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INTRODUCTION

CHAPTER 1. The essence of the Russian monetary system

CHAPTER 2. Features of the evolution of the monetary system

CHAPTER 3. Directions for stabilizing the monetary system

3.1 Denomination

3.2 Devaluation

3.3 Revaluation

3.4 Nullification

3.5 Currency reforms

CONCLUSION

BIBLIOGRAPHY

INTRODUCTION

Interest in the problem of scientific definition of the phenomenon of money can be traced in science from ancient times to the present day. This is explained by the colossal degree to which money determines the direction of development of human civilization. The complexity and versatility of this social phenomenon explains the absence of a single generally accepted scientific definition of the content of the concept of money. That is why this problem has occupied and continues to occupy the minds of many outstanding philosophers, lawyers, and economists, some of whom were awarded the Nobel Prize for their contributions to the study of money.

The development of human civilization is closely related to the development and complexity of monetary forms and monetary relations. This has made it possible at the present stage to talk not just about money, but about the monetary system of the state, which reflects the national characteristics of the development of monetary units and the rules of their circulation.

Modern economic policy in Russia is aimed at developing market relations, using market levers to regulate the economy along with government regulation measures. And this, in turn, gives rise to interest in money, which, as is known, is the basis of the modern economy in general and the monetary system in particular.

The development of Russian statehood at the present stage is characterized by the ongoing process of reforming the political and economic infrastructure of society. An important direction of such transformations is the formation of the country’s monetary system and its legislative consolidation.

CHAPTER 1. The essence of the Russian monetary system

To understand the essence of the monetary system, you need to know what it is.

The monetary system is a historically established national system for organizing monetary circulation, fixed by traditions and formalized by law.

The principles of managing the monetary system are a set of rules, guided by which the state organizes the country’s monetary system. These include:

1. Centralized management of the national monetary system allows, based on development needs, to set common goals and make decisions beneficial to the economy of the country as a whole.

2. The stability and elasticity of money turnover means that changes in the mass of money in circulation must be correlated with the needs of the national economy: increase when demand increases, decrease when demand decreases in such a way as to prevent inflation.

3. The credit nature of the money issue obliges, firstly, to carry out additional issues of banknotes - both cash and non-cash, only as a result of credit operations carried out by banks, and secondly, not to allow banknotes from other sources, including the state treasury, into circulation .

4. The security of banknotes issued for circulation assumes that all substitutes for real money - banknotes - are backed by various banking assets (gold and other precious metals, freely convertible currency, inventories, securities, etc.).

5. Supervision and control over monetary circulation is an integral function of the public administration system. Constant continuous supervision and control is carried out by authorized state bodies (financial, tax, banking, etc.) over cash and non-cash money turnover.

6. The functioning of exclusively the national currency on the territory of the country permeates all legislative acts related to monetary circulation within the state. In accordance with it, only those payments that are made in the national currency are legal in the country. The population has the right to buy and sell foreign currency of their country, accumulate it, keep it on deposit in banks, and use it as a means of payment abroad.

On the basis of the principles considered, the elements of the national monetary system are formed.

The structure of the monetary system and its elements are determined by the extent of compliance with the general principles of management and operation and are regulated by the legislation of the country. Despite significant differences in the forms of constructing monetary systems at different stages of development of the commodity economy and unequal forms of national-state structure, all systems are characterized by some common features. Being formalized by law, they constitute components of the monetary system.

The developed monetary system of the country includes the following elements:

b The name of the country’s monetary unit, which serves as a price scale, is established by law

b The procedure for securing banknotes is a description of the types and basic rules for their provision

b The emission mechanism is a regulation for the issuance and withdrawal of banknotes from circulation. State legislative acts make a distinction between the treasury issuing center and the Central Bank as the issuer of bank notes. Non-cash money is issued by banks in the process of performing credit transactions. Repayment of loans represents the actual withdrawal of non-cash money from circulation.

b The structure of the money supply in circulation includes a number of parameters: the ratio between cash and non-cash money, between the volumes of issued banknotes of different denominations. The convenience of settlements depends on the structure of the money supply.

ь The procedure for establishing the exchange rate is a set of rules for establishing the exchange rate of the national currency and the procedure for exchanging it for foreign currency. The procedure for setting the exchange rate is the prerogative of the country's Central Bank, 5responsible for maintaining stable monetary circulation(5).

Depending on the type of money in circulation, two main types of monetary circulation systems can be distinguished:

1. metal money circulation systems, when full-fledged gold and (or) silver coins are in circulation, which perform all the functions of money, and credit money can be freely exchanged for monetary metal (in coins or bars);

2. systems of circulation of credit or paper money, which cannot be exchanged for gold, and gold itself is forced out of circulation.

Depending on the metal that was accepted as the universal equivalent in a given country and the base of monetary circulation, bimetallism and monometallism are distinguished.

Bimetallism is a monetary system in which the role of universal equivalent is assigned to two noble metals (usually gold and silver), and the free minting of coins from both metals and their unlimited circulation are provided.

Under the parallel currency system, the ratio between gold and silver coins was established spontaneously, in accordance with the market price of the metal. When using a dual currency system, the state fixed the ratio between metals, and the minting of gold and silver coins and their acceptance by the population were carried out according to this ratio.

Under the “lame” currency system, gold and silver coins were legal tender, but not on an equal basis, for example, if the minting of silver coins was carried out in a closed manner, then they practically acted as tokens of gold.

Monometallism is a monetary system in which one metal (gold or silver) serves as the universal equivalent and basis of monetary circulation, functioning coins and tokens of value in exchange for precious metals. Silver monometallism existed in Russia in 1843-1852. In Tsarist Russia, the system of silver monometallism was introduced as a result of the monetary reform of 1839-1843.

Depending on the nature of the exchange of value symbols for gold, three types of gold monometallism are distinguished: the gold coin standard, the gold bullion standard and the gold exchange (gold exchange) standard. The gold coin standard most met the requirements of capitalism during the period of free competition, contributed to the development of production, the credit system, world trade and the export of capital. This standard is characterized by the following main features:

· in the internal circulation of the country there is a full-fledged gold coin, gold performs all the functions of money;

· free minting of gold coins is allowed for private individuals (usually at the country's mint);

· inferior money in circulation (banknotes, metal coins) can be freely and unlimitedly exchanged for gold;

· free export and import of gold and foreign currency and the functioning of free gold markets are allowed.

The functioning of the gold coin standard required the presence of gold reserves at the central banks of issue, which served as a reserve of coin circulation, ensured the exchange of banknotes for gold, and were a reserve of world money.

During the First World War, the growth of budget deficits, covering them with loans and the growing issue of money led to an increase in the money supply in circulation, significantly exceeding in volume the gold reserves of issuing banks, which threatened the free exchange of paper money for gold coins. During this period, the gold coin standard ceased to exist in the countries at war, and then in most other countries (except for the USA, where it lasted until 1933): the exchange of banknotes for gold was stopped, its export abroad was prohibited, gold coins went out of circulation in treasure. At the end of the First World War, in the conditions of the development of the general crisis of capitalism, not a single capitalist state was able to stabilize its currency on the basis of restoring the gold coin standard.

During the monetary reforms (1924-1929), a return to the gold standard was made in two reduced forms - gold bullion and gold exchange standards.

Under the gold bullion standard, unlike the gold coin standard, there are no gold coins in circulation and there is no free minting of them. The exchange of banknotes, as well as other inferior money, is carried out only for gold bars. In Russia, a gold exchange (gold exchange) standard was established, under which there is also no circulation of gold coins and free minting. The exchange of inferior money for gold is carried out using an exchange for the currencies of countries with a gold bullion standard. In this way, the indirect connection between the monetary units of the countries on the gold exchange standard and gold was maintained. Maintaining the stability of the national currency exchange rate was carried out using the motto policy method, i.e. through the purchase or sale of national money for foreign ones, depending on whether the exchange rate of the national currency in the markets decreases or increases. Thus, under the gold exchange standard, the currencies of some countries were made dependent on the currencies of other countries. As a result of the global economic crisis of 1929 - 1933. the gold standard was abolished in all countries and a system of irredeemable banknote circulation was established (16).

CHAPTER 2. Features of the evolution of the monetary system

The appearance of metallic money presupposes not only the separation of crafts from cattle breeding and agriculture as a special type of activity, but also a fairly high level of its development. At the same time, the functions of money are increasingly assigned to precious metals.

The formation of the metallic monetary system was inextricably linked with the formation of Russian statehood. Within these processes, three periods can be distinguished:

1. IX century - beginning of the 12th century, organization of money circulation in the Old Russian state.

2. XII - XIV centuries, monetary circulation during the period of feudal fragmentation.

3. XV - XVI centuries, creation of a developed national metal monetary system.

The main and largest metal monetary unit among the Slavic peoples was the hryvnia.

