Abstract: The necessity and essence of money. Economic essence and the need for money The need for money and its essence
Concepts of the origin of money. Money appeared thousands of years ago and has long been the subject of study, first by ancient thinkers, and then by economic science as an independent field of knowledge. However, despite the fact that a large number of scientific works are devoted to the problems of money and monetary circulation, a generally accepted theory of money has not yet been developed. On the contrary, there are significant disagreements among economists on all the main issues of monetary theory, such as the reasons for the emergence of money, the essence of money as an economic phenomenon, the composition and content of the functions it performs.
Thus, currently there are two main concepts of the origin of money - rationalistic and evolutionary. Within the framework of these concepts, fundamentally different approaches are used to interpret the need for the appearance of money.
The rationalistic concept of the origin of money historically arose first. It uses a subjectivist-psychological approach to explain the emergence of money and the development of its forms: it is argued that money was deliberately invented and introduced by people to facilitate the process of exchange and a more rational organization of exchange transactions.
Thus, this theory explains the emergence of money by non-economic reasons, considering its appearance as the result of a psychological act, a subjective re-name of people, which either took the form of an agreement between people, or was expressed in the adoption of a corresponding law by the state. It is assumed that at a certain stage in the development of commodity exchange, people realized the inconvenience of direct barter transactions and invented money as a tool to facilitate exchange and reduce its costs.
The rationalistic concept of the origin of money was first formulated by the ancient Greek philosopher and scientist Aristotle, who believed that money became money not by its internal nature, but by force of law, so people can change this law and make money useless. It was dominant in economic science until the 19th century. Currently, most Western economists adhere to it. So, for example, P. Samuelson considers money to be an artificial social convention, M. Friedman - that it is an experimental theoretical construct.
The early stages of the development of Western monetary theory were characterized by the absolutization of the role of the state in the emergence of money: the state creates
money in the process of issuing it and legislatively endowing it with purchasing power - therefore, money is a creation of state power. Modern Western economists no longer adhere to a purely legal interpretation of the origin of money and consider law only as one of the reasons for its emergence. They believe that the difficulties of exchange in a barter economy led to an agreement between people to use a unit of account, a standard medium of exchange, and then this agreement was enshrined in government law.
Explaining the emergence of money by the shortcomings of direct commodity exchange, Western economists identify two main problems of barter transactions:
1) search for a double match, that is, two commodity producers who are mutually interested in purchasing each other’s products. Usually the number of possible combinations of exchange is calculated for a given number of goods participating in the exchange, which illustrates the ineffectiveness of direct exchange of goods: in order to exchange his goods for the goods he needs, the commodity producer may be forced to make many exchanges until a double coincidence of interests occurs;
2) determining the prices of goods and services. In a monetary economy, each product has only one price, expressed in monetary units, which means the total number of prices is equal to the number of goods involved in the exchange. In a barter economy, each good is valued in terms of the other goods for which it is exchanged. In this regard, as the product range increases, the number of prices quickly increases, which makes exchange very difficult (for example, if 1 thousand different goods are involved in the exchange, then the number of prices in a barter economy will reach almost 500 thousand).
With the development of production and the increase in the scale of trade, direct barter increasingly complicated the exchange between producers of products. These difficulties led to the fact that people began to use money to facilitate the exchange process, as a result of which the number of necessary exchange transactions and prices used was sharply reduced, and circulation costs were optimized.
Thus, according to Western economists, money was invented by people to use it as a technical instrument of exchange to reduce costs and increase the efficiency of commodity circulation. According to the rationalist concept, money is a product of people's consciousness, and not of the objective development of the processes of production and exchange.
In the domestic economic literature, the evolutionary theory of the origin of money is generally accepted.
The evolutionary concept of the origin of money was first developed by K. Marx. To explain the need for money, he used a historical-materialist approach, according to which in the production process people, regardless of their will, enter into certain necessary production relations that develop according to objective laws. From these positions, the origin of money is explained by the objective laws of development of reproduction.
The evolutionary concept proves that money did not appear suddenly, by force of law or agreement, but spontaneously, as a result of a long process of development of exchange relations. In other words, money is an objective result of the development of the process of commodity exchange, which in itself, regardless of the desire of people, gradually led to the spontaneous separation of a specific product from the general mass of goods, which began to perform monetary functions.
In this concept, the appearance of money is associated with the beginning of the transition from a subsistence economy to a commodity economy, with the development of forms of value (forms of expression of value). The object of the study is the commodity as a unity of use and exchange values.
Goods are created in the production process by labor, which has a dual character: on the one hand, it is a type of concrete labor that has a private nature and creates the use value of the product, on the other hand, it is part of general social labor , creating the value of the product. But the social character of the labor expended on the production of a commodity can only manifest itself in exchange by equating different commodities, and the value of commodities can find expression only in the form of exchange value.
Analyzing the historical process of development of exchange, K. Marx identified four forms of value.
* The simple (random) form of value corresponds to the earliest stage of the development of exchange, when it was random in nature, and the objects of exchange transactions were, as a rule, products that for some reason were in abundance. This form of value is expressed by the equality x of goods A = y of goods B.
Here, commodity A plays an active role, expresses its value through its relationship to commodity B, and commodity B acts as the equivalent of commodity A. Thus, commodity A acts as a product of specific, private labor, as a use value, and commodity B acts as an expression of value , the embodiment of abstract labor.
The full (expanded) form of value corresponds to the stage of development
* exchange, when it has already become quite regular, but the process of formation of permanently functioning regional markets has not yet been completed. With this form of value, each commodity expresses its value through a plurality of commodities:
In contrast to the simple form of value, where the proportions of exchange may turn out to be random, in the full form of value the dependence of exchange proportions on the value of goods becomes obvious. Its disadvantage is the incompleteness of the relative expression of the value of the product playing an active role (product A), since its value can be expressed by more and more new goods in an equivalent form.
The general form of value corresponds to the stage of development of exchange, when specific goods were allocated in regional markets, to which the functions of a universal equivalent were assigned. This form of value is expressed by the equation:
As a universal equivalent, different peoples and different periods of time used different goods - depending on natural conditions, national traditions, the nature of production activities, etc.
The monetary form of value replaced the universal form with the development of regional markets and international trade, when noble metals, mainly gold and silver, began to be used as a universal equivalent. The monetary form of value can be expressed in the form of the following equation:
With the approval of the monetary form, the value of a commodity received the form of its price. According to K. Marx, the transition from the general form of value to the monetary one did not mean any significant qualitative changes, since the problem of money finds its solution already in the general form of value and endowing the universal equivalent with the status of money does not affect its essence as an economic category. Gold is a universal equivalent only because it itself has a commodity nature and has value. The emergence of the monetary form of value only means that, due to social habit, the form of the universal equivalent has merged with the natural form of gold.
