A New Explanation Of Needham Puzzle: A Analysis Base On Money-Price Distribution Effects

"Needham Puzzle" has always been explained by many experts in the academic field with emerging interpretations because of its strong theoretical charm and great practical significance. This paper tries to explain "Needham Puzzle", based on the theories of money, price and price distribution effects, and explains one important reason why China of Ming dynasty could not make itself successfully from the way of industry revolution, which is after the inflowing of American gold and silver, the money and the price distribution effects led to the deviaton of social wealth restructure in Ming Dynasty, causing regional gap of rich and poor, the slow development of industrial capital, the production enterprises in a state of diminishing return and diseconomies of scale, the restraint of merchant class, weakening the power of rulers. After a history of prosperity, China's national strength gradually declinined, and once was caught in a kind of stagnant state, in sharp contrast with the rapid economic rise of Western European countries. Now China's reform and opening up policy has lasted more than 30 years, with the rapid economic growth there has also been a number of problems. Learning from the history, reflecting on the "Needham Puzzle", there will be many inspirations and references to avoid the possible macroeconomic risks and institutional traps of money-price distribution effects in contemporary economy of China, and bring money-price distribution effects into playing a big active role in promoting the economic development.