Money is a developing category and since its occurrence has undergone significant changes, which manifested in the transition from the use of one types of money to others, as well as in changing the conditions for their functioning and in increasing their role.
In some areas of money circulation and at various periods under certain conditions, various types of money are applied.
The predecessors of the money were separate types of goods used in exchange as equivalents. These equivalents served cattle, fur and even tobacco (in the state of Virginia, USA).
The development of exchange, its intensity led to the allocation of money as a universal equivalent, the material basis of which was precious metals and primarily gold. The advantage of gold money compared to other equivalents (livestock, furs) consisted in the homogeneity of the monetary material, its divisibility, preservation of damage.
The peculiarity of such money is that they have their own value and are not affected by impairment.
Under such conditions, it does not matter in certain measures to regulate the mass of money in circulation in accordance with the needs of turnover, which is typical of paper money signs.
However, there are considerable flaws in golden money:
- - high cost of using gold money, which cost much more than cash marks made of paper;
- - the inability to ensure the need of turnover with golden money, since the needs of money grow faster than the production of gold increases.
In connection with the marked, as well as some other reasons around the world, gold gradually ceased to apply gold as material for making money.
On the contrary, widely began to apply monetary signs from paper, including paper money and credit money (banknotes).
When moving from the use of full-fledged money to monetary signs, first of all appeared in the circulation of loan credit tickets. In the process of replacing full-fledged money, paper monk signs arose a problem of linking the aggregate mass of such monetary signs with the needs of turnover. The value of the solution to such a problem was due to the fact that when issuing money signs in circulation, the threat of their impairment arises, which does not happen when using gold money.
In this regard, it is important that gold coins are even small (which is also easily lost) have a significant cost, in connection with which difficulties have arisen when buying goods for a small amount. Therefore, a considerable part of the population (for example, in Russia at the end of the XIX century. And at the beginning of the XX century) preferred to use monetary signs that were freely exchanged for gold.
Gold coins, performing the function of circulation, are in continuous motion and gradually wear out. Their weight decreases, the distinction appears between the nominal and real content of the coin. However, continuing to be in circulation, the coin still realizes the prices of goods in accordance with their face value, since its function of the means of treatment is performed by fleeting. As a result, the coins become a sign, a symbol, a representative of its initial value. Therefore, full-fledged coins can be replaced by value signs, gold signs.
Paper money. These include such monetary signs, the main feature of which is not the fact that they are made on paper, but the fact that they are usually produced by the state (usually treasury) to cover their expenses. The inverse influx of paper money (treasury tickets) occurs when paying taxes and other non-tax payments. Treasury tickets are required for receiving payments, including goods, services, etc. Treasury tickets that have been produced in turnover did not have gold collateral. Such monetary signs were usually produced in our country by the Treasury bodies from the beginning of the NEPU until 1925.
The most important lack of paper money is that they are in turnover without the necessary linkage with the needs in monetary signs (for payment of goods, services and other needs). In this regard, since the release of paper money is due to the need for funds to cover the expenditures of the state (treasury), it becomes possible to excessive (compared to the need of turnover) the issue of such money in appeal, in which there is quite likely impairment of money, reducing their purchasing power.
Disadvantages inherent in paper money may largely eliminate due to the use of credit money.
Credit money (banknotes). They are also made of paper, but issues into circulation of credit money are usually produced by banks in the fulfillment of credit operations carried out in connection with various economic processes (the formation of stocks of inventory and material values \u200b\u200bfor their use, etc.). By providing a loan, the bank can issue its banknotes to the borrower: after the expiration of the use of the loan, the funds provided are subject to return to the bank to pay off loan debt. A portion of the loan debt arising during admission to a cash bank (revenue of trade organizations, etc.).
The issue of banknotes and their withdrawal from turnover occur on the basis of credit operations performed in connection with economic processes, and not in the expenditure and receipt of income by the state.
A feature of credit money is that their release is linked to the actual turnover needs. This involves the implementation of credit transactions in connection with the real processes of production and sales of products. The loan is issued, as a rule, to ensure that certain types of stocks serve, and the repayment of loans occurs when the remnants of values \u200b\u200bare reduced. Due to this, the linkage of the volume of payment facilities provided to borrowers can be achieved with the actual need for money turnover. This feature is the most important advantage of credit money.