So, according to the evolutionary concept, money appeared as a result of the development of forms of value (exchange value).
The prerequisites for the emergence of money are the social division of labor and the economic isolation of commodity producers. The transition from one form of value to another is associated with the expansion of exchange and the deepening of the internal contradictions of the commodity - between public and private labor, between use value and value. The allocation of an equivalent product in the process of exchange was due to the need to account for the value of social labor spent on the production of goods.
The role of the state in the development of monetary relations - minting coins, issuing banknotes - is formal and reflects the objective need to improve the forms of money. Noble metals became a universal value equivalent due to the objective laws of the development of commodity production; the purchasing power of coins made from these metals was determined by their internal value, and not by the will of the state.
Thus, in the evolutionary concept, money is considered as a commodity of a special kind, spontaneously emerging from the commodity world to serve as a universal equivalent. They are not a technical instrument of exchange, but a historically determined form of economic relations between people in the process of commodity exchange.
The essence of money. In domestic economic science, considerable attention has always been paid to questions of the theory of money. During the Soviet period, the general methodological basis for studying the essence of money and the peculiarities of the development of its forms was the monetary theory of K. Marx, based on the theory of labor value. However, the process of demonetization of gold has led to the emergence of a wide range of often opposing views on the nature of credit money in a modern market economy.
The transition to a market economy, which led to the de-ideologization of the science of money, made it possible to use not only the rich domestic theoretical heritage, but also the achievements of Western economic thought in the study of money problems. However, none of the concepts and points of view presented in the economic literature provides a holistic and consistent explanation of the nature of modern money. There is also no generally accepted theoretical definition of money.
It should be noted that for the domestic monetary theory, in contrast to Western concepts, the analysis of money as an economic category, that is, as a generalized abstract (theoretical) expression of objectively existing production relations, their various manifestations and properties, is traditional. Currently, the most common characterization of the essence of money is:
* money is a historical category of commodity production in which economic relations between people are manifested. With the help of money, relationships are established between participants in the market economy - independent commodity producers who, without being directly related to each other, enter into relationships through exchange;
* money is the universal equivalent of goods, capable of being directly exchanged for any good or service and, on this basis, ensuring the universal exchangeability of goods. As a general equivalent, they represent a separate form of exchange value and are used to determine exchange proportions in the exchange of goods;
* the essence of money is manifested in the performance of its functions - measures of value , means of circulation, means of payment, means of storage and world money.
At the same time, after gold left circulation, the characterization of modern credit money, irredeemable for gold, as a universal equivalent and its function as a measure of value cause heated debate. The range of questions that the domestic monetary theory has not yet given an unambiguous answer includes the following: does gold continue to serve as a measure of value and whether it remains a monetary commodity; if gold has completely lost its monetary functions, then what is the nature of modern money, are they a commodity; If they are not a commodity and have no value, then how can they act as a universal monetary equivalent?
One of the main unresolved problems is the problem of the value nature of money. Existing points of view can be reduced to two main directions that have been developed in domestic economic literature since the 70s of the 20th century. and were known as the gold and anti-gold concepts.
According to golden concept, gold retains its role as a monetary commodity, a universal equivalent, although in modern conditions it has changed the forms of its functioning and plays the role of a monetary commodity in a hidden form (through the functioning of gold markets and acting as a treasure).
Supporters of this trend believe that gold, having transferred a significant part of its functions to credit money, still serves as a measure of value; the gold pricing mechanism continues to operate; credit money, as before, are signs of gold, representing it in circulation.
According to representatives of the gold concept, the recognition of the loss of all monetary functions by gold and their transition to fiat credit money essentially means the recognition of a change in the essence of money. From their point of view, credit money has a commodity character only insofar as it represents a monetary commodity - gold. Having lost its connection with gold, modern money also loses its commodity nature, that is, it ceases to be a commodity and turns into tokens of account, a technical instrument of exchange.
According to anti-gold concept, in modern conditions, gold has ceased to be a monetary commodity, does not perform practically any function of money and does not act as a universal equivalent. It is only a historically specific functional form of money, which has been replaced by a new, more progressive form - irredeemable credit money that performs all monetary functions.
This point of view is shared by the majority of domestic economists. The loss of gold's function as a measure of value and its role as a universal equivalent is, as a rule, justified by the fact that it is no longer used in circulation - there is no direct exchange of gold for other goods.
All representatives of this concept agree that modern credit money is completely independent of gold. At the same time, within this direction there is a significant diversity of views on issues relating to the essence and functions of credit money. They can be divided into two main groups, depending on their theoretical positions, which boil down to the following:
1) modern credit money performs all the functions of money, including the function of a measure of value, and, therefore, plays the role of a universal equivalent;
2) modern credit money does not have its own internal value, therefore it cannot perform the function of a measure of value (and does not perform it in practice) and is not a universal equivalent.
* Recognition of modern fiat money as a truly functioning universal equivalent requires a fairly convincing justification of how they perform the function of a measure of value. In order to measure the value of goods, credit money itself must have a certain value. Proponents of this position have developed a number of concepts to explain the origin of such value.
It is quite common concept of representative value of credit money. According to this concept, modern money has no intrinsic value of its own. They are allowed to perform all monetary functions, including the function of a measure of value, because they have a representative value, which they receive in the sphere of circulation from goods. Moreover, the existence of a representative value of credit money gives grounds for some economists who share these views to consider modern money as a special commodity; other economists believe that, having a representative value, money is a universal equivalent in non-commodity form.
Most supporters of this concept believe that modern money represents the total value of all goods circulating on the market, which embodies the socially necessary labor spent on the production of these goods. Thus, credit money acts as a universal representative form of the value of goods. However, within the framework of this approach, the mechanism for determining the amount of value that a single monetary unit represents has not been explained.
Some economists believe that modern money does not derive its representative value from the entire mass of goods - it represents the value of one specific product, which in modern conditions has become a value equivalent instead of gold. For example, labor and credit as a product-service are offered as such goods.
Monopoly price theory of money considers them as a specific monopoly product that has a value, on the basis of which they perform the function of a measure of value. At the same time, the value of money simultaneously appears in two forms: firstly, in the form of its own internal value, created by the labor spent on its production and organization of money circulation; secondly, in the form of exchange value, which allows modern money to serve as a universal equivalent.
