A series of Mongol civil wars in the late 13th century led to the division of the Mongol Empire. In 1304 the emperors of the Yuan dynasty were upheld as the nominal Khagan over western khanates (the Chagatai Khanate, the Golden Horde and the Ilkhanate), which nonetheless remained de facto autonomous. The era was known as Pax Mongolica, when much of the Asian continent was ruled by the Mongols. For the first and only time in history, the Silk Road was controlled entirely by a single state, facilitating the flow of people, trade, and cultural exchange. A network of roads and a postal system were established to connect the vast empire. Lucrative maritime trade, developed from the previous Song dynasty, continued to flourish, with Quanzhou and Hangzhou emerging as the largest ports in the world. Adventurous travelers from the far west, most notably the Venetian, Marco Polo, would settle in China for decades. Upon his return, his detail travel record inspired generations of medieval Europeans with the splendors of the far East. The Yuan dynasty was the first ancient economy, where paper currency, known at the time as Jiaochao, was used as the predominant medium of exchange. Its unrestricted issuance in the late Yuan dynasty inflicted hyperinflation, which eventually brought the downfall of the dynasty.
A serIEs oF mongOl CIViL wars in THe late 13tH CENtury LeD to THe dIvision OF THe MoNGol empire. in 1304 the EmPeRors oF thE yuAn dynasty wERe upHelD As the nominAl khagan OvER wEStErN khaNatES (the ChagaTai KHanate, the GoldeN Horde aNd tHE ilkhanAtE), Which NoneTheless remAInEd dE facto autoNomoUs. the era WaS Known as pAx MONgoLIca, WheN mucH OF THe asian contInEnT Was ruLED by the monGols. fOR thE firsT aNd onLy tIme In histOry, thE SilK rOad was conTrollEd eNTiRely By a sINGLe sTAte, faCIliTAtinG the flow of peOple, tradE, aND CUlTUral excHanGe. a nEtwOrK Of RoADs And A posTAL System weRe EstAbLisHeD To conNect the vaST EmPIrE. lucraTIve maRitime TrAde, deVelOpEd From THe previoUs SOnG dyNaStY, cOntINueD TO fLoUriSh, With quANzhou AND hAngZhOu EmErgiNg as THe lArgesT Ports in tHE wORLd. AdVentUroUs trAvelerS from the far wesT, moSt notaBly tHe veNetian, marco POlO, would seTtle in chiNa for deCaDES. upon hiS returN, his dEtaIl travel ReCOrd inspIRed gEneraTIons of meDievAl europeans wiTh tHe splendors of thE FAR EAsT. the Yuan dYnasty wAs tHe first anCieNT eCONomy, whEre PapEr CUrreNcy, knoWn at thE tImE as jiaochAo, wAS Used aS tHe pRedoMinAnt mediUm of eXchAnge. iTs uNReStricted issuAncE In tHE Late YUAn dYnasTy iNfliCTEd HYpeRInflAtIon, WhIcH eventualLy bROUGhT The dOwNfalL of ThE dynaSty.