When communicating with the needs of turnover, credit money lose their advantages and turn into paper banknotes. This is confirmed by modern money circulation experience in Russia, where banknotes come into appeal (emissive).
The most significant difference between such types of money, as credit money (banknotes) and paper banknotes, consists in the features of their release into circulation. Thus, banknotes are issued in contact with the credit operations performed in conjunction with the real processes of production and sales, paper money arrive in turnover without such linking.
Important in their meaning and consequences of their application are money non-cash turnover, The movement of which is recorded in the form of records on customer accounts in the bank (turnover occurs without monetary signs). The expanding application of such money is due to the number of their advantages, which includes the reduction of the costs of monetary turnover, by reducing such expenses as the printing of monetary signs, their shipment, recalculation, security. Considerable importance is to prevent the possibility of theft of monetary signs, etc.
The feature of cashless turnover is that operations with their use are carried out in credit institutions by records on the accounts of participants in the calculated operations. In such operations, cash turnover is replaced by credit operations.
Cashless payments are carried out in accordance with the established rules, the observance of which controls credit organizations.
The role of money is determined by their essence as universal equivalent, since the allocation of a specific product of a special kind on this role is the law of any commodity production. Money as such affect the economy according to the rules that are guided by banks, creating money. The role of money is manifested in the fact that the monetary system ensures the mobilization of financial resources and their most effective application, the reduction of costs in economic turnover, the unimpeded implementation of transactions, a rigid financial discipline, which all participants in the reproduction process are forced. Money is an integral part of a developed commodity economy providing a significant and continuous impact on the state of economic life and all economic processes. The money is mediated by the movement of enormous masses of goods, through the credit and financial system stimulate the development of the Company's productive forces.
At the same time, money may adversely affect the development of production, to cause serious disorders in the reproduction process leading to dangerous consequences in the field of social relations. The role of money is also to create and expand the mechanisms for the education of cash savings and the transfer of resources from savings to investors who can use these resources most effectively. The fact is that a significant part of savings is invested in physical assets (goods, gold) or sent to consumption, in fact, not giving profits from the point of view of economic growth. At best, temporarily free cash is available on credit in the inorganized market or are used for self-financing. With a low level and mainly the physical shape of savings suffer from investment.
Stimulating cash savings and improving the efficiency of their use is achieved by the development of monetary infrastructure. Substitution of direct links between savings and investors by bank mediation increases the ratio of the amount of money in contacting national income, which implies the release of real resources, accompanied by increasing the norms of savings and investments, minimally abdomen (scattered) for savings and investors through various monetary institutions (institutions (institutions ), increasing the degree of organization, the breadth of coverage and integration of the national financial market, because it begins to comply with the price mechanism. The above processes were called "Monetization" of the economy (the increase in the share of monetary turnover across the entire economy, in contrast to the natural exchange) and the "financial deepening" (the increase in the share of monetary transactions mediated by financial institutions).
Related to the group of benefits referred to services. However, in practice, goods are most often called beneficial goods that can be saved, stored, cheat, mix, etc.
Movement, moving goods from some owners to others, or, as they are considered to speak in the economy, the appeal of goods is unthinkable without complying with the equivalence principle (equality) of their value. Its implementation take place with assistance.
Economic role of money
In a market economy, the price of goods is based on its value with a possible deviation. The price of goods affects the ratio of supply and demand, as well as competition, which reduces the price of the goods. The pricing mechanism is aimed at raising, reduced costs. The money supply is equivalent to the nominal GNP, or, in a simplified form, is the amount of prices of goods, if not to take into account redistributive processes and the re-account of material costs, which is generally consistent with the quantitative theory of money. The use of money allows measures to link and achieve a balance of money income and expenses. Great in this role of state authorities, which can contribute to the expansion of the production of individual industries and goods by financing capital investments for these purposes, providing tax benefits.
3. Demand for financial assets - These are operations with real estate, (GKO, OFZ), foreign currency, deposits in banks, bank certificates, shares of companies. To purchase them require money "high efficiency", i.e. Cash or cash in the reserve of the Bank of Russia.
