Coins]. Tokyo: Shogakukan. (In Japanese).

3. Kobata, Atsushi. (1958). Nihon-no kahei [Coins of Japan]. Tokyo: Shibundo. (In Japanese).

4. Kobata, Atsushi. (2013). Nihon kozanshi-no kenkyū [History of Japanese Mines]. Tokyo: Iwanami shoten. (In Japanese).

5. Matsumura, Keiji. (2007). Fuhonsen ga katarihajimeta koto [What the Fuhonsen Coins Told Us]. Bulletin of the Bank of Japan, 9, 28—31. (In Japanese).

6. Matsumura, Keiji. (2012). Wado Ginsen o Meguru Shiteki Kento [Problems of the Historical Approach to Wado Ginsen Coins]. Collection “Cultural Heritage”, Journal of Nara Cultural Studies, 92 (4), 367—378. (In Japanese).

7. Mikami, Ryūzō. (1996). Edo-no kahei monogatari [Tales of Edo Money]. Tokyo: Toyo keizai simposha. (In Japanese).

8. Murai, Atsushi. (2007). Kanjō Bugyō Ogihara Shigehide Shōgai [The Life of Kanjō Bugyō Ogihara Shigehide]. Tokyo: Shūeisha shinsho. (In Japanese).

9. Senoo, Morio. (1970). Waga Kuni-no Shihei Seido-no Genryū ni Tsuite [On the Origin of the Paper Money System in Our Country]. Monthly Reports from the Bank of Japan, 2, 4—15. (In Japanese).

10. Takizawa, Takeo. (1996). Nihon-no Kahei-no Rekishi [History of Japanese Coins]. Tokyo: Yoshikawa kobunkan. (In Japanese).

11. Takizawa, Takeo & Nishiwaki, Yasushi. (1999). Nihonshi Shōhyakka. Kahei [Small Encyclopedia of Japanese History. Coins]. Tokyo: Tokyodo shuppan. (In Japanese).

12. Toyota, Aritsune. (2010). Sekaishi-no Naka-no Iwami Ginzan [The Iwami Silver Mine in World History]. Tokyo: Shodensha shinsho. (In Japanese).

13. Yamaguchi, Kenjiro. (1996). Edoki Tsuzumi Kingin ni Tsuite [Packaging of Gold and Silver Coins in the Edo Period]. Financial Department of the Bank of Japan. Discussion Materials 96-J-3. Retrieved January 10, 2026 from https://www.imes.boj.or.jp/research/papers/japanese/96-J-03.pdf (In Japanese).