The exchange value of money is formed under the influence of two main factors - the social utility of money, which generates a constant demand for money from participants in commodity circulation, as well as the limited supply of money due to the state monopoly on its issue. Thanks to the action of these factors, the exchange value of money always exceeds its own value.
Non-commodity money concept proceeds from the fact that modern credit money does not have its own internal value, but the so-called pure, anti-cost value, which is formed separately from the non-commodity monetary medium - within the framework of the commodity production system - and is combined with it on the market.
The mechanism of formation of anti-cost value by representatives of this concept is explained as follows. The value of money is created by the entire modern system of commodity production, which, unlike previous stages of development of commodity production, is characterized by continuous updating of the range of goods and competition between different types of goods. Under these conditions, the value of each product ceases to depend on its use value and is created by the entire system of commodity production.
In other words, the value of each commodity is part of the value created by modern production as a system. This value is anti-cost, since the equalization of labor is carried out not according to its costs, but based on the social significance of labor, determined by the entire system of commodity production.
Thus, at present, it is no longer gold as an equivalent commodity that makes commodities commensurate, but the system of commodity production itself. In this regard, it becomes possible to form the value of money without a monetary commodity. In modern production, the value of goods is “pure”, not associated with specific use values, so its carrier is not any product, but credit money, acting as signs of value.
Representatives of this concept consider credit money as non-commodity money, since it does not have internal value and use value in the generally accepted sense of the word.
* The approach, according to which fiat credit money does not have value and therefore cannot act as a universal equivalent, is based on the assumption that in modern conditions there is a further development of forms of value, as a result of which the need for a universal value equivalent as such disappears. In particular, there is a transformation of the monetary form of value into the so-called “expanded monetary” form of value.
According to this point of view, value is not an essential property of money. The transition from the circulation of real money to the circulation of modern credit money, devoid of value, led to a transformation of the functions of money. It became possible to establish cost and price relationships between goods without the participation of a monetary equivalent, on the basis of price proportions that have developed historically through money under the operating conditions of the gold standard system.
Thus, at present, each product expresses its value not in monetary terms, which have its own internal value, but through credit money - in all other goods. This means the development of a new form of value, expanded monetary, in which value proportions are established on the market through direct confrontation of goods, mediated by money.
No longer being a universal value equivalent, money becomes a simple intermediary in the exchange of goods, a tool for equating the values of various goods to each other. In this regard, modern money is money of account and does not perform the function of a measure of value, but the technical function of measuring values (price scale).
Functions of money. The role of money in a market economy. Money plays a fundamental role in all modern economies. Moreover, they seem to be such a natural characteristic of the economy that we cannot imagine how extremely difficult life would be without them.
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Topic No. 1. .
1. The need for money.
2. The essence of money.
3. Functions of money.
4. The role of money.
5. Fundamentals of ensuring the stability of money.
1. The need for money.
The need for money is caused by commodity production.
Commodity production involves consideration of the general reasons that explain the need for commodity production and, consequently, the need for money in all economic formations.
The general reason for the emergence of money is the social division of labor. Commodity production is possible without money, but money cannot exist without commodity production.
Private reasons explain the need for money in a specific socio-economic formation.
General and specific reasons do not exclude, but complement each other.
Private reasons:
1. The direct labor of a private producer is private labor. Social recognition of labor is only possible through exchange, thus the social character of labor is hidden.
2. Heterogeneity of labor, which determines the distribution of material goods depending on human costs.
3. The level of development of productive forces predetermines the distribution of material goods according to energy costs.
4. Labor has not become the first vital necessity of every member of society, therefore stimulation of labor costs is required. The most effective method is financial incentives.
5. The presence of different forms of ownership of the means of production and products of labor.
6. The unconscious attitude of some members of society towards the consumption of material goods.
7. The presence of an international division of labor, international economic relations, requiring an equivalent exchange of labor products between countries.
The minting of coins began in the 10th and 11th centuries, then was interrupted by the Mongol-Tatar invasion. The term “ruble” originated in the 13th century in Novgorod and meant half a hryvnia (a silver bar weighing 200 grams). Half a ruble was called poltina, and later the Moscow ruble. At that time, the ruble served as a payment and weight unit. Coinage resumed in the second half of the 15th century. The ruble lost its significance as a unit of weight and became a unit of account.
1704 - reform of Peter 1: the decimal monetary system was introduced and legalized.
1841 - the paper credit ruble was first introduced into circulation.
1919 - the first Soviet ruble was issued in the Russian Federation.
On January 1, 1991, the gold content of the ruble was abolished in the Russian Federation and the issuance of treasury notes was stopped. The central bank is prohibited from issuing funds to cover state budget expenses.
At the end of the 80s, the first credit cards appeared in our country (Vnesheconombank, Sberbank, Kredobank).
Modern monetary circulation in Russia.
Quantitative characteristics usually indicate a rise or decline in industrial or agricultural production, an increase or decrease in the volume of capital investments, household incomes, the growth rate of trade turnover, etc.
Qualitative characteristics allow us to judge:
· faster growth rates of industry group A relative to industry group B or vice versa;
slowdown or acceleration of wage growth;
· growth or decline in the production of goods in different sectors of the economy;
· changes in monetary indicators.
1) dynamics of wages: according to the law of October 20, 1995, the minimum wage is:
2) living wage:
January 1995 179.5 thousand rubles August 286,
employment 208 labor capacity 332,
children 181 children 291.
3) unemployment: 7.8% of the working population or 72 million people; 2.5 million people are officially registered.
4) inflation (according to IMF data):
Years 1991 1992 1993 1994 1995
% 2000 1353 800 500 204
An inflation rate of 2-5% is considered normal.
5) privatization: from January to October 1995, 6,561 enterprises were privatized, since the beginning of privatization - 118,000. The cost of privatized enterprises and land is 1 trillion 407 billion rubles. Privatized enterprises employ approximately 1 million people. More than half are so-called small privatization enterprises.
In 1995, 1 trillion 691 billion rubles were received from privatization. In the same year, Moscow became the most expensive city for businessmen.
The foreign exchange reserves of the Central Bank of Russia amount to $10 billion, of which 75% are stored in US dollars, 20% in German marks, 5% are in other currencies. The gold reserves of the Central Bank and the Ministry of Finance amount to 240 tons, of which half are the reserves of the Central Bank. At the beginning of 1995, the stock was 133 tons.