4. Interest rates on financial assets. Modern establishes feedback between the demand for money and the growth of interest rates of assets. In Russian conditions, this dependence is so weak due to the absorbing action of other factors. A high level of interest rates on financial assets maintains a high demand for demand for them, reduces cash demand and for. But at the time of the crisis of the stock market, financial assets are reset, and there is a rush demand for cash rubles and foreign currency.
5. Money circulation rate. The higher the rate of money circulation, the smaller, with other things being equal, the demand for money.
6. A combination of foreign currency factors. In our conditions, the demand for dollars exceeds the demand for rubles, which makes the urgent task of stimulating demand for rubles, so that the national monetary unit is the main objective in the activities of market subjects. Money is used to assess the profitability of export and import operations, on monetary calculations for these operations. Money is applied during calculations on credit and non-universal operations, in the preparation of the country's trade balance as a result of comparing the volume of exports and imports during a certain period, when summarizing in the form of an active or passive trade balance.
7. Needs leaving for the current financial turnover- This is the demand for money necessary for extended reproduction. The dimensions of real monetary demand are determined by the resource security of the subjects. The structure of the money supply in Russia does not take into account the shares of commercial banks and joint-stock companies, government debt obligations. The policy of state debt obligations is subject to the tasks of financing the budget deficit and does not affect the problems of the restructuring of the economy, overflow of capital from the financial in the real sector of the economy.
8. The demand for money depends on applications of modern financial and banking technologies, the clarity of the entire system of payment and settlement turnover. The demand for money is reduced after the introduction of an electronic method for translating securities from one owner to another.
9. Demand for money depends on intensity of money saving processes in the accounts of legal entities and individuals. The growth of savings expands the possibilities of using money in, as the growth of money is ensured by the fact that part of the previously released money is in the banking circulation. Given this property of money, many economists believe that the most important factor in the formation of demand for money is the demand for real cash balances, since the purchasing power of money is important for people, and not their nominal value. Taking into account the meaning of real monetary remnants, the effectiveness of the price factor is preserved. If you consider the main task to promote economic growth and welfare, the creation of incentives for population savings and their transfer to accumulation should contribute to the expansion of the borders for the growth of the money supply, financial support for expanded reproduction.
Thus, the demand for money is the demand for cash required for commodity treatment, foreign economic transactions for the implementation of financial transactions for the acquisition of government securities. The dynamics of the physical volume of products, as well as prices, is decisive effect on the demand for money. The basic basis for money demand is monetary balances in the accounts of market entities and the inclination of subjects to savings, confidence in the national monetary unit and to the credit policy of central banks. Different use of money and their influence on the development of the country are based largely on the fact that the products are produced by the subjects of the market are not for their own needs, but for other consumers it is sold for money. Produced manufacturing takes the form of goods, and commercial relations are made between the participants of the production and sale of goods.
Features of the manifestation of money in different models of the economy
The role of money in various economy models is as follows:
- the impact of money on improving economic activity;
- strengthening the interest of the subjects of economic relations in the development of production with the help of price and reduce costs;
- dependence of cash flows on income;
- control over the prices, volume and quality of goods and services.
With existing until recently in Russia administrative command economy The role of money was limited. The money was assigned an auxiliary role as an instrument of accounting and control by the management bodies. The volume and range of products was established by higher organizations for each enterprise in the form of plans in physical and value terms. At the same time, the value indicators of the planned volume and the product range had a subordinate value and were calculated on the basis of natural indicators based on the prices established by the central authorities.
Produced products were distributed between consumers. When selling products and cash payments, a subordinate role was assigned. With this model of the economy, the role of money is reduced, which is associated with the use of stable prices. Prices remained unchanged with various ratios of supply and demand and continued to be applied with the lack of goods and their normalized distribution. In such conditions, the depressed inflation arose, accompanied by a decrease in the role of money, since it was not so important for the purchase of goods that the buyer had the possibility of obtaining them in accordance with the established norms.
However, the use of money makes it possible to determine the aggregate costs. Comparison of the planned and actual level of cost allowed to assess the deviations of the actual level from the planned and apply measures to normalize it. The use of money made it possible to assess the implementation of the plan on the total product volume and develop measures to improve its implementation. However, despite the fact that the application of money increases the possibilities of accounting and control, it does not allow for money independent importance in the economy.