Since gold, silver and copper were not mined, for a long time the coins made of precious metals that circulated in Rus' were foreign. These include Roman denarii of the 2nd-3rd centuries. AD, Arab and Western European coins.

The first gold coin minted in Rus' under Prince Vladimir Svyatoslavovich dates back to 988, was a repetition of the Arab dinar and was called the “zlatnitsa”. The coin was both a weight and a monetary unit.

Under Yaroslav the Wise in the X-XI centuries. Silver Russian coins and silver pieces were also minted. Money circulation reached significant proportions in large cities that were commercial and industrial centers.

The first mentions of the Russian ruble date back to the beginning of the 14th century. However, until the middle of the 17th century. The ruble remained a unit of account, constituting 100 kopecks, but not having a material embodiment either in a coin or in an ingot. In circulation there were altyn, denga, half money, and quaternary.

During the period of feudal fragmentation, almost every specific principality minted its own coin. With the formation of a centralized state during the reign of Ivan III, a unified national monetary system was introduced and established in the country. The minting of money became a government monopoly.

In 1535, during the regency of Elena Glinskaya, a monetary reform was carried out, during which standards for the weight, design and ratio of banknotes were introduced. From 1535 to 1718 coins were minted from silver, from 1704 - from copper, from 1926 to 1991. - made of copper-zinc alloy, since 1998 - made of aluminum. In 1992, due to hyperinflation, the issue of kopecks was stopped, after the monetary reform of 1998 it was restored. However, at present, the penny is practically not used in monetary circulation.

The initial value of the metal contained in coins at the beginning of the issue is always less than the face value. However, over time, it can significantly exceed the market price of the metal used for minting coins. As a result, coins made of valuable metals disappear from circulation and are melted down.

Since 1654, under Alexei Mikhailovich, large denomination coins, rubles and silver half-rubles were introduced into monetary circulation. The ruble, split into four parts, amounted to four half-and-half. Simultaneously with large denomination coins, copper money with a silver denomination was introduced into circulation.

Before the start of industrial gold mining in the mid-18th century. Russian coins were obtained by re-minting them from foreign ones. Gold coins from metal mined in the country began to be minted in 1755.

Paper money circulated on the territory of modern Russia even during the Mongol invasions.

In the Russian Empire, as a sovereign state, paper money began to be issued by the government only in the 18th century.

The decision to issue paper money was made in the Russian Empire under Peter III due to a huge deficit. On December 29, 1768, a manifesto was issued on the issue of paper money, called assignats, and the establishment of an Assignation Bank with a capital of 1 million rubles to service their circulation. gold and silver. The circulation of banknotes was declared obligatory.

The issue of paper money was explained by the “expanse of the lands of the empire” and the “burdensomeness of copper coins” for circulation, the inconvenience of long-distance transportation of any metal coin, and the need to speed up settlements “following the example of various European regions.” But the real reason for the transition to paper circulation was the deficit created in the state treasury and the financial difficulties caused by the Russian-Turkish war.

Since the government repeatedly used the printing press to cover the budget deficit, the rate of banknotes began to fall, metallic money began to disappear from circulation, and commodity prices began to rise.

In order to stabilize monetary circulation, Secretary of State M.M. Speransky in 1810 drew up a “financial plan”. In accordance with it, it was planned to establish a state bank with the right to issue banknotes redeemable for silver; banknotes were subject to destruction. However, the Patriotic War of 1812 prevented its implementation. On the contrary, the issue of banknotes has increased significantly. As a result, the rate of banknotes fell sharply. In 1818, the issue of banknotes was stopped, and some of them began to be withdrawn from circulation.

Credit money appeared during the monetary reform that began on July 1, 1839 and carried out under the Minister of Finance E.F. Kankrin. This reform was accompanied by processes of deflation and nullification.

The increase in the cash money supply occurred especially significantly during periods of wars (Russian-Turkish 1878-1879; Russian-Japanese in 1904-1905), internal political upheavals (1906), economic crises (due to crop failure in 1891, during the period of trade -industrial crisis of 1898-1901).

Along with cash, non-cash money circulation also developed. For this purpose, the number of State Bank institutions increased, settlement departments were created in 1898, and postal transfers were introduced in 1906(5).

During the First World War, the exchange of banknotes for gold was stopped. Solid coin-metal monetary systems, which were based on the circulation of gold coins and bank notes redeemable for gold, entered a period of decline, and the formation of a historically new system of money and monetary relations began.

But this was not the end of the gold standard era. After the end of the war, gold was forced out of circulation into large wholesale and international trade.

In Russia, a monetary system similar to the mature monetary systems of the West began to take shape after the monetary reform of 1895-1898. During this reform (the Witte reform), a gold coin form of the gold standard was introduced in the country. The gold currency existed in Russia until the summer of 1914. Having survived the economic crisis of 1899-1903, the Russo-Japanese War of 1904-1905 and the first Russian revolution of 1905-1907, it ensured the influx of foreign capital and the industrial boom of 1910-1914.

The process of establishing a mature monetary system in Russia was interrupted by the October Revolution of 1917, as a result of which the country ceased to be an integral part of the world economy. This fact was of decisive importance for the future of Russia, since the formation of mature monetary systems is inextricably linked with the development of the world market.

In 1922-1924, Russia made an attempt to return to gold coins and banknotes redeemable for gold. This required enormous efforts, since as a result of two wars and a revolution, the country was thrown back several decades in its economic development, and it was the monetary sphere that underwent the greatest changes.

One of the first measures of the Soviet government in the field of economic policy was the introduction of a state monopoly on banking. As a result, by 1920 there were practically no private or public banks left in the territory controlled by the Soviets. And in January 1920, the only state bank at that time, the People's Bank of the RSFSR (formerly the State Bank), was liquidated.

In 1921, in connection with the transition to NEP, the bank was restored under the name of the State Bank of the RSFSR, and in 1922, the creation of a network of joint-stock commercial banks and mutual credit societies began. However, by the time of the monetary reform, the activities of a small number of these banks were not of great importance, and the State Bank of the RSFSR (since mid-1923, the State Bank of the USSR) dominated the credit market.

Thus, the situation in the Russian banking sector in the 20s of the 20th century, despite the difference in the level of economic development of the country, was similar to the situation that developed in the 40s of the 19th century.

Under the Provisional Government, the state budget deficit reached 22,568 million rubles. The methods of covering it were traditional: increasing taxes, internal and external loans, and issuing paper money. In eight months, the Provisional Government issued approximately the same number of banknotes as was issued during two and a half years of war. The total amount of paper money in circulation on November 1, 1917 amounted to 19,575.7 million rubles, and the purchasing power of the pre-war ruble decreased to 67 kopecks.

During this period, there began to be a shortage of small and medium-sized banknotes in circulation. As a result, in addition to national banknotes, some cities and provinces had their own means of circulation. The collapse of the country's unified monetary system began, increasing the general disorganization of monetary circulation and contributing to a further increase in inflation.

From November 1917 to July 1921, the Soviet government issued 2,328.3 billion rubles into circulation. As a result, the money supply increased 119 times. Almost all of this issue went to cover the budget deficit, which in 1921 reached 21,936,916 billion rubles.

In total, more than 2 thousand banknotes circulated on the territory of the former Russian Empire.

The destabilization of the monetary system and the associated economic difficulties prompted the search for, albeit temporary, relatively stable measures. Various conventional measures and indices functioned in the country: commodity ruble, State Bank index, Special Quotation Commission index, budget index. However, indexation in conditions of hyperinflation was ineffective. Statistical indices and conventional measures could not replace a stable monetary unit.

With the transition to NEP, the monetary policy of the Soviet government changed radically. To draw up and execute the state budget, restore the credit system and organize trade, a stable monetary unit was needed. In addition, the NEP assumed the inclusion of the country in the international division of labor and the development of cooperation with foreign countries, and this was impossible without the creation of a monetary system similar to the monetary systems of industrialized countries.

Monetary circulation in the USSR was normalized after three monetary reforms. As a result, not only the parameters of monetary circulation changed, but also the type of monetary system. The USSR introduced the gold exchange form of the gold standard.

The monetary reform of 1922-1924 (Sokolnikov's reform) began with the issuance of bank notes (chervonets) in accordance with the Decree of the Council of People's Commissars of October 11, 1922 On granting the State Bank the right to issue bank notes. The reform was carried out in three stages.