Main measures to stabilize monetary circulation:
1. It is necessary to increase production.
2. Stop emissions to cover the state budget deficit.
3. Increasing the volume of inventory.
4. Increasing gold and foreign exchange reserves.
5. Devaluation, revaluation, nullification, monetary reform, change in price level (scale), redenomination, ...
2. The essence of money.
1. Money as the universal equivalent of goods.
2. Money as an expression of production relations (money as an economic category).
3. Money as a form of universal direct exchangeability.
4. Money as an external material measure of labor.
5. Gold content of money.
6. Credit nature of money.
7. Definition of money.
Essence is the internal content of an object, expressed in the unity of all its diverse properties and relationships.
The essence as the internal content of an object has an external manifestation and appears to us in specific forms of its existence. The essence of money is revealed through the forms of its manifestation.
1) The first form of manifestation is as a universal equivalent of goods. Money is a special kind of commodity that has intrinsic value, and value is measured through this commodity.
A product presented in an equivalent form has a number of features:
1. Private labor contained in an equivalent commodity is a form of manifestation of social labor contained in a commodity in the relative form of value.
2. Concrete labor contained in an equivalent product is a form of manifestation of abstract labor contained in a product appearing in the relative form of value.
3. Use value is a form of manifestation of value contained in a product that is in the relative form of value.
2) Money as an expression of relations of production.
Money is not just a thing, but a thing that expresses certain economic relations. Money is an economic category. The economic category is a theoretical expression, an abstraction of social relations of production.
These relationships, in turn, can be credit (providing a loan), financial (calculation of turnover tax), settlement, etc.
3) Money as a form of universal exchangeability.
One of the features characterizing the essence of money is its universal direct exchangeability for all other goods. (A product is a product for sale, has a use value, manifested in monetary form - value). This property manifests itself in all formations, but is characterized depending on the areas of application of money.
In a market economy, this trait reaches its apogee. Labor power turns into a commodity. The subject of purchase and sale is not only the products of labor, but also natural resources and human moral qualities.
In a socialist society, the scope of use of money is narrowed.
4) Money as an external material measure of labor.
Money is an external measure of labor because money expresses the internal value of all goods.
Thing - each product has only one inherent quality.
A product has value and use value.
Price = cost + profit.
Money expresses value and use value.
The form of money as a form of exchange value - all goods must have an exchange value, which is determined in the process of equating commodity values with money values.
In an administrative economy, there is a planned setting of prices; money cannot turn into a form of abstract wealth (the power of money).
5) Gold content of money.
Banknotes in circulation are usually irredeemable for gold. The exceptions are the French gold franc and the South African currency. Banknotes are representatives of gold, that is, there should be as many of them as gold is needed. It is necessary to distinguish between the concepts of gold content and gold backing of money.
Gold backing requires real gold reserves.
6) Credit nature of money.
In modern conditions, money has a credit nature, which is manifested in the fact that money is issued (should be issued), firstly, in the process of credit operations, secondly, in the process of credit issues, and thirdly, money represents credit operations of the state.
Money is released into circulation for the needs of lending to the national economy, and not for the purpose of covering the budget deficit.
| Indicators | Budget issue | Credit issue | |
| 1 | Purpose of issuing banknotes | to cover the budget deficit | N/H lending |
| 2 | Issuer | treasury or bank against treasury bills or obligations | Central Bank, bank of issue |
| 3 | Emission Features | money settles in the sphere of circulation, overflowing the money channels. appeals are not returned to the issuer | money does not settle in the channels of monetary circulation, does not overflow the channels of money. appeals are returned to the bank in the process of repaying the loan |
| 4 | Securing money | money has no collateral or has reduced collateral. Money depreciates | money is backed by goods and gold and does not depreciate. Money supply is stable or growing |
Budgetary emission was allowed during the 1st Five-Year Plan period for the needs of industrialization of the state, in 1943 for the needs of covering military expenses, but credit emission prevailed, the end of the 80s - above-plan (fiduciary, budgetary) emission was allowed to cover state budget expenses. Since December 1990, the Central Bank has no right, according to the law on the Central Bank, to carry out budget issues.
The credit nature of money follows from the fact that all banknotes are obligations for part of the social product. Thus, the credit nature of money must be considered in three aspects:
1. In the broad sense of the word, these are the obligations of the state to provide necessary goods upon request,
2. In a narrow sense, this is money lent to business organizations, subject to repayment within a specified period,
3. In the specific sense of the word, this is money continuously received by the bank from trading organizations in order to repay loans for goods in circulation.
Visually, paper and credit money are no different.
The main reasons for the transformation of credit money into paper money:
1. state budget deficit,
2. unsatisfied effective demand of the population,
3. imbalances in agriculture and budget,
4. violations in the lending process: extension of loans, non-repayment of interest for use.
The condition for converting money is a violation of the law of the amount of money needed for circulation.
Gold plays the role of money. Causes:
1. Historically, the role of universal equivalent is assigned to a certain commodity, which is gold, a thing, a metal.
2. Legally, this role was enshrined in our country by the decrees of the Soviet government “On the gold content of the monetary unit.”
Since the end of 1990, the ruble has no gold content. Previously it was 0.987412 gr. It was a purely nominal value, there was no exchange for gold.
3. Gold has specific qualities:
Divisibility,
Portability,
Storability,
High price.
Can express all other goods.
7). Money is the universal equivalent of goods; its role is played by gold.
In general, the question of the essence of money has a number of different interpretations, incl. positions Z.V. Atlas, A.Ya. Kronrod, V.S. Gerashchenko.
1 group of economists considers money from the perspective of the commodity nature of production. Positions that consider cost in a classic style are highlighted. Positions:
1. Money is an equivalent commodity that has intrinsic value: Konnik, Usoskin, Krasavina, Zaitseva, Gerashchenko.
2. Based on the law of value, money measures value, but not in a material mechanism, but in another: Kashin.
Group 2 - a position that considers modification of the law of value. Positions:
1. Money is a special commodity that has a representative value. The role of the universal equivalent is played by credit money: Shinaev, Matyukhin, Belechenko, Bozhan.
2. Money is not considered as a commodity, but a new generic essence of money is considered: Kogan, Kozakevich.
3. Denies money as a universal equivalent of goods in general: Pevzner (each product expresses its value in all other goods, money turns from a measure of value into a co-measurer - counting units).
Group 3 - non-commodity nature, denies the law of value. Believes that under socialism there is half-money, because socialist semi-commodity production: Bader, Andres.
Money, being the universal equivalent of a commodity, reflects production relations and serves as a means of accounting, control, regulation of production and distribution of the social product.