IN market economy The role of money increases significantly. This is due to the fact that the conditions of economic activity are changed, change to the guns and, there are new conditions for managing the processes of production and sales of products. In a market economy, commodity producers acquire independence in establishing the volume and assortment of products and sold products. At the same time, the role of money is strengthened, with their help an assessment of effective demand is given, with which the volume and range of products are formed. It is taken into account the considerations of the profitability of activities that take into account the price level of products produced and the cost level.
Increasing the role of money occurs in retail trade, in which the distribution of norms, coupons and crucial importance is played by the possibility of buying goods. Regulation of the economy from the state is not administrative, but by market methods.
Those 1. Institutions, institutionalism, institutional economics
1.1Shism of institutions and their role in the economy. Institutions and organizations.
1.2. Norma, rationality of behavior, interests and institutions.
1.3. Entities in the development of institutional theory.
1.4.Toria games and institutional economics.
The essence of institutions and their role in the economy. Institutions and organizations.
In the real economy, economic entities (households, firms) are under the influence of institutions, i.e. The aggregate of formal rules, informal funds, as well as spontaneously emerging rules and norms, the consequences of their non-fulfillment, which structure and stimulate the interactions and behavior of these subjects in the economic sphere. Such a definition of D. Norta (1994) includes a number of fundamental concepts:
1. Formal rules -these are the Constitution, Codes, Legislative Acts of the State, Legal Regulations in the field of property relations, budget, taxes, accounting, banking regulation, financial supervision;
2. N. emoformal Funds - generally accepted standards of business ethics, religious and moral installations and traditions adopted in this society, a business environment that are not formulated as mandatory for execution - honesty in transactions, condemnation of theft, fulfillment of obligations, justice in income distribution. Protestant principles ("Maxima") are well known: "Honesty is the best policy," "work as a means of rescue soul", "live to work, and not work to live" other people's money should not stick to our hands, "or Islamic denial of interest and encouraging help of the poor, Japanese Kösey - to live and work for the overall benefit, Confucian "management through virtue", American "time-money";
3. Spontaneous arising rules and norms - are characteristic of rapidly changing economic situations, for example, in currency and financial markets with very high volatility (variability) of their parameters - exchange rates, stock prices and bonds, dynamics of exchange indices (Dow-Jones, Nickey-225, S & P, DAX, MICEX -Rets). Thus, practical trade on Forex and in the stock market widely uses spontaneously arising rules: "Do not act without a trade plan"; "The market is always right"; "Come to the market or leave it before or after a strong movement"; "Trades with a margin exceeding margin at least 5 times"; "The most secure practice is trading along the medium-term trend"; The correct definition of the "StopLoss" level (cut off the loss) and the unconditional execution gives 95% of the success of trade; Losses from one operation should not exceed 5% of total capital, etc.;
4. Institutions initially can be formed spontaneously, of the general agreement, the "mutual consent" of many individuals with their consumer preferences - the money (the Institute of Money) appeared. But the majority of institutes are consciously created by people, individual preferences are formed under the influence of institutions (institutional environment), and the most important role in the formation and evolution of institutions belongs to the state. The state issues laws, ensures their action, punishes for non-performance, develops institutions of money (regulates money circulation), property rights;
5. Failure consequences And the mechanism of coercion to the fulfillment of rules and norms is three species: 1) the distinguished condemnation (shame, remorse of conscience, the feeling of guilt for their abnormal behavior); 2) reprisals (punishment) by society, states, counterparty, firms for illegal or opportunistic activities of economic agents; 3) pressure from those surrounding through public opinion, censure, independent media;
6. Institutions can be considered as sustainable social structures that are as external (exogenous) to economic systembut ongoing significant impact on its development - cause the economic system to function more or less efficiently, so internal, intrasystem elements characterizing relationships between agents. This can be illustrated by the well-known model of the economy as a football game (V. Riepka, D. North), which is regulated by official rules, informal means (not to cause injury to rivals, not to attack goalkeepers), the actions of a judge who punishes players for violating the rules. The real game necessarily implies violations of the rules and norms, the error of the judge. Similarly, the real economy is not only the rational actions of the economic person, the optimization of the manufacturer and the consumer, but also the irrational actions of economic agents caused by both external factors and internal - reassessment of the probability of success in uncertainty and risk situations, the underestimation of the opponent, the loss " Kuraza "from players.
