Inflation has gone hand in hand with the history of human civilization. In the era of metal currency, the inflation rate was acceptable, but the birth of paper money caused the inflation rate to rise like a rocket. China's Song Dynasty first issued banknotes, namely Jiaozi in the Northern Song Dynasty, which originated from the private sector. The convenience of Jiaozi led to a decrease in the circulation of iron money, which gradually became popular. However, the war disrupted the pace of economic development in the Song Dynasty, and Jiaozi entered a state of overdevelopment, leading to devaluation. In the end, Jiaozi was abandoned by the authorities and the market. The monetary system is an institutionalized agreement in a society and cannot transcend the power operation mechanism contained in it. It can not only contribute to the great power of currency, but also allow currency to self-destruct.