Money is secondary, derived from the essence of money. Therefore, the ongoing modifications of the functions of money must be considered based on an analysis of the essence of money. Due to the fact that the essence of money was understood differently by scientists of the past, and is interpreted by modern theorists and is presented differently in different theories of money, the presentation of issues relating to the functions of money is also ambiguous: there is...
Aspects in the study of the concept of money, its essence, main types, functions. To achieve this goal, the following tasks were solved in the work: the origin and identification of the essence of money, consider the functions of money in the economy, study monetary circulation. In this test I used the following literature: 1. Arutyunova G.I. Economic theory for students of technical universities; ...
Stages of the development of money: The emergence of money with the performance of its functions by random goods, the consolidation of gold as a universal equivalent, the transition to paper or credit money, the gradual displacement of cash from circulation, the emergence of electronic payments. Most economists deduce the essence of money from the functions it performs and state that anything that is recognized can be money...
Storability and portability). From that time on, the entire commodity world was divided into two parts: into the “commodity mob” and a special commodity that plays the role of a universal equivalent - money. Thus, the essence of money lies in the fact that it is a specific commodity form, with the natural form of which the social function of a universal equivalent merges. The essence of money is expressed in the following: 1) money – ...
Introduction.
1. The necessity and essence of money.
2. Functions of money.
3. The role of money in a market economy.
Conclusion.
List of used literature.
Introduction.
Money plays a fundamental role in all modern economies. Moreover, they seem to be such a natural characteristic of the economy that we cannot imagine what life would be like without them, probably extremely difficult. Even carrying out simple purchase and sale transactions would be too difficult and burdensome.
We are all intimately connected to money—to the cash in our pockets, to our checking accounts, to the value of our wealth. But we rarely think about how strange the nature of money is. We spend our energy on making money, but every banknote is just a piece of paper that has no intrinsic value. Only the government can print money, but there is far more money in the form of checking and savings accounts than the government has ever issued.
Our modern financial system, containing cash, checks, automatic payment machines and a variety of complex financial instruments, did not arise overnight. But the core of this system is money.
Money is an item that serves as a generally accepted medium of exchange or means of payment. The most essential characteristic of money is that it is accepted by everyone in society as a means of payment. In this case, it does not matter at all what the product used as money is. Thus, dog teeth will be exactly the same money as dollar bills if all other people agree to accept them in transactions.
The first type of money was goods. Gold and silver were also used as money. Today, however, this is history. Over time, paper money and then checking accounts became the universal means of payment. They all have the same fundamental property - they are accepted as payment for goods and services.
In my work I will consider the origin of money, the essence of money and its role in a market economy. Since the essence of money can be most fully characterized through the functions it performs, in this work the following functions of money will be analyzed:
Money as a measure of value;
Money as a medium of exchange;
Money as a means of accumulation;
Money as a means of payment;
World money.
1. The necessity and essence of money.
Money is one of those things that accompanies us throughout our lives. Money casts a spell on people. Because of them they suffer, for them they work. They come up with the most ingenious ways to spend it. Money is the only commodity that cannot be used otherwise than to free oneself from it. They will not feed you, clothe you, shelter you, or entertain you until you have used them up. People do almost everything for money, and money does almost everything for people.
However, how did money come into being? In primitive societies, when market relations were not yet established, natural exchange prevailed, i.e. one product was exchanged for another without the mediation of money (T - T). The act of purchase was also an act of sale. A direct exchange of goods for goods can only take place if the seller has a need for exactly the goods that are offered for exchange by the other party. This also presupposes that other commodity producers have the opportunity to present for exchange products needed by a given manufacturer, and accordingly, this manufacturer has products needed by another commodity producer.
Consequently, the exchange of goods can occur if the parties entering into the exchange transaction have the necessary goods. However, this significantly limits the possibilities of exchanging goods. In addition, during exchange, the interests of commodity producers must be taken into account and the requirement of equivalence of the value of the goods exchanged must be met, which in turn also limits exchange, including due to the indivisibility of the goods exchanged (for example, cattle).
People still return to spontaneous natural exchange. In international trade, barter transactions are still carried out today, where money acts only as units of account. In a system of mutual settlements (clearing), the difference is usually repaid by additional deliveries of goods.
As exchange expanded, especially with the emergence of a social division of labor between product producers, difficulties arose in barter transactions. Barter became cumbersome and inconvenient. The owner of the fish, in order to preserve its value and facilitate further exchange transactions, will probably try to exchange his fish for such a product that can most often be found on the market.
Thus, some goods, acquiring a special status, began to play the role of a general equivalent. Moreover, this status was established by general consent, and was not imposed by someone from the outside. Among some peoples, wealth was measured by the number of heads of livestock, and the herds were driven to the market to pay for intended purchases. The acts of purchase and sale no longer coincide, but are separated in time and space. In Russia, exchange equivalents were called “kunami” - from marten fur. In ancient times, “fur” money was used in part of our territory. And money in the form of leather circulated in remote areas of the country almost in Peter’s times.
The development of crafts and especially metal smelting simplified matters somewhat. The role of intermediaries in exchange is firmly assigned to metal ingots. Initially it was copper, bronze, iron. These exchange equivalents expand their scope and stabilize, thereby becoming genuine money in the modern sense. The exchange is already carried out according to the formula T – D – T.
The fact of the appearance and spread of money does not directly lead to an increase in the consumption of goods and services in society. They consume only what is produced, and production is the result of the interaction of labor, land and metal. The indirect influence of money on production is undeniable. Their use reduces costs, the time required to find a partner, promotes further specialization of labor and the development of creativity.
As social wealth increases, the role of the universal equivalent is assigned to precious metals (silver and gold), which, due to their rarity, high value with low volume, homogeneity, divisibility and other useful qualities, were, one might say, doomed to play the role of monetary material for a long time. period of human history.
The emergence of money and its use was accompanied by important consequences. The emergence of money made it possible to overcome the narrow framework of mutual exchange of goods between individual producers and create conditions for the emergence of a market in the operations of which many owners of different goods could participate. This, in turn, contributed to the further development of production specialization and increased efficiency.
The use of money is no longer limited to participation as an intermediary in the processes of exchange of goods. On the contrary, the functioning of money acquires the features of an independent process: commodity producers can store the money received from the sale of their goods until they purchase the desired product. From here, monetary savings arose, which could be used both to purchase goods and to lend money and pay off debts.
As a result of these processes, the movement of money acquired an independent meaning and was separated from the movement of goods.
