Abstract: The industry and commerce in Song Dynasty were well developed, so the issuance of paper money was also greatly developed. However, the Song Dynasty was faced with huge financial expenditure, and often could not make the ends meet. The Song government had to solve the financial crisis by issuing paper money excessively, which caused such serious social problems as paper money devaluation, inflation and rising prices. At the same time, the normal development of paper money was greatly hindered; how to manage paper money became an important problem in Song Dynasty. Such management ideas were proposed at that time: reserve must be prepared before issuing paper money; metal and paper money being used at the same time so as to win the trust of the people; control the amount of paper money in circulation so as to stabilize the prices; anti-counterfeiting of paper money, etc.. These management ideas can still give some reference to the contemporary society.

Key words: Song Dynasty; paper money management; paper money issuance; financial expenditure