As a result of the monetary reform of 1922-1924, it was possible to cope with hyperinflation, stabilize prices, increase trade turnover, and expand commodity-money relations between city and countryside. But most importantly, the prerequisites were created for the formation of a stable monetary system.

The new monetary system did not remain stable for long; already in mid-1925, the first signs of inflation appeared, which, after the XVI Congress of the CPSU (b) adopted a course towards industrialization, acquired the character of creeping inflation.

Deep structural changes in the economy associated with industrialization, and then the gradual winding down of the NEP, led to the creation in 1930-1932 of a monetary system that met new requirements, but different from the one that was conceived in the early 1920s.

As a result of the banking reforms of the late 20s of the twentieth century and the credit reform of 1930-1932, the banking system merged with the state. Banks have become integral elements of a state-bureaucratic structure, having finally lost their actual commercial character and the role of an independent regulator of monetary circulation. The monetary system that was formed in the USSR after the credit reform was completely divorced from the world market.

Soviet banknotes not only were not exchanged for gold, but also did not serve in relation to it, either as a means of circulation or as a means of payment.

In the mid-twentieth century in Russia, just as in the mid-nineteenth century, there was no system of commercial banks. In addition, one of the directions of economic policy of that time was the maximum compression of cash circulation. This happened due to the preservation of an almost subsistence economy in the countryside, low wages for workers and employees, and the rationing system in the cities. Therefore, when carrying out the monetary reform of 1947, a relatively small amount of cash was required.

Thus, speaking about the features of monetary reforms in Russia in 1839-1843 and in the USSR in the 1920s, as well as in 1947, it is necessary to note the following. These reforms were carried out in conditions where the bulk of the population lived in the countryside and engaged in subsistence farming. The market's need for cash was limited, so the costs of reforms in Russia were less than in industrialized countries. The state nature of money, characteristic of our country, also facilitated the implementation of monetary reforms (18).

In order for money to perform all functions, it is necessary that its purchase value remain constant over a long period. The purchase price is influenced by factors such as:

· Inflation

· Money supply

· Dollarization of the economy

· Exchange rate

· Disproportional changes in prices for individual goods

The state's task is to maintain purchasing power at a given level.

Under the conditions of the functioning of paper and credit money, excessive emission of money into circulation is possible. Therefore, the state constantly pursues monetary policy aimed at stabilizing the monetary unit. If this policy is ineffective, then changes are made to the monetary system. Among the measures designed to eliminate or reduce the negative consequences of a decrease in the stability of the monetary unit, periodic changes in the value of the monetary unit, its name, as well as ongoing monetary reforms attract attention. Such measures are carried out using denomination, denomination, devaluation, revaluation and nullification.

3.1 Denomination

Denomination is a change in the nominal value of banknotes in order to prepare for the stabilization of monetary circulation.

The money and commodity markets are closely related and therefore events occurring in the money market are transformed into changes in the commodity market. By pursuing a targeted monetary policy and changing the supply of money, the state is able to influence the money and commodity markets (2).

Denomination in our country was carried out several times.

The 1947 currency reform was intended to rid the financial system of wartime legacies, mainly bloated cash. It was held from December 16 to 22 in the form of exchanging old banknotes for new ones. All cash was changed in a ratio of 10:1. Only party and Soviet workers did not suffer at all then. Bank deposits of other individuals were also not subject to redenomination if they did not exceed 3 thousand rubles. For citizens who had amounts from 3 to 10 thousand in the bank, money was changed in a ratio of 3:2, and over 10 thousand rubles. - 2:1. Change coins issued after 1921 were not exchanged.

The denomination of 1961, on the contrary, was explained by the fact that the economy had achieved complete stability and was developing dynamically. In a ratio of 10:1, not only cash, but also non-cash funds, as well as the scale of prices, changed. Only those who had small change in their pockets won: coins of 1, 2 and 3 kopecks. remained in circulation, actually becoming 10 times heavier. All other money was offered to be exchanged at specially opened exchange offices for new banknotes from January 1 to April 1. In principle, during the exchange there were formally no restrictions on amounts. However, it was assumed that the “shadow traders” who proliferated at that time would not be able to protect their capital. As a result, only 4.5% of the cash in circulation at the beginning of 1961 was not exchanged.

The fight against illegally acquired capital also explained the withdrawal of 50- and 100-ruble banknotes from circulation, announced on January 23, 1991. Citizens were asked to exchange the largest banknotes in their hands at that time for money of a smaller denomination within three days. In this case, no more than 500 rubles were changed. per person, which was noted in the passport. Even up to 1 thousand rubles. could be exchanged after receiving a positive conclusion from special commissions created at local authorities and state-owned enterprises. The banknotes withdrawn from circulation were exchanged for money of a lower denomination, since the new 50- and 100-ruble banknotes were put into circulation much later. At the same time, bank deposits over 500 rubles were frozen. As a result, instead of the expected withdrawal of 100 billion rubles from circulation, only 4 to 7 billion rubles were not presented for exchange.

On July 26, 1993, it was announced that as of August 7, Soviet banknotes would be completely withdrawn from circulation. Only Bank of Russia banknotes, which entered circulation in February of the same year, remained a legal means of cash payment. Exchange old money in an amount not exceeding 30 thousand rubles. (later the limit was raised to 100 thousand) was possible at Sberbank branches. Those who suffered from this were mainly citizens of the former Soviet republics who had savings in Soviet banknotes. This was especially true for residents of Kazakhstan and Tajikistan, where by that time a national currency had not been introduced, and Soviet rubles were the only means of cash circulation.

The relative stabilization of the economic situation after the hyperinflationary years of 1992-1995 led to the emergence of the idea of ​​​​denominating the Russian ruble. The denomination took place from January 1 to December 31, 1997. In fact, the exchange was carried out by gradually removing old banknotes from circulation and replacing them with new ones. The exchange was carried out in a ratio of 1000:1. The old-style money was in parallel circulation with the new ones throughout 1998. During this year, the Central Bank gradually removed old banknotes from circulation, replacing them with new ones. Until 2003, cash could be exchanged without any restrictions at special points (16).

3.2 Devaluation

Devaluation is the official decrease in the exchange rate of the national currency in relation to foreign currencies. The devaluation of the ruble in Russia is carried out by the Central Bank. In Russia, the ruble exchange rate is pegged to a basket of currencies, where 55% are dollars and 45% are euros. In Russia, the Central Bank has established a floating exchange rate for the ruble.

In order to devalue the ruble, the Bank of Russia needs to expand the currency corridor (that is, set the minimum and maximum value of the ruble in relation to a basket of currencies, then the ruble exchange rate is determined at foreign exchange auctions).

As part of the financial crisis in November 2008, the Central Bank expanded the borders of the basket twice already. The monetary authorities are forced to weaken the ruble by speculative capital outflow: investors take money from emerging markets and invest in US Treasury bonds. And the demand for currency from the population, banks and companies who fear a recession accelerates the devaluation process. “In order not to spend reserves at the same rate, the Central Bank is forced to expand the boundaries of the basket. Since July, when the dollar was worth 23 rubles, the Russian currency has already weakened by 20%,” notes Denis Barabanov, head of the analytical department of the financial markets department of the investment company Grandis Capital (15). The rate of weakening of the ruble will depend on the fall in oil prices. To provide the economy with foreign currency, the Central Bank is forced to spend gold and foreign exchange reserves. Thus, in September-October 2008, 100 billion dollars were spent, and gold reserves amounted to 484 billion dollars. To limit the demand for currency, the Bank of Russia is forced to resort to devaluation of the ruble by the Central Bank, while foreign exchange rates increase significantly. But the country's authorities, the Minister of Finance, promise that the devaluation of the ruble will be smooth and that a sharp devaluation of the ruble, like in 1998, will not happen.

What could be the consequences of ruble devaluation in Russia? There are two possible results: positive or negative. Devaluation itself is intended to have a positive effect on the financial system and the economy as a whole. One of the positive results of the devaluation of the ruble is the increase in the competitiveness of Russian goods abroad by reducing their cost. However, it is good if something is produced within the country and is in demand in the foreign market. Unfortunately, the Russian economy is 60-80% dependent on the export of raw materials, the demand for which in the world, according to economists, will decrease by 25-30% in the next 2-3 years.

Another positive aspect of the devaluation of the ruble is the reduction in the rate of spending gold and foreign currency reserves. But the total debts of Russian companies to foreign creditors are approximately equal to gold and foreign currency reserves.

The experience of 1998 shows that the devaluation of the ruble had a positive impact on the development of production in Russia. Due to the fact that prices for imported goods rose sharply, domestic production began to develop in 1999 and import substitution occurred.