The functioning of money gained even greater independence in connection with the replacement of full-fledged money, which has its own value, with banknotes, as well as with the subsequent abolition of the fixed gold content of the monetary unit. At the same time, money that did not have its own value began to function in circulation, which made it possible to issue banknotes in accordance with the need for circulation, regardless of the presence of gold backing.
The independence of the functioning of money expanded significantly with the advent of non-cash payments, including payments based on the use of electronic technology.
The essence of money is that it serves as a necessary active element and integral part of the economic activity of society, the relations between various participants and links in the reproduction process.
The essence of money is characterized by its participation in:
Implementation of various types of social relations;
Distribution of gross national product (GNP), in the acquisition of real estate and land;
Determination of prices expressing the cost of goods.
The production of goods (provision of services) is carried out by people using tools and objects of labor. Produced goods have a value that is determined by the total volume of the transferred value of tools and objects of labor, and the value newly created by living labor.
This means that the price, determined in accordance with the socially necessary level of costs for the production of individual goods, allows commodity owners to claim other goods in an amount equal to the cost of the goods produced. This is facilitated by compliance with the requirement of equivalence, fulfilled with the help of money.
In addition, the essence of money is characterized by the fact that it:
They serve as a means of general exchange for goods, real estate, works of art, jewelry, etc. This feature becomes noticeable when compared with the direct exchange of goods (barter). The fact is that individual goods can also be exchanged for others on barter terms. However, such exchange opportunities are limited by the framework of mutual need and compliance with the requirement of equivalence of such transactions. Only money has the property of universal direct exchangeability for goods and other values.
Improves conditions for maintaining value. By storing value in money rather than goods, storage costs are reduced and spoilage is prevented.
When characterizing money, attention is often paid to its commodity origin and, accordingly, its commodity nature. The commodity origin of money can hardly be doubted. However, gradually, including in connection with the transition from the use of full-fledged money to the use of banknotes that do not have their own value, as well as in connection with the development of non-cash payments, money lost such an inherent feature of goods as the presence of value and consumer value.
In modern conditions, banknotes and non-cash money do not have their own value, but the possibility of using them as exchange value remains. This indicates that money is increasingly different from a commodity and has become an independent economic category, while retaining some properties that make it similar to a commodity.
2. Functions of money.
Among modern economists, there are several opinions on the issue of the quantity and interpretation of the functions of money. All economists unanimously recognize three functions of money:
The function of money as a measure and value.
The chosen monetary unit measures the relative value of all goods and services. A single monetary unit greatly facilitates the comparison of the values of various goods and the establishment of equivalent relations between them.
The form of manifestation of the value of a product is its price. However, the value of a commodity turns exchange relations into the possibility of quantitative assessments using money. At the stage of formation of commodity relations, money played the role of a means that equated other goods to money; it made them commensurable not just as products of human labor, but as parts of the same monetary material - gold and silver. As a result, goods began to be correlated with each other in a constant proportion, i.e. a price scale arose as a certain weight of gold or silver, accepted by the state as a monetary unit. For example, in the USA, the Gold Standard Act for the dollar in 1900 1.50463 g of pure gold was accepted, but with further devaluations of the dollar, the gold content in it decreased three times: in 1934. – up to 0.889 g, in December 1971. - up to 0.818 g and in February 1973. – up to 0.737 g.
The Jamaican currency system, introduced in 1976 - 1978, abolished the official price of gold, as well as gold parities, and therefore the official price scale lost its significance. Currently, it is replaced by the actual scale of prices, which develops spontaneously in the process of market exchange.
Money as a measure of value does not fulfill its function in a period of rapid inflation. After all, the measurement of the value of a good is carried out through the “price”, that is, through the number of banknotes expressing the economic value of a given good. And since prices in a market economy are in constant motion, to measure the value of a good it is necessary to distinguish between “nominal” and “real” prices.
The nominal price is the amount of money required to pay for a given good at the current market price. The real price is the amount of money that was required to pay for the same good at base period prices.
Thus, during a period of rapid inflation, the nominal price rises, and money depreciates and ceases to serve as a measure of value. In conditions of hyperinflation, such as was the case in Israel in the 70s or in Bolivia in the 80s, a stable foreign currency, such as the US dollar, begins to play the role of a measure of value, in relation to which the exchange rate of the national currency is determined. While the domestic currency depreciates, the value of goods expressed in foreign currency remains constant. Enterprises and traders usually focus on it. There is an inverse relationship between money and commodity prices. That is, when the purchasing power of money falls, prices rise, and vice versa, when the purchasing power of money rises, prices fall.
2) The function of money as a medium of circulation.
The most familiar and understandable function of money for us is its use to pay for purchased goods and services. In other words, money is a means of circulation, that is, a special kind of commodity with universal purchasing power.
In the process of circulation of goods, money must be present, because when purchasing and selling goods or services, their price must be converted into money. In this process, money serves as a medium of exchange.
The peculiarity of the function of money as a medium of exchange is that this function is performed, firstly, by real or cash money, and secondly, by signs of value - paper and credit money. As a means of paying for purchased goods, money is used for a short time. The same banknotes can be used repeatedly in different transactions, moving from one transaction participant to another. Here the speed of circulation of money becomes of great importance: the faster the turnover occurs, the less money is needed to circulate goods. Accordingly, the speed of circulation of money is important for regulating the mass of money needed for circulation.
The participation of money as a medium of exchange contains the possibility of influencing economic relations between sellers and buyers. Thus, the buyer of a product must first make sure that the use value of the product being offered meets the requirements. Without compliance with this requirement, implementation will not be carried out. The buyer also controls the price of the goods offered. This takes into account the price level, the ratio of supply and demand for the product planned for sale, as well as the price level for goods that can replace the product being offered. The amount of payment for the purchased goods can be regulated by the parties involved in the sale (seller and buyer) and deviate from the originally requested price. For its part, the seller must ensure that the buyer has funds.
All this means that, in its function as a medium of exchange, money can be used as a tool for mutual control of the participants in a transaction for the sale of goods.
The function of money as a means of accumulation (savings).
If a commodity producer, having sold his goods, does not buy other goods for a sufficiently long time, then the money withdrawn from circulation begins to serve as a means of accumulation. Cash savings include cash balances held by individual citizens, as well as cash balances in bank accounts. The formation of cash savings of individual citizens is due to: the excess of their income over expenses, the need to create a reserve for upcoming large and seasonal expenses.
The presence of cash savings allows the population to use them in the coming periods to pay for purchased goods and repay various obligations. Money, as a store of value, also consists of balances accumulated by enterprises and organizations in their bank accounts.