It is widely used to explain the essence of institutions analogy with the rules of the road, which determine the procedure for the use of public roads, but are mandatory for owners of private vehicles. They also establish speed limits, fine values, etc.
Institutions are rules, organizations and social norms that contribute to coordination of human actions in the socio-economic sphere. The range of informal institutions extends from trust and other forms social capital (this includes deeply rooted moral norms defining social behavior) to informal mechanisms and coordination networks.
Formal institutions include codified legal norms and laws, as well as procedures and organizations producing and implementing these norms and laws that ensure their protection and punishing them for non-fulfillment. All this is stacked in the following scheme:
Fig. 1.1 Institutes, norms, rules for coordination of human behavior
The economic theory uses other definitions of institutions:
Institutions are defined as organizational structures. For example, they are talking about financial institutions banks, credit institutions, insurance institutes;
The concept of the institute is used in relation to a certain status, post: Institute of Parliamentarism, Institute of Presidency, etc.;
In theoretical, the game approach is considered equilibrium institutions in Game;
Institutions in the strict sense of the word should be distinguished from organizations. If you continue the "football analogy", then institutions are the rules of the game, and organizations are players, team players. In the institutional theory, the organization is defined as an economic coordination unit with well-known borders and the size functioning to achieve the goals of its participants and built on the basis of power relations between them. Organizations are: firms (Economic units of information) unions, Political party, universities, non-state (non-governmental) self-regulatory organizations, public clubs, sports associations. The main characteristics of the organization are as follows:
1) a set of participants in the organization;
2) the degree of coherence of participants with the goals and means of the organization (contracts, dismissal, strikes);
3) the formal structure of the power relations, taking into account complexity, procedures, decision-making rules;
4) separation of the functions of structural units;
If a institutions Created by people to maintain order, reduce exchange uncertainty and risks when repetitive interactions, organizations Coordinate human activity at the micro level, in the personalized, local boundaries with a clearly designated power relations between the participants of the organization - principles and agents. Agent. the performer voluntarily transfers, delegates principal (Guarantor) The right to make decisions, the right to control his actions. The agent should not be guided in his own actions in its own interests, he must focus on the interests of the Principal as part of a prisoner contract for hiring and confidence in principle as an effective person who makes decisions (LPR).
The organization contributes to saving transaction costs, but with an increase in the size of the organization, its complication, efficiency in saving costs for conclusion of transactions, search for information, monitoring and controlling agencies agencies decreases.From theoretical point of view, the growth of the company continues until the cost of organizing additional transaction inside Firms become equal to the exercise of the same transaction on the market(R. Kouz, 1988). This situation can be understood as action patterns of decreasing management limit efficiency and the existence of factors determining the optimal size of the organization (specificity of assets, resources that are difficult to find a replacement; the degree of uncertainty and risks of activity; the complexity of activities (transactions).
Firms as economic organizations are effective, because Protect the replacement external Costs associated with the exchange and price market mechanism, internal, significantly lower. Further, firms use cheaper long-term contracts, insuring the risks of uncertainty at the current volatility of prices for transactions. "Forming an organization and providing a certain authority (entrepreneur) the right to send resources, you can reduce market costs," wrote R.KOZ. Finally, in large international firms (MNC) is of great importance transfer pricing on intrafirma schemes and tax planninge, when taxes do not apply to intra-profit operations and products.
A unique organization is state. Although they often talk about the institute of the state, but it is more correct to consider it as organizationarising from the transmission of citizens of their rights to control activities in the fields of economics, politics, rights, social life, security. The state exercises legitimate right to produce public goods and priority benefits (defense, law enforcement, education, health care ...), tax collection and redistribution of income, coercion and punishment.
The state is primarily a political organization, but deeply introduced into economic institutions (see more detail the topic 2).
When the trade exchange was born for the first time, a difficult task was arose before the primitive tribes: as - in which exchange ratios - one tribe occupied, say, animal husbandry, will be able to exchange the surplus meat for grain, grown by another tribe for the exemption. It was impossible to find a satisfactory answer then. After all, there has not yet been any generally accepted equivalent (equal at the cost of goods), with which you can measure the cost of other goods. Therefore, the initial simple exchange of one useful thing to another was random and disposable.