Among the negative consequences of devaluation, there is an increase in prices for imported goods, for example, cars, food, and household appliances. Increasing prices for these goods could fuel inflation throughout the country. A sharp devaluation of the ruble promises a sharp drop in living standards in Russia.

Economists differ in their assessment of the scale of devaluation in Russia in 2009. The range of forecasts is from 35 to 40 rubles per dollar. All economists agree on one thing: the downward trend in the ruble exchange rate will continue throughout 2009(14).

3.3 Revaluation

Devaluation also has the opposite effect - revaluation, that is, an increase in the exchange rate of the national currency in relation to the currencies of other countries, usually in relation to the US dollar, German mark, Japanese yen. Revaluation helps to increase the role of the national currency in international payments and can serve as a step towards ensuring not only internal, but also external convertibility, recognition as a means of payment in foreign economic transactions. Revaluation is used in targeted government policy, implementing positive changes in economic development: overcoming the decline in production and achieving stable production growth, reducing inflation, and creating a positive interest rate on bank deposits. It is used as a method of stabilizing the country's monetary system and restoring the purchasing power of money after inflation. Revaluation is used to sustainably increase the exchange rate of a currency on international currency markets. Revaluation, as a rule, is beneficial to creditors who receive repayment of debts in the revalued currency, as well as to importers who buy cheaper foreign currency to pay for purchased goods. Exporters usually suffer losses because the prices of their goods denominated in foreign currencies rise, making it difficult to sell the goods, and if their foreign currency price remains the same, revenue in domestic currency decreases.

3.4 Nullification

Nullification of money is the declaration by the state of depreciated paper monetary units as invalid by reducing the money supply by “crossing out zeros.” A type of monetary reform carried out as a result of severe inflation with a sharp drop in the purchasing power of money. Sometimes it actually coincides with devaluation, if depreciated money is exchanged for new ones at an extremely low rate. Under monometallism, nullification was sometimes accompanied by a return to full-fledged metallic money; during demonetarization, it is carried out by issuing new banknotes.

Nullification does not ensure complete stabilization of monetary circulation.

In the USSR, nullification was used at the completion of the monetary reform of 1922-1924, when treasury notes were issued, one ruble of which was equivalent to 50 billion rubles. sample 1918-1919

3.5 Currency reforms

It should be emphasized that measures such as redenomination, money exchange, and devaluation eliminate some of the negative consequences that have developed in the monetary sphere, but do not lead to long-term improvements in this area and are not accompanied by the elimination of the causes that caused certain shortcomings. In contrast to the listed measures, monetary reform is a radical elimination of shortcomings in the monetary sphere, providing for a transition to the use of a stable monetary unit characterized by stable purchasing power, which can contribute to the development of relations inherent in a market economy and increasing the role of money in the development of the national economy.

Monetary reforms are carried out in accordance with legislative acts aimed at strengthening the country's monetary system. During monetary reforms, depreciated paper money is withdrawn from circulation, new ones are issued, the monetary unit or its gold content is changed, and a transition occurs from one monetary system to another. In all these cases, we are talking about a change in the monetary unit both in cash circulation and in non-cash payments.

In this case, it is not necessary, especially in modern conditions, to change the gold content of the monetary unit, but the exchange rate of the national currency may change. Completion of the monetary reform does not guarantee the continued stability of the new currency in the future. After carrying out the monetary reform, it is necessary to systematically implement certain measures to maintain the achieved results. A sound monetary policy plays a significant role in this, with the help of which the necessary regulation of the monetary sphere can be carried out.

· production growth, which helps to increase the supply of goods and limits the possibility of price increases, which is of paramount importance for maintaining the stability of the monetary unit;

· zero budget deficit, which makes it possible to do without the use of money emission and attraction of credit to cover budget expenses, due to which effective demand is limited and its possible impact on price growth;

· the presence of sufficient gold and foreign exchange reserves to maintain the stability of the national currency exchange rate, and, if necessary, use such reserves to import goods and increase their supply on the market.

The implementation of monetary reform in the Russian Federation can be considered as a promising direction for improving the monetary sphere and increasing the role of money in economic development. The main directions of preparation for carrying out monetary reform can be the growth of production, elimination of the budget deficit, and the accumulation of sufficient gold and foreign exchange reserves (10).

CHAPTER 4. Prospects for the development of the Russian monetary system

One of the most important questions that economists are now asking is how the ruble will behave against foreign currencies during 2009 and at the beginning of 2010.

According to the forecasts of the investment bank Renaissance Capital, on January 1, 2010, the dollar will cost 28.8 rubles, which means that the devaluation of the ruble will be replaced by its revaluation.

However, as noted in the review, despite the serious weakening of the Russian currency against the euro, American dollar, yen and yuan, the ruble has seriously strengthened against the currencies of those countries that are the main competitors of our manufacturers. For example, against the Ukrainian hryvnia the ruble rose by 35%, against the Brazilian real by 20%, and against the Turkish lira by almost 15%.

According to Renaissance Capital analysts, the Bank of Russia has four scenarios for ruble devaluation. The first involves a transition to a floating exchange rate. “If this option had been implemented in the spring of 2008, it would have already had a positive effect and would not have led to expectations of further weakening of the Russian currency,” says Alexey Moiseev, head of the debt analysis department at Renaissance Capital. The second scenario is a controlled gradual weakening of the ruble against the bi-currency basket by expanding the permissible corridor by the Central Bank.

The best, according to Renaissance Capital analysts, is the third option, a compromise between the first two: a one-time weakening of the ruble exchange rate by 10-15% followed by a gradual and less significant strengthening (by 5-10%). The fourth scenario is the most optimistic and is calculated for the cost of a barrel of oil from $70 and above - such a development of events will allow the Central Bank to remain within the current boundaries of the currency corridor.

But if next year oil costs $30 per barrel, then the dollar can already fetch 40 rubles. and GDP will decrease by 5%.

The chief economist of the Troika Dialog company, Evgeny Gavrilenkov, believes that already in the first quarter of 2009 the Bank of Russia should introduce a smooth exchange rate for the ruble, and then at the end of the year, GDP growth at the level of 3-4% and even higher is possible (at the price of oil $60 per barrel). And in this case, according to Mr. Gavrilenkov, the revaluation of the ruble at the end of 2009 is quite real. “However, if the Central Bank intends to continue to carry out a controlled gradual weakening of the ruble, the GDP growth rate for the year will be negative - minus 2-4%,” believes Evgeny Gavrilenkov.

In fact, the Bank of Russia did the following. He submitted to the State Duma the draft “Main Directions of the Unified State Monetary Policy for 2009 and the Period of 2010 and 2011.” The document was approved by the Government of the Russian Federation at a meeting on August 21.

Calculations for the monetary program for 2009-2011. carried out based on indicators of demand for money corresponding to inflation targets, projected growth rates of GDP and its components, as well as the dynamics of exchange rates taken into account in the balance of payments forecast.

The exchange rate policy of the Bank of Russia in the medium term will be aimed at creating conditions for the implementation of a monetary policy model based on inflation targeting and a gradual reduction in direct intervention in exchange rate setting processes.

As an operational indicator when carrying out exchange rate policy at the stage of transition to a floating exchange rate regime, the Bank of Russia will continue to use the bi-currency basket consisting of the euro and the US dollar, which will allow a balanced response to mutual fluctuations in the rates of major world currencies and, accordingly, smooth out fluctuations in the nominal effective ruble exchange rate.

Trends in the ruble exchange rate in the medium term will be determined by the movement of funds within the framework of foreign economic activity, formed under the influence of both external factors and processes of transformation of the structure of the Russian economy.

Under the conditions set by the main macroeconomic options for Russia's development, as well as the parameters for the implementation of monetary policy, the rate of increase in the real effective exchange rate of the ruble will tend to decrease.

Russian ruble monetary system

CONCLUSION

The modern monetary system that has developed in the Russian Federation, on the one hand, has deep historical roots, and on the other hand, it is fixed by modern legislation.

Over the past two hundred years, Russia has experienced monetary reforms ten times, both complete, as a result of which a new monetary system was created, and partial, the task of which was to streamline the existing monetary system in order to stabilize monetary circulation. These monetary reforms were very different: confiscatory and non-confiscating, soft and hard. The preparation and implementation of monetary reforms in Russia was influenced primarily by the specifics of the country's monetary and banking systems, the genesis of which was determined by the peculiarities of the development of its economy.

One of the defining features of Russia's economic development was the slow domestic accumulation of capital. The reason for this is the small volume of the total surplus product, due to low soil bioproductivity, harsh climate and short growing season.