The fulfillment by money of the function of a means of accumulation is an important prerequisite for the development of credit relations, with the help of which it becomes possible to use temporarily free funds generated in various parts of the economy and among the population to lend them to enterprises and organizations of other parts of the economy and to individual citizens.
Owning money, with rare exceptions, does not generate monetary income, which is derived from storing wealth, for example, in the form of real estate (property) or securities (stocks, bonds, etc.). With money as a store of value, you can perform the following operations:
Purchase of precious metals or stones (jewelry);
Purchasing property and things that are in small but constant demand;
Purchase of debt obligations;
Purchase of securities that are in constant demand;
Purchase of foreign currency;
Storing local currency at home in the form of cash savings;
Storing local currency in a bank in the form of non-cash funds.
Money, as a means of accumulation, spontaneously regulates money circulation. Thus, with a decrease in the production of goods and a reduction in trade turnover, part of the money leaves circulation and turns into treasures. When production expands and trade turnover increases, this money comes into circulation again.
Thus, monetary accumulation is a vital function of money for a market economy, because without it economic growth is impossible. But to implement this function, money must maintain its original level of purchasing power over a long period. Only under this condition will money be able to consistently represent a share of social wealth corresponding to the size of accumulated banknotes. In other words, accumulated money is a temporary withdrawal of means of circulation from the circulation process.
Despite perfect liquidity, money as a store of value still has certain disadvantages:
Cash does not bring income to its owner, unlike bank deposits, stocks, bonds, etc.;
During a period of rapid inflation, money cannot serve as a store of value, since it constantly depreciates. In such situations, people prefer to keep money only for a short period, and long before the onset of inflation, they purchase real estate or other assets with it, which, although not very liquid, do not lose their value as money. In conditions of hyperinflation, national money is exchanged for more stable foreign currency.
A number of economists name two more functions of money:
1) The function of money as a means of payment.
Money performs this function when providing and repaying cash loans, during monetary relationships with financial authorities (tax payments, receiving funds from financial authorities), as well as when repaying wage arrears, etc.
Cash also serves as a means of payment, mainly in relationships involving individuals. Only a small part of payments by legal entities (mostly for not very large amounts) is made in cash. However, the predominant part of money turnover, in which money acts as a means of payment, is accounted for by non-cash payments between legal entities and, to a certain extent, in payments by individuals (transfer of funds from a bank deposit to pay for utilities, etc.).
When making some part of the monetary turnover in the function of a means of payment, in contrast to the turnover in the function of a medium of exchange, it is allowed to use foreign currency in addition to the Russian currency (rubles). This happens, for example, when citizens deposit cash foreign currency into bank deposits and subsequently receive the invested funds from the bank. Relatively often, payments are made in foreign currency when making payments for export and import transactions, in the event of the occurrence and repayment of debt in relations with foreign companies and states.
The predominant mass of payments is made during non-cash payments, in which the movement of cash is replaced by credit transactions carried out in monetary units.
The performance of money as a means of payment both in cash circulation and in non-cash payments cannot be reduced to the movement of funds. An inseparable element of payments is their use to regulate the relationships between participants in such transactions.
2) World money.
World money is a universal equivalent not only in its concept, as money in the internal circulation of individual countries, where it is exchanged only for goods produced in a given country, but also in its real existence, since here it really opposes the entire commodity world. At the same time, world money also performs its own specific functions. Characterizing these functions, K. Marx wrote: “World money functions as a universal means of payment, a universal means of purchasing and absolutely social materialization of wealth in general. The function of a means of payment, a means of payment for international balances, predominates.”1
The implementation of the function of world money involves the establishment of a certain combination of alternative situations in three key areas.
Firstly, there is a dilemma between the material, material universal monetary equivalent, on the one hand, and symbolic, symbolic, decretal (“chartal”) money, on the other.
Secondly, in the process of functioning of world money, there is an interaction between two levels of economic activity - micro and macroeconomic.
Thirdly, one or another relationship is established between the two poles of the dichotomous link “rules - discretion”. This refers to the degree of autonomy of behavior, freedom of action in the field of international payment relations of both private entities and government bodies.
The function of world money is manifested in relationships between countries or between legal entities and individuals located in different countries. In such relationships, money is used to pay for purchased goods, when making credit and some other transactions. When various countries used full-fledged money that had its own value, no serious complications arose with its use in international relations. Here, the money of individual countries could be used for settlements with other countries, based on the actual value of the monetary unit of each country.
When the transition to inferior money was made, the previous practice turned out to be insufficiently acceptable. Under the new conditions, payments between countries began to be made using freely convertible currencies (US dollars, yen, euros, etc.) or in such international units as ECU (European Currency Union).
If a payer located in Russia has a non-convertible currency, he can exchange it for a freely convertible currency at the applicable rate and, subject to permission, make a transfer to other countries. On the contrary, when freely convertible currency arrives from abroad, it is credited to a transit account. From this account, part of the received convertible currency can be sold into local currency at the applicable rate, and if permission is available, part of the currency can be used for settlements with foreign correspondents. This means that the function of world money can be performed by monetary units of freely convertible currencies. Non-convertible monetary units cannot perform this function.
An urgent problem in economics is the analysis of the functions of money. Their modification is indisputable as commodity-money relations develop. Thus, modern forms of money, not having their own value, perform the function of commensurate value, and not a measure of value. Some Western economists have reduced this function to that of an accounting tool. The functions of money as a means of payment and medium of circulation, like other functions, have also undergone changes. In economic literature, especially in the works of foreign authors, it is often recognized that money in circulation performs only one function - a medium of circulation - instead of two functions - a medium of circulation and a means of payment. This position takes into account the similarity of transactions involving the transfer of money to pay for goods and to pay debts. Thus, when characterizing one function - the medium of exchange - it is noted that it consists of “... money used to pay for goods and services. And also to pay debts.”
Proponents of this position ignore the fact that, despite the similarities in the operations of paying for goods and paying debts, there are significant differences between them. On the contrary, when selling goods on the terms of immediate payment, credit relations do not arise between the participants in such transactions. And when paying debts, credit relations exist between participants in transactions. It is these circumstances, taking into account the different nature of the relations between participants in monetary circulation, that determine the validity of distinguishing two functions in monetary circulation - a medium of circulation and a means of payment.