Later, the goods began to be made in a wide variety. The owner of some product could clarify it into several other useful products, each of which served him by the equivalent. However, in this case, one thing immediately exchanged on another thing, which was not always satisfied with the sellers and buyers. If, assume, the owner of the fabric wanted to buy a fur, and the mechanic merchant needed meat, then the exchange became or impossible or too difficult. Such congestion in the exchange remains sometimes and so far under barter trade (direct exchange of goods on the goods).
When the production and exchange of goods became regular, in each country and in large economic regions appeared in local markets, general equivalents - the most running products for which other utility could be exchanged. For example, the Greeks and Arabs were cattle, the Slavs - Fur.
International trade requirements did not comply with various local equivalents. As a result, one - recognized by all nations - universal equivalent: money. To fulfill the role of money, gold is most suitable - a noble metal with great safety. The gold also has other quality necessary for the universal equivalent: divisibility, portability (due to the large specific weight of gold was required less compared, for example, with copper), the presence of sufficient amount for exchanging (more noble metal - platinum occurs in nature less often), the greater value (mining of one gram of gold requires great masses).
And so, money is a special product, which is the only universal equivalent. With the advent of money, all the market economy passed into a qualitatively new state. The commodity world split into two poles: on one side, the entire combination of consumer values \u200b\u200bfocused, and on the other - money expressing the total value of all goods.
Since the money (gold) themselves are a generally recognized embodiment of the cost, they act as a reference measurement of the value of all goods, to be measured by the cost of universal social labor. In other words, the money becomes the direct expressive of public relations between people (the relationship "man is man"). All this gives the money with such a public strength that can create and welcome if faithful to people and evil, when money serves as a means of oppression and humiliation of a person.
The economic essence and the role of money is manifested in their functions.
First of all, the money performs the function of value measure, that is, the cost of all goods is measured. The cost of things expressed in the money is its price. To determine the product price, the money itself is not required, since the goods seller sets its price mentally (perfectly expresses the cost of money).
Prices of goods are expressed in the known number of money products - gold. The amount of gold, its mass, is measured by weight. A certain weight of gold is taken per unit of measurement of its mass. This unit is established by the state as a monetary unit, called the scale scale. The scale of prices and its brief parts are used to measure the mass of gold. All prices of goods are expressed in a certain amount of monetary units or that the same, in a certain amount of weight units of gold. So, in the USA, the scale of prices until 1971 was a dollar that could contact gold on official parity for central banks and foreign governments equal to 0.818513 grams of pure gold. In Russia, the ruble was the monetary unit, the weight quantity of which was determined in 1897
0.774254 grams.
The scale of prices originally coincided with the weight scale. In the future, the price scale was altered, which was due primarily with the damage of coins, by introducing foreign money into circulation. Monetary units (pound sterling, livre, hryvnia, etc.) preserved the former name of weighing units, but in fact gradually began to contain a significantly smaller amount of precious metal. Now the golden currency content is officially canceled at all.
In the function of the means of circulation, the money acts as an intermediary in circulation, which is carried out according to the formula T (product) - d (money) - T (product). In this case, the money is not delayed long in the hands of buyers and sellers and go from hand to hand, performing the function of the means of treatment is fleeting. This circumstance ultimately led to the replacement of full-fledged money in defective.
Initially, the function of the treatment of gold was performed in the ingots. In order not to weigh the gold in each sharing act, first individual merchants, and then the state began to give small gold ingots of a certain standard form and put the corresponding stamp on them. Gold as money received the shape of the coin.
When applying, the coins are gradually erased, losing in their weight. However, they were taken on the market as full-fledged money, although the amount of gold contained in them was gradually decreased. As a result, the actual content of gold in the coin separated from its nominal content (indicated on it) content. The state itself began to replace a full-fledged gold coin on an infallible, minted, silver or copper sign. This practice later led to the release of purely nominal signs.
cost - paper money as substitutes for metal coins.
This has been proven that full-fledged money when the function of the reference means can be replaced by the cost symbols.
If the seller got money for his product, but did not immediately spend them to buy things to buy it, the process of circulation is interrupted. Then the money starts to perform the function of the treasure formation tools: they accumulate as a representative of wealth at all; The treasure function is performed not only gold coins, but also ingots, products from gold, that is, the money material itself in all its views.
Gold was withdrawn from circulation and turned into a treasure only in the early stages of the development of the commercial economy. The fixed treasure does not bring income, and therefore all the money began to be started in turnover to obtain their growth. Now the treasures are accumulated in banks, which, through a loan, find them profitable application.
When selling goods on credit (in debt with a delay of payment) Money performs the function of the payment agent: they pay for the previously acquired goods when the debt repayment occurs. In such a role, money is used and outside the sphere of commercial circulation: when wages are paid, all kinds of financial liabilities are performed (on loans, taxes for rent land or premises, etc.).
Debt obligations generate a new form of money - credit. The manufacturer who sold goods in debt receives from the buyer bill (debt obligation), which can use instead of money to pay for a thing purchased from a third party. However, such bills are used limited because they are guaranteed only by property of one owner. Durable guarantees began to provide banks, which instead of private bills - with a certain benefit for themselves - began to produce banknotes (or bank tickets). Unlike bills of interests of commerces (merchants), banknotes were produced on round sums, had gold security, possessed a wide ability to appeal. Along with the banknotes, other types of credit cards are involved in the turnover - checks. The check is an order to the bank, discharged by the cash deposit, about issuing money from his account to the face specified in the check. Checks have a short circulation.
The development of credit relations create the opportunity to repay debts by mutual testuisions of debt obligations. This reduces the need for cash.
International Trade is carried out by world money: the latter began to perform the universal equivalent in the economic relationships of all countries. On the world market for a long time, money dumped all its "national uniforms" (mint, paper and credit money of individual states) and performed in a natural form in the form of gold bars. Gold was a measure of value and used in the world market as a universal payment tool. In trade transactions between countries, goods sold large wholesalers, and calculations were performed mainly by testing debt obligations through banks. Cash gold was transported from one country to the other only if the debt obligations were not rejected by mutual calculations. Then the money performed on the global market as a universal payment. There have been such cases when the international commodity transaction was paid for in cash: here the world money was a universal purchasing agent.
Money moves from one country to another occurs when entrepreneurs translate their money to store them abroad. In this case, the money act as public materialization of wealth.
In the XX century, interstate economic relations developed widely. The currency (monetary unit) of the country that has a high proportion of international trade and provides significant loans to other countries receive an advantage. Calculations between states are carried out in the national currency holding a dominant position in the global payment processing. At the same time, an indispensable condition is recognized: the dominant currency unit represents a certain amount of gold.
With the development of world economic relations, various international calculation means, replacing gold appear. However, the currency representing global money and various means of calculations should be freely reversible in gold. When such reversibility stops, the crisis of the payment turnover comes.
When a commercial exchange was born for the first time, a difficult task was arose before the primitive tribes: as - in what exchange ratios - one tribe occupied, let's say, animal husbandry, will be able to exchange excess meat formed from him
Money is a special product that serves as a universal equivalent.
Money arose spontaneously in the process of developing commodity treatment, when surplus goods arose. Initially, the volume of goods produced was relatively small and the exchange of goods between tribes was random (all produced goods went to consumption) and was carried out in kind. Gradually, the volume of production increased and excess the goods began to appear. The exchange began to wear a constant, massive character. There was a need for a special treatment tool, with which it was possible to exchange one product quickly and with minimal costs to another. Money has become such a means of circulation (the first money function is money as a means of circulation).
The main property of money is absolute liquidity.
Liquidity is a measure of how quickly any asset can be exchanged for cash.
The monetary system cannot exist without money. It covers all the monetary relations that add up in a particular society.
In the system of cash relations, three subsystems are distinguished:
Functional;
Economic;
In the form of cash flows.
Functional subsystem
Money is a means that expresses the values \u200b\u200bof commodity resources participating in this time in the economic life of society, the universal embodiment of value in the forms corresponding to this level of commodity relations. Such a definition is built on the concept of value, which is more consistent with the adopted in world science approach to money.
In another definition, money is an absolutely liquid exchange tool that has two properties:
Exchanges for any other product;
Measures the cost of any other product (this function is expressed in price and on the scale of these prices).
The essence of money is revealed in five functions:
Measures of value
Tools of circulation
Payments
Means of savings and accumulation
World money
The measure of cost is formed in the formation of the price, it determines the cost of goods, which is measured by money (i.e., equating goods between themselves). Thus, quantitative compulsion is obtained.