Another feature of the development of the Russian economy was the so-called continental nature of trade (in contrast to the countries of Western Europe, where there was large-scale maritime trade). Due to the limited trade relations, poor development of cities and, accordingly, the low level of separation of crafts from agriculture, the processes of development of commodity-money relations and the accumulation of monetary capital in Russia proceeded very slowly. This determined a number of specific features in the development of its monetary and banking systems.

Under the conditions of the functioning of paper and credit money, excessive emission of money into circulation is possible. Therefore, the state constantly pursues monetary policy aimed at stabilizing the monetary unit. If this policy is ineffective, then changes are made to the monetary system. These changes include: denomination, devaluation, revaluation and nullification. Denomination and nullification are a type of monetary reform that has been carried out in our country more than once.

Due to the financial crisis of 2008, the ruble fell in value against the dollar and euro. But many economists argue that the ruble will strengthen its position during 2009. And the economy in the country as a whole will enter a stage of recovery.

The money supply is the most important indicator of the amount of money in circulation. It corresponds to the total volume of funds - cash and non-cash, which are currently issued and not withdrawn from circulation and belong to various economic entities: enterprises, individuals, and the state. The importance of the money supply is determined by the fact that economic indicators such as inflation, the level of interest rates and employment, national income, exchange rate, and GNP depend on its size and growth rate.

The money supply contains all possible and varied types of money. To characterize its structure, the following monetary aggregates are used:

1. M0 is money in the narrow sense of the word, which is also called “money for transactions.” They include cash (banknotes and coins in circulation and at the cash desks of enterprises and organizations, treasury notes in some countries) circulating outside banks, as well as money in current accounts (“demand” accounts) in banks, other checkable deposits, traveler's checks, sometimes credit cards. It should be noted that deposits in current accounts perform all the functions of money and can be easily converted into cash. It is the M0 unit that services operations for the sale of gross domestic product, distribution and redistribution of national income, accumulation and consumption.

2. M1 is money in a broader sense, which includes all components of M0 + time and savings deposits in commercial banks (usually small in size and up to 4 years), i.e. savings that are easily convertible into cash, as well as short-term government securities. The latter do not function as a medium of exchange, however, they can be converted into cash. Savings deposits in commercial banks are withdrawn at any time and converted into cash.

3. M2 includes M1 + large time deposits in specialized credit institutions, as well as securities traded on the money market, incl. commercial bills issued by enterprises. This part of the funds invested in securities is not created by the banking system, but is under its control, since the transformation of a bill of exchange into a means of payment requires, as a rule, the bank’s acceptance, i.e. guarantees of payment by the bank in the event of insolvency of the issuer.

4. M3 includes M2 + various forms of deposits in large credit institutions.

Individual monetary aggregates differ in their degrees of liquidity and profitability. Liquidity refers to the ability of an asset to quickly become a universal means of payment. An asset is considered liquid if it can be exchanged for a good or service at low transaction costs and without loss. Cash is considered the most liquid. All other types of assets have less liquidity in comparison.

Liquidity and profitability indicators are often inversely related - as profitability increases, liquidity decreases, and vice versa. This is quite logical, since a risky asset should potentially promise an increased return to the owner, which is usually considered as a risk premium.

Monetary aggregates are usually grouped according to the degree of decreasing liquidity. Indeed, the M0 aggregate includes the most liquid part of the money supply, while the M3 aggregate is the most illiquid.

An independent component of the money supply in Russia is the monetary base. It includes the aggregate M0 + cash in banks' cash desks, required reserves of banks and their funds in correspondent accounts with the Central Bank of Russia.

In any country, the money supply is the object of constant government regulation. The need for this is determined by the fact that the size of the money supply and the rate of its growth affect the state of other economic indicators. For example, if the money supply grows significantly faster than the volume of national production, then, other things being equal, this can lead to inflation, since additional money is released into circulation with a shortage of goods and services that will be sold with its help. On the other hand, the state resorts to additional money emission in order to stimulate economic growth. In this case, an increase in the amount of money in circulation makes loans cheaper and contributes to the expansion of productive investment. If the growth of the money supply does not keep pace with the increase in the volume of national production, then the money in circulation at a constant speed of circulation may not be enough to properly service all payments and settlements, and the uninterrupted operation of the national economy may be at risk. Counterparties will simply have nothing to pay each other with; they will not be able to repay emerging monetary claims. Moreover, the main debtor, as a rule, will be the state, since it is the state that restrains the growth of the money supply, limiting emissions, and pursuing a restrictive monetary policy.

At the same time, it should be noted that the issue of money in circulation does not always lead to an increase in the money supply. In this regard, a distinction is made between the concepts of issuing money and issuing money into circulation. The latter occurs constantly and may or may not be accompanied by an increase in their number.

The size of the money supply in a country depends on the main priorities of the state’s economic policy. Moreover, the central bank has a special mechanism with the help of which it can regulate not only the total amount of cash in circulation, but also the non-cash issue of commercial banks.

A distinctive feature of the dynamics of monetary indicators in 2008 is a significant slowdown in the growth rate of the broad money supply, monetary aggregates M2, M0, M2-M0.

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Currency reform- this is a transformation of the monetary system carried out by the state with the aim of streamlining and strengthening the country's monetary circulation.

Radical monetary reforms associated with changes in the principles of organization of the monetary system, as a rule, are aimed at long-term stabilization of the monetary unit. Such reforms are usually preceded by measures related to the improvement of public finances and the creation of conditions for strengthening the country's economy.

Partial transformations of the monetary system eliminate certain negative phenomena in the monetary sphere for a short period of time.

After the abandonment of the gold standard and the widespread transition of countries to banknotes and treasury notes that were not redeemable for gold, which were subject to chronic depreciation, monetary reforms could not ensure long-term stabilization of monetary systems. With the help of monetary reform, it is possible to achieve only temporary and partial ordering of some elements of the monetary system.

In modern conditions in developed countries, monetary reforms are being replaced by anti-inflationary programs as part of various stabilization plans and monetary policy implementation by central banks.

Types of monetary reforms:

The following types of monetary reforms are known in the history of monetary circulation.

1. The transition from one monetary commodity to another (from copper money - to silver, from silver - to gold, or from bimetallism - to monometallism, then - to the gold bullion, gold exchange standard) or from one type of monetary system to another (from metal circulation - to the circulation of credit and paper money).

2. Replacement of defective and depreciated coins with full-fledged ones or irredeemable depreciated banknotes with change ones, or restoration of the exchange of paper money for gold or silver.

3. Partial measures to stabilize the monetary system (changes in the order of issue, security of banknotes, price scale, gold content or exchange rates).

4. Formation of a new monetary system in connection with the creation of new states, as well as the unification of the monetary systems of several countries.

Monetary reforms are carried out by various methods depending on the form of circulating money (money as a commodity - a universal equivalent or as signs of value - credit and paper money), the socio-economic structure of the country, complete or partial transformation of the monetary system, and state policy. Monetary reforms may be accompanied by the withdrawal from circulation of all or part of depreciated paper banknotes and their replacement with new money (paper or metal), a change in the gold content of money or its exchange rate, the order of issue, security, as well as currency regulation.

Methods for stabilizing the monetary system:

The most typical methods of stabilizing the monetary system are the following.

Nullification is the declaration by the state of depreciated old banknotes as invalid and the issuance of new paper banknotes in smaller quantities.

Nullification is usually carried out during a period of economic stabilization after hyperinflation to restore confidence in the national currency. This is carried out after the war during the creation of independent states and in developing countries. In developed countries, in modern conditions, due to strict regulation of monetary circulation and inflation control, nullification is not used, although Argentina in the late 80s and early 90s resorted to nullification almost every year.

Denomination (change in price scale) - a change in the face value of banknotes with their exchange at a certain ratio for new, larger monetary units with the simultaneous recalculation of all monetary obligations in the country (bank accounts, prices, tariffs, wages, etc.) .

The denomination also provides for the replacement of old banknotes with new ones, but without limiting the amounts. Formally, it is of a technical nature, since it facilitates and simplifies accounting, reduces circulation costs and does not affect the economic foundations of stabilizing money circulation. At the same time, it can be an important stage in strengthening the monetary system if it is carried out at the final stage of stabilizing the economy, finances and suppressing hyperinflation, since it is an important point in increasing confidence in the national currency.

Devaluation - under the gold standard, a decrease in the metallic content of the monetary unit, with the cessation of the exchange of credit money for gold - a decrease in the exchange rate of national banknotes in relation to foreign currency.

After the end of the exchange of credit money for gold, devaluation began to be used to strengthen the competitive positions of countries in foreign markets, improve the balance of payments, and attract foreign investment.