The monetary function of savings and savings is wrongfully ignored. The function of world money is absent or is considered as a synthesis of the other four functions, although when this function is performed instead of gold by the leading national freely convertible currencies, it is advisable to isolate it as an independent object of analysis. This is due to the fact that the concept of world currency acquires special significance in the context of economic globalization and competition between leading currencies - the dollar, euro, yen.
3. The role of money in a market economy.
Money plays a key role in a market economy. This is manifested in the following.
Firstly, the social role of money, its function in the economic system is that money acts as a social link between commodity producers.
Being concretized in a specific object that has value, they act as a general condition of social production, an “instrument” of social economic relations of independent commodity producers, an instrument for spontaneous accounting of social labor in the commodity economy.
Secondly, money acquires a qualitatively new role - it becomes capital, or self-increasing value. Money turns into money capital in the reproduction of individual capital due to the fact that its functioning is included in the circuit of industrial capital, and it represents the starting point and result of the latter’s circuit.
Money also serves the production and sale of social capital, acting in the form of cash flows that move both within the first division (production of means of production) and within the second (production of consumer goods), as well as between them.
The role of money as capital is manifested through its functions. Thus, the cost of goods produced in enterprises is expressed in money; At the same time, money serves as a measure of value and monetary capital.
If the products of an enterprise are sold for cash, and the proceeds are used to buy means of production, then money serves both as a means of circulation and as capital. But if products are sold on credit and, upon expiration of the loan period, debt obligations are repaid with money, then here they serve both as a means of payment and as capital.
And finally, if an enterprise opens a subsidiary abroad, then money in this case acts both as world money and as capital.
Thirdly, with the help of money, the formation and redistribution of national income occurs through the state budget, taxes, loans and inflation.
Fourthly, money is the object of monetary regulation of the economies of industrialized countries, based on the monetarist theory of money. In these countries, taking into account general economic objectives, a monetary benchmark for changes in the money supply is established for a year (in Russia for a month) and, in accordance with it, it is regulated with the help of credit instruments of the central bank.
Monetary regulation, as a rule, is aimed at restraining the growth of the money supply, overcoming inflationary processes and stimulating GNP growth.
Conclusion.
Money is a special commodity that serves as a universal equivalent. They greatly simplify the circulation of goods and services between producers and buyers. That is, money is a historical category inherent in commodity production.
How important is money to economic prosperity and well-being? How and in what ways can they affect output, employment and prices? The economic importance of money cannot be overestimated. Without understanding the essence of money and its functions, it is impossible to understand the operation of the mechanisms of a market economy, and most importantly, the impact on them. If we want to understand what “the economy” is and how the processes occurring in it affect the life of our society, we need to study money, its essence and functions.
The essence and role of money is most accurately revealed through the functions it performs. Money functions as a medium of exchange. They allow you to pay resource owners and producers with a product (money) that can subsequently be used to purchase any other product or service available on the market. As a means of exchange, they avoid the inconvenience of barter exchange.
Money functions as a measure of value. That is, they make it possible to quantitatively measure the value of a product. The cost measure function is implemented based on the price scale. With its help, the price of a product, as an indicator of the value of value, is converted into a list price or market price, expressed in national monetary units. This function can be disrupted by rapid inflation. We constantly encounter this phenomenon in modern Russia. Since 1992, in our country one can observe the process of “dollarization” of the economy, that is, often the prices of certain goods and services are calculated in American dollars, since prices in them remain stable, while in rubles during periods of rapid inflation, prices change greatly.
The next function of money is that of a store of value. That is, money temporarily withdrawn from circulation for the purpose of accumulation serves as a means of creating wealth. The market system makes it possible to transform wealth into profit-generating capital. Mainly this transformation is carried out through the credit system and means channeling money into investment in the economy. Money that does not go into investment, but is simply accumulated, is actually lost for social production. This function of money, as well as the function of a measure of value, is violated in conditions of rapid inflation, since accumulated money loses its nominal value under the influence of inflation. A clear example is our country, whose population and production have more than once lost their savings since the beginning of the reforms, which means that the national currency actually ceased to serve as a means of accumulation.
Money also serves as a means of payment. Items cannot always be sold for cash. Therefore, there is a need to sell goods on credit,
Money is one of the most significant components in the economic life of society, since it is an absolutely liquid means of exchange, i.e. a product that has the greatest marketability. The origin, essence and functions of money. Law of money circulation.
Money is its basic concept, essence and functions. Monetary System of the Russian Federation. Analysis of the efficiency of using fixed assets of the consumer society. Description and characteristics of the monetary system of the Russian Federation and their analysis using economic indicators.
The essence of the economic category of money as a universal commodity, which is a universal equivalent, its main functions, forms and types. The relationship between the history of banknotes in any form and the history of inflation. Characteristic features and cash flow movement.
The history of the origin of money among primitive people, natural exchange and price setting. The existence of various "exotic" money. Metal money and its disadvantages. The main role of money as a commodity, types of currency, the essence of modern money.
The history of origin, essence, characteristics and properties of money as a means of circulation, measurement of value and accumulation of purchasing power. Presentation of the classification of full-fledged and inferior money, determination of their role in a market economy.
Origin, essence and types of money. The function of money as a measure of value. Money as a medium of exchange. Contents, purpose and features of the functioning of money as a means of payment. Money in the sphere of international economic turnover.
Monetary system, the form of organization of money circulation in the country. Inflation, a decrease in the purchasing power of money. Disequilibrium in the money market. Demand for money as a means of preserving wealth. Nominal and real interest rates.
Money, by its origin, is a commodity. Having stood out from the general commodity mass, they retain their commodity nature and have the same two properties as any other product. The emergence and evolution of monetary forms and commodity-money-commodity relationships.
The essence and purpose of money, its main functions and the history of the emergence of monetary relations in society. Types of forms of value and their distinctive features, advantages and disadvantages. Functions of money as a general equivalent. Stages of formation of monetary systems.
The economic role of money as a special commodity that serves as a universal equivalent in the exchange of goods. Functions, origin and types of money. Metallic, nominalistic and quantity theories of money. Monetary system, modern monetarism.
Letter of credit, acceptance, billon coin, bimetallism, paper money, treasury notes, exchange rate, bill of exchange, money turnover, money, endorsement, collection order, classic banknotes, coin, monometallism, payment order and demand.
Monetary circulation: the basic category of monetary unit, mass and system. Money-credit policy. The role of money circulation, excessive saturation of economic turnover with money. Monetary aggregates and bases of the Central Bank of the Russian Federation. Banknotes, their types.
Definition of the main functions of money: a means of circulation and accumulation, a measure of value. Familiarization with the history of the origin and development of