Money measurement cost - price. It depends on several conditions:
Production conditions;
Exchange terms.
In order for prices to be comparable, they must be brought to a single scale.
Price scale is the weight content of gold or silver fixed as a unit of measurement.
As a measure of value, money can act as countable, speaking in the form of numerical values. Accounts are used to express prices, accounting and analyzing, conducting accounts of participants in economic life.
Tools. The monetary expression of the value of goods does not yet mean its implementation. Exchange must occur. Money - Intermediaries when exchanging from the start of the transaction (T - D) before it is completed (D - T). During the prevalence of trafficking, the money was mainly acting as a means of circulation; After the emergence of the loan and the development of the economy, the function of the payment means of the payment, which includes the function of the means of circulation and is transformed into the function of the calculation means. This contributes to the use of plastic cards and other electronic calculation tools, allowing you to pay through the transfer from a bank account, as well as the implementation of wholesalers and retail purchases.
Payment Means - Payment Time does not coincide with the payment time, the goods sell on credit, with a delay of payment
(T - O and O - D).
Means of accumulation - cash reserve (balances in accounts, gold and foreign exchange reserves). Money performing the accumulation function is involved in the formation, distribution, redistribution of national income, population savings.
World money is used in international calculations.
In a modern developed economy, there are three functions of money - a measure of cost, means of accumulation and means of calculations, and the means of appeal remains in very small sizes.
Economic subsystem
Financial system:
Distribution of money in the country;
Budget formation in the country.
Credit subsystem:
Regulates internal and external debt;
Forms loan capital;
Associated with the circulation of securities;
Related to international credit and currency relations.
Currently, the issue of money is not used to cover the deficit of the federal budget. But if there is a federal budget deficit, the government should find sources of its coverage. Until 1995, the source of the coating was used in the Russian Federation, which is not peculiar to the market economy - government loans at the Central Bank. This leads to additional inflation, because the economy is additionally produced by money, not provided by the goods.
The use of market mechanisms provides sources of deficiency coating and provides:
the state issues debt bonds, i.e., the state loan obtained from the economic entities is reduced;
money from the sale of securities The state sends to financing the budget deficit, the money goes to the economy.
As a result of the issue of state securities, there was a redistribution of money between the subjects of the economy:
Persons who had free cash paid them on credit to the state, having received a bond;
Budget organizations received funding their expenses at the expense of this money.
The budget deficit, covering, does not change, inflation does not increase, but the public debt is growing.
The funds for repayment of public debt are provided for in the federal budget in the article "Expenditures".
As a result of the internationalization of relations, humanity came to noble metals - gold and silver.
Precious metals were chosen because:
they could save their value for a long time
were homogeneous in quality
have a division and high cost (due to the disadvantage of their production and processing)
Gold and silver performed the money function for millennia. The final displacement of precious metals from the status of money occurred in the mid-70s of the 20th century, when gold was shifted - the replacement of gold and other precious metals with paper and credit money.
Money in its development passed several forms of material carriers:
1. Commodity, metal money - valid or full-fledged money.
Valid money is the money that the nominal value corresponds to the real value of the metal, from which they are made (copper, silver, gold).
The coin had set distinctive features (appearance, weight content).
2. Replays of valid money (defective) are money, the rated value of which is higher than real, i.e. above the cost of labor spent on their production. These include:
metal signs of value - a child coin, a small coin made from a cheap metal (copper, aluminum);
paper cost signs - made of paper. These are paper money and credit money.
Paper money
The right to issue paper money has a state.
The difference between the nominal value of the issued money and the cost of their release forms the emission income of the treasury. The essence of paper money lies in the fact that they are produced to cover the budget deficit and are endowed with the state forced course. Paper money is not exchanged for metal.
Credit money is obligations, the total amount of concluded contracts, placed orders or received services, which fall for a certain period of time, regardless of when the necessary funds were allocated and when actually payments are made.
The essence of the loan - the amount given back will return with interest.
Credit money appeared on the basis of the money function as a means of payment.
Allocate the following types of credit money:
Bill;
Banknote;
Electronic money.
Money has always served not only the national economy, but also world economic relations. The role of the currency function of money is constantly increasing, especially in the context of globalization of the global economy and finance. Collective currencies are created, for example, the euro.