Devaluation does not eliminate the problem of monetary circulation and in modern conditions, it does not restore the stability of the national currency. Moreover, it leads to a decrease in the purchasing power of money as a result of rising prices for imported goods and promotes inflationary processes in the country. It stimulates the export of products and intensifies competition in the foreign market. Typically, devaluation is accompanied by differentiation of export and import duties, the introduction of currency and other protective clauses.

Revaluation (restoration) is an increase in the metal content of monetary units or the exchange rate of paper banknotes in relation to metal or foreign currency. With the abolition of the gold content of currencies in the mid-70s of the 20th century, revaluation began to mean only an increase in the market rate of the currency.

Revaluation restrains inflationary processes in the country, since imported goods become cheaper, but it is unprofitable for exporters, who lose on exchange rate differences when exchanging cheaper foreign currency for their own strengthened currency under previously concluded contracts.

Under monometallism, radical monetary reforms coincided with methods of stabilizing the monetary system (nullification, devaluation, revaluation) and were accompanied by the restoration of the exchange of paper money for metal or an increase in their gold content or a return to the gold or silver standard. In modern conditions, denomination and revaluation are used as methods of monetary and exchange rate policy. The requirement to carry out devaluation is established in a number of IMF stabilization programs offered to countries.

2. TYPES OF MONEY

In its evolution, money went through the following stages:

1) metal;

2) paper;

3) credit;

4) electronic money.

Historically, paper money arose from metal circulation and acted as substitutes for previously circulated silver and gold coins.

During the centuries-old history of the use of silver and gold coins, it was noticed that worn and damaged coins, i.e. containing less weight, are in circulation along with full-fledged coins and express the same value. This led to the idea of ​​replacing metal coins with paper ones.

The essence of paper money is that it is banknotes issued by the state to cover the budget deficit, and is usually not exchangeable for metal, but is endowed with a forced exchange rate by the state. Currently, paper money in the form of treasury notes is preserved in only 10 countries (USA, Italy, India, Indonesia, etc.).

In the Russian Federation, in accordance with the Law on the Bank of Russia, the issue of cash and the organization of cash circulation are carried out directly by the Bank of Russia (Article 4).

The expansion of the scope of commercial and bank credit in the context of the acquisition of universal commodity relations led to the emergence of credit money.

Credit money has gone through the following stages in its development: bill, banknote, check, electronic money and its latest variety - credit card. A bill of exchange is a security of a strictly established form, certifying an unconditional obligation of the drawer (promissory note) or another payer specified in the bill of exchange (bill of exchange) to pay a certain amount of money upon the maturity of the bill of exchange.

6. The concept and content of the monetary system, its elements.

Monetary system- this is a form of organization of monetary circulation in the country, enshrined in national legislation. In each country, it developed historically as commodity-money relations developed.

The main elements of the monetary system are:

The name of the monetary unit and the scale of prices - this element of the monetary system developed historically, for example, the ruble was initially synonymous with the hryvnia - the monetary and weight unit of Ancient Russia;

Types of banknotes;

The emission mechanism and the procedure for securing banknotes are the procedure for issuing money into circulation and withdrawing it from circulation;

The structure of the money supply in circulation is either the ratio between the cash and non-cash money supply, or between individual bills in the total amount of banknotes or in the total number of banknotes;

The procedure for establishing the exchange rate and exchanging for foreign ones is the quotation of currencies or the ratio of a unit of currency of a given country to the currencies of other countries;

The monetary regulation mechanism is a variety of monetary regulation instruments to support the stability of money circulation and the national currency.

In the process of evolution, three type of monetary systems:

bimetallism, monometallism and the paper-credit money system

Bimetallism- This is a monetary system in which the role of universal equivalent was legally assigned to two metals - gold and silver. This system provided for the free minting of coins from both metals.

There are three types of bimetallism:

A parallel currency system in which the ratio between gold and silver was established spontaneously in accordance with the market price of these metals;

A dual currency system - the ratio between metals was established by the state and, in accordance with this, coins were minted from gold and silver;

A “limping” currency system - a system in which both gold and silver coins served as legal tender, but not on equal terms, since silver coins were minted in a closed manner, and gold coins were minted freely, and silver coins were a sign of gold.

Monometalism is a monetary system in which one metal serves as the universal equivalent. At the same time, there are other tokens of value in circulation that can be exchanged for gold (banknotes, treasury notes, change coins).

There were three types of monometallism: gold coin, gold bullion and gold exchange standards.

The gold coin standard is characterized by the following features:

Free minting of gold coins with a fixed gold content;

Free exchange of gold coins for gold tokens at face value;

Free movement of gold between countries;

Gold performs all the functions of money.

World economic crisis of 1929-1923. led to the fact that all forms of gold monometallism ceased to exist. Since the 1930s, monetary systems based on the functioning of fiat credit money have begun to operate in the world.

Paper money system. With the transition to fiat credit money, all monetary systems began to be characterized by the following features:

The abolition of the official gold content, the provision and exchange of banknotes for gold, the withdrawal of gold from internal and external circulation and its deposit in reserves;

Issue of cash and non-cash money based on bank lending operations;

The predominance of non-cash circulation in money circulation;

Strengthening state regulation of monetary circulation, creating a mechanism for monetary regulation

Methods implementation monetary reforms changed as monetary systems evolved from the gold (silver) standard to modern fiat credit money. Methods implementation monetary reforms- nullification, restoration, devaluation, denomination.

Nullification - this is the cancellation by the state of old depreciated money and the introduction of new ones. The measure is applied when hyperinflation(the value of money falls so quickly that it is no longer able to perform its main functions). Until the beginning of the 20th century, it was accompanied by a return to full-fledged metal money and change banknotes. An example is France of the 18th century, where, after prolonged inflation, the government issued other paper signs instead of assignats - “land mandates”, which gave their holders the right to receive land on demand from the public land fund, and 30 livres in assignats were equal to 1 livre in “mandates”. But “land mandates” were also irredeemable for metal, were issued in excess quantities and depreciated seven times in a year. Ultimately, in 1797, both assignats and “land mandates” were declared invalid and gold metallic and gold-changeable money were issued. After the abolition of the gold standard, nullification is not accompanied by the issuance of metal banknotes, and is often carried out with a small redemption of the canceled money at an extremely low rate.

Nullification was carried out after the First World War in Germany due to hyperinflation and depreciation of the mark by 1.6 trillion. once. During the monetary reform of 1924, money was exchanged in the ratio of 1 new per 1 trillion. old Reichsmarks. In Greece in November 1944, 50 billion old drachmas were exchanged for one new drachma. In Hungary in 1946, for one new forint it was necessary to give 4000000000000000000000 (four hundred quintillion) old penge. In China, before the reform of 1948, in addition to old depreciated money, there were banknotes of various provinces and many foreign currencies in circulation. During the reform of 1948-1951. Banknotes of the People's Bank of China were introduced. The rates and rules for exchanging old money in different provinces of the country were different. After the Second World War, a virtual nullification of money was carried out in a number of Latin American countries (Chile, Bolivia, etc.).

In modern conditions, nullification is used at high rates of inflation, mainly in developing, rather than developed countries. An exception is the declaration of invalidity of the national currencies of developed countries of the European Union in connection with their transition to a single European currency in 1999-2002. In this case, the exchange of money was carried out according to differential ratios.

Those who had cash savings and deposits in the country's banks and external investors suffer from the nullification, but the state benefits from the undervalued and limited exchange of canceled money.

Restoration - this is the restoration of the previous gold content of the monetary unit. This happens revaluation- an official increase in the gold content of a monetary unit or an increase in its exchange rate, price in foreign currency. An example is England, where after the end of the war with France in 1815, which led to the depreciation of banknotes by 40%, and the improvement of the country’s financial situation (reducing the depreciation of money to 3%), it became possible in 1821 to restore the exchange of banknotes for gold at a rate of 1:1. Similarly, in the USA, after a decrease in the rate of inflation, which increased in 1861-1865, the exchange of dollars for gold was resumed in 1879 at a rate of 1:1.

In February 1924, the pre-war (1914) gold content of the ruble was restored in the USSR. One ruble was equal to 0.774234 grams of pure gold. One of the authors therefore attributes this reform to restoration, but it can also be attributed to denomination. The exchange was made at a reduced rate due to strong inflation. Thus, 1 ruble of new treasury notes was equal to 50,000 Soviet signs of the 1923 model or 50 billion of the previous models (before the redenomination of 1922-23). The reform made it possible to restore the previous scale of prices and the population's trust in Soviet money.

Denomination - this is a reduction in the face value of the money supply in circulation by exchanging old banknotes for new ones in the proportions of their depreciation. Simply put, the zeros on banknotes are crossed out. At the same time, over a certain period of time, old money is exchanged for new ones, and prices of goods and services, wages, and tariffs are recalculated in the same ratio. Sometimes denomination is also called the replacement of some banknotes with others without changing their face value. There are denominations full- all banknotes of all existing denominations are exchanged, and partial- banknotes of one or more denominations are exchanged. According to the speed of denominations, they can be fast(over several days or weeks) - typical for the USSR, slow(from several months to a year), long-term(several years) and unlimited (« sleeping"), which are designed for an unlimited or unannounced period - typical for the USA.

More than 600 denominations have taken place around the world since World War II alone. Monetary reforms were carried out in Belgium (1944); France, Holland, Denmark, Norway, Austria, Czechoslovakia - in 1945; in Finland, Japan - in 1946, in Bulgaria, Korea - in 1947. During the monetary reforms, devaluation, with the exception of Denmark and Norway, where the exchange rate of national currencies was increased.

Reforms are often confiscatory character. According to the established ratio, a limited number of banknotes are exchanged. In most cases, the confiscation exchange of money is combined with a differentiated revaluation of savings deposits. In post-war Poland and the Czech Republic, they exchanged 500 monetary units per person, no more. In Romania in the same years, 1 new leu was given for 20,000 old lei. Workers and peasants could exchange no more than 3 million old lei per family, all others - no more than 1 million. In Bulgaria, the exchange limit was set at 2000 lei per person, and for enterprises within 50% of the monthly wage fund (but no more 35 thousand leva).

They approached denomination in Yugoslavia in a very interesting way. Residents of Serbia, which actively helped the Allies during the war, exchanged old money at the rate of 20:1. And the residents of Croatia, which helped Hitler, were set at a rate of 40:1.

Devaluation The national currency has long been used to regulate its exchange rate. Devaluation- a process opposite to revaluation, i.e. a decrease in the official gold content of a monetary unit or a decrease in its exchange rate relative to the currencies of other countries. Not all authors attribute devaluation to methods of carrying out monetary reforms, citing the fact that with devaluation, as well as with revaluation, no changes occur in the country’s monetary system - the monetary unit, types of money, the order of issue, the scale of prices, the state apparatus regulating monetary circulation remain the same. Indeed, in modern conditions, the depreciation and appreciation of the currency are more related to the sphere of international monetary relations, but they have an impact on external factors of inflation.

Devaluation stimulates the depreciation of money through the mechanism of imported inflation, and revaluation is used to contain it by reducing the cost of imported goods. If a country's balance of payments remains in surplus for a long time, the central bank may decide to revalue the national currency. But revaluation is not very beneficial to the state. Thus, China, despite the active trade balance and calls from the United States, is in no hurry to revalue the yuan, because this will deprive Chinese goods of an export advantage, which means it will reduce the income of enterprises and the state, slow down the rate of economic growth, which will negatively affect the country's banking sector and require new reforms.* The revaluation of the national currency also increases unemployment, because enterprises in sectors of the economy that cannot withstand competition with cheaper imported goods are closed.

The country's central bank announces devaluation when there is a long-term deficit in the country's balance of payments due to its lack of competitiveness in the world market, which has caused a decrease in reserve assets to a critical point. Devaluation may be open And hidden. With open devaluation, devalued paper money is removed from circulation or such money is exchanged for new, stable credit money (but at a rate corresponding to the depreciation of old money). With hidden devaluation, the state reduces the real value of a monetary unit in relation to foreign currencies without removing the depreciated money from circulation.

An example of open devaluation could be the monetary reform of 1839-1843. in Russia. The depreciated banknotes were exchanged at a reduced rate for banknotes, which, in turn, were freely exchanged for gold and silver at a fixed rate.

An example of hidden devaluation is the devaluation during the period of monetary reforms by S. Yu. Witte in 1895-1897. It consisted in the fact that the exchange of credit notes for gold was restored, but the gold content of the ruble was reduced.

*N. Kirichenko “Boom and yuan - brothers forever”, Profile, No. 34, 2003, p. 28-29.

Devaluation increases prices, which means it reduces imports, and imported goods become more expensive. The population suffers from this, as do enterprises that buy foreign raw materials, parts, equipment, and technologies. The real purchasing power of wages is falling. Deposits are devalued. Devaluation also has some advantages (see pp. 14-15). Export goods become cheaper, and this is a positive side of devaluation, since devaluation thereby favors the development of exports. At the same time, devaluation provokes an increase in inflation rates, since when domestic products become cheaper, producers increase prices on the domestic market (unwinding the devaluation-inflation spiral), further depreciating deposits and savings. That. devaluation reduces the standard of living of the population. The pros and cons of devaluation will be discussed using the example of Russia in the next section.

Devaluation is a decrease in the exchange rate of a national currency in relation to other world currencies. Revaluation, on the contrary, means the strengthening of a currency relative to others.

Currency devaluation and revaluation are natural processes that constantly occur on the world market. All these are methods of stabilizing the economy, which are often used by the Central Bank. The easiest way to change the exchange rate is to sell foreign exchange reserves or increase them.

What is ruble devaluation in simple words

The devaluation process is characterized by a long-term weakening of the national currency in relation to other world currencies. It does not begin independently, but is a consequence of the actions of the Central Bank. Experts use devaluation to solve many of the country’s economic problems.

There are several types of devaluation:

1. natural, which arises as a result of economic problems within the state and requires immediate action from the Central Bank;
2. artificial, which is used by Central Bank specialists to stimulate exports;
3. hidden, which goes uncontrollably;
4. open, recognized by the current government.

Reasons for devaluation

Devaluation of the national currency occurs as a result of the following reasons:

1. incorrect actions of the country in the global financial market;
2. pressure from other countries;
3. oil prices;
4. decrease in GDP;
5. decrease in purchasing power due to high debt burden of the population;
6. economic instability.

The last time devaluation occurred in Russia was in 2014, when some banks gave up to 90 rubles for 1 dollar. But it is difficult to call the process of strengthening the ruble a revaluation, since it was an adjustment of the exchange rate. Many experts believe that the weakening of the currency continues, and the Central Bank artificially keeps the exchange rate within a given currency corridor.

Consequences

Devaluation of the national currency leads to positive and negative consequences. The negative effects include a decrease in purchasing power and the depreciation of money, an increase in inflation, rising prices and a decrease in the number of imported goods on the market.

The positive aspects of devaluation are:

• stimulation of exports, as a result of which a large amount of “hard” currency naturally comes into the country;
• reduction of state budget expenditures on debt obligations in ruble equivalent;
• withdrawal from the market of weak companies that cannot operate in a crisis and real competition.

That is, a depreciation of the national currency helps to improve the economy, which is why the Central Bank periodically resorts to this measure.

In the short term, the process harms the economy, but in the long term it allows us to solve many issues and significantly replenish the country’s budget, since its main part consists of foreign currency. The weaker the ruble, the more money remains in the treasury after conversion.

What factors influence the Russian economy

The biggest impact on the economy is:

• prices for raw materials, since the Russian economy remains dependent on resources;
• current sanctions;
• additional expenses after the annexation of Crimea and active foreign policy in Syria, DPR and LPR.

Due to current sanctions, many companies have stopped working with Russia. Therefore, the flow of foreign currency into the country has decreased. It takes time to fill this deficit.

Thus, the Central Bank resorts to depreciating the ruble to reduce prices for Russian goods on the world market. That is, for manufacturers, currency devaluation means the opportunity to sell more for foreign currency, so cooperation with domestic buyers fades into the background.

What is the difference between inflation and devaluation

Inflation and devaluation have a fundamental difference, despite the fact that these processes have the same impact on the national currency. The devaluation of a national currency consists of its rapid depreciation in relation to leading world currencies. This process differs in its duration. The policy of weakening the ruble is being pursued exclusively by the Central Bank. An exception is cases when the currency is not controlled by the state, and its exchange rate directly depends on external and internal economic factors.

Inflation is considered a more complex concept, which also negatively affects the value of money. In simple words, this is the process of rising prices and depreciation of money as a result of various financial factors, including an increase in the money supply in circulation. To better understand the issue, it is necessary to understand the reason for the occurrence of each process.

Why does inflation happen?

Inflation is a natural process that reduces the value of savings. Because of this, prices are gradually rising. Global economic processes do not affect the level of this indicator in the country.

Here are the main reasons for its occurrence:

1. reduction in GDP while maintaining the volume of money supply;
2. issue of securities, which increases government expenses;
3. increased level of debt load of individuals and legal entities;
4. monopoly in certain areas of the economy.

The main indicators of inflation are the consumer price level, producer price index, deflator, Paasche index and purchasing power parity. That is, it is necessary to pay attention to certain nuances to control the level of inflation.

In developed countries, an inflation rate not exceeding 3-4% is considered normal.

The most effective control tool is considered to be changing the refinancing rate. The decision to change it is made by the Central Bank. That is, inflation is an uncontrollable process that can be stopped with the help of certain economic factors. However, it is difficult to predict exactly how the market will behave in a particular situation.

When is devaluation used?

Most often, it occurs by decision of the country’s Central Bank, which decides to reduce the real value of the currency for:

• overcoming the crisis and avoiding default;
• export promotion;
• economic recovery;
• solutions to other economic problems.

It is worth understanding that the process provokes an increase in prices within the country and the withdrawal of some foreign goods from the market. The value of money declines, leaving residents and businesses facing liquidity and cash shortages in the short term.

Devaluation is a reform that cannot occur without the control of the Central Bank. This is the main difference from inflation, which exists regardless of the wishes of experts.

Denomination and devaluation

Today, denomination and devaluation are actively used by the central banks of countries to regulate the exchange rate of the national currency. This allows us to stimulate exports and solve a number of financial issues.

Redenomination is an attempt to strengthen the national currency by reducing the denomination of monetary units. In Russia, this process took place in 1998, when old banknotes were replaced with existing ones (3 zeros were removed).

The result of the denomination process is usually the following:

• rising prices on the domestic market;
• reduction in the value of household savings;
• export promotion;
• a significant decrease in the level of attractiveness of the country for imports.

There is a decrease in the level of production within the country. It usually takes several years for the economy to recover.

An additional goal of the denomination is to identify illegal income from the population and organizations. Despite the possible decline in the exchange rate initially, the final goal is its strengthening. Devaluation has the goal of stimulating exports.

From time to time you can hear rumors among people about a possible denomination. At the same time, some believe that during this period it is profitable to take loans in national currency, others watch the economy with fear, not rejoicing in the future. So, is denomination good or bad? What processes in the economy can we talk about if the need for denomination arises?

Where does denomination come from?

Denomination is inextricably linked with the concept of inflation. The latter is typical for every state to one degree or another. The lower the inflation rate, the more reasonably we can talk about the stability of the state’s economic system.

Inflation is an increase in the price level caused by the excess of demand for a product over supply. Insufficient production volumes necessitate higher prices for goods to cover production costs. The ideal inflation rate is considered to be 3-5%, but such figures are not often encountered. With a price increase of 20%, there is a need for monetary reforms.

Currency reforms

Each country has a certain amount of funds. When prices rise, there is a shortage of national currency, that is, the total volume of prices exceeds the volume of currency, which necessitates its additional issue.

Since each monetary unit is backed by gold, the additional issue of monetary units causes their depreciation.

In connection with the increase in prices, banknotes with a higher denomination are issued, that is, in simple terms, an increase in the digit of the banknote, or the addition of zeros. Over time, there is a need to carry out monetary reforms designed to increase the value of the country's currency.

In order to strengthen the monetary system, they resort to changing the national currency, the gold equivalent of paper money, the monetary system, and issuing new money.

Reforms include nullification, restoration, devaluation and redenomination.

Read more about monetary reforms

Nullification is the procedure of replacing a depreciated monetary currency with a new one. Often this reform is carried out when the country's leadership changes.

The economy can also experience revaluation, or restoration, which means the reverse process of devaluation. Revaluation allows you to increase the value of a country's monetary units by backing the currency with more gold. The phenomenon of revaluation is more rare than other methods of stabilizing the economy.

The concepts of devaluation and redenomination are more understandable to the population due to their more frequent occurrence. Devaluation and redenomination - what is it?

Devaluation and redenomination

Devaluation involves the process of cheapening a monetary unit, that is, reducing the gold equivalent of a banknote. This causes an increase in the export price of goods, but at the same time it also increases the prices of foreign goods. Also, when talking about devaluation, they say that the national currency has become cheaper compared to the foreign one.

Currency denomination is a change in the nominal value of banknotes (reduction), which occurs in a certain ratio. In the history of almost every state there has been a denomination, and often more than one. Thanks to this process, payments for goods become more convenient. How to answer the question: “Denomination - what is it?” in simple words? This is a reduction of zeros in the denomination of banknotes. So, 100,000 becomes 10,000, 1,000, etc. This reduces the volume of banknotes in the country, which simplifies the system of payments for goods and services.

Some sources report that denomination is a monetary reform, the types of which are all three listed above.

Ruble denomination

In the history of Russia (USSR) there were 4 instances of denomination: in 1947, 1961, 1991 and 1997-1998. In 2007-2008, there were rumors about a possible denomination, but it never happened. In the Russian Federation, denomination is usually carried out after a period of crisis and occurs by Decree of the President of the Russian Federation.

So, ruble denomination - what is it and does it have its own characteristics compared to other countries? Remembering previous episodes of denomination, people say that thanks to it, at one time it was possible to pay off the cost of real estate or repay a loan in a short period of time. So is denomination bad in the Russian economy or not?

The most appropriate in the conditions of the Russian economy is to reduce the denomination of the ruble by 1000 times. Denomination is a procedure that makes the national currency heavier. Thus, if the denomination of banknotes is reduced to less than 1,000, the denomination will be less effective, and with a denomination of 10,000, the ruble would be comparable in weight to the British pound, which is considered a fairly heavy currency. In this case, by reducing the zeros, prices would be rounded, which would increase the cost of goods, given the increase in the value of money itself.

Denomination, in principle, is beneficial for the state. Despite the fact that issuing new money is a significant expense for the state, it allows them to develop new degrees of protection. This protects banknotes from counterfeiting.

When exchanging old banknotes for new ones, both those and other money remain valid. In this case, the exchange can occur both when contacting a bank, and directly during payments in stores, at the discretion of the country’s leadership.

Forecasts for denomination in Russia

Today, holding a denomination in Russia is unlikely. As analysts say, banknotes today do not have an extra number of zeros, which would necessitate this. Even in a crisis today, it is more appropriate for the Russian economy to use other methods of stabilizing the monetary unit.

In addition, redenomination is a monetary reform, which usually causes an increase in the level of inflation, and significant funds are needed to carry out redenomination, so the country’s leadership will not agree to this.

There is also no need to talk about the benefits of denomination for the population, because when denomination is carried out, both prices decrease, for example, by 100 times, and income decreases.

There are conditions under which there are prerequisites for the successful implementation of a denomination. These include the presence of production growth, that is, providing the state with the necessary volume of a particular product in order to prevent a supply shortage. Positive prerequisites also include the absence of the need to issue money, that is, additional issue of banknotes, as well as the presence of a gold and foreign exchange reserve that provides support for the national currency. In each specific case, the purpose of the upcoming reform matters.

Consequences of denomination

Such a monetary reform cannot occur without consequences for the economy.

These consequences are:

• Increase in export volume, which allows you to get more national currency or goods per unit of foreign currency.
• Rising prices for foreign goods, which is the downside of export growth.
• The emergence of difficulty in storing savings in national currency due to their withdrawal from circulation. This applies to both money stored at home and savings in the bank.
• Problems arising with the import of equipment.
• Increase in the cost of loans in foreign currency(it can grow several times).

Denomination and religion

Denomination is not only an enlargement of a banknote, but also a specific term related to religion. Denomination in religion is a concept that has several meanings. In the first meaning, it is synonymous with the concept of “confession,” which is clear to the majority (a feature of religion within a certain religious teaching).

According to the second meaning, it is a religious community that has an intermediate position between a sect and a church.

Previously, a denomination was a name for religious movements that were just beginning to develop (the term appeared in the era of the Reformation).

Features of a religious denomination

Speaking about a denomination in the context of an association that combines the features of a church and a sect, it is necessary to have an idea of ​​what exactly the denomination borrowed from both.

A sect usually recognizes only the faith that it professes, denying all others. The denomination is religiously tolerant, recognizing other religions and beliefs, which unites it with the church. In addition, the denomination borrowed hierarchy and its open type in relation to the outside world from the church. It recognizes the possibility of soul salvation if a person has sufficient faith.

At the same time, this confession has existed for a relatively short time, just like sects. She is also connected with the sect by active religious activity, opposing herself to the church.

In the structure of a religious denomination, a vertical system of subordination and a horizontal system of distribution of responsibilities are distinguished.

There is some inconsistency in the fact that the denomination recognizes the equality of all its members, and at the same time, within it there is a division into the elite and ordinary members of the community. The elite has broad powers and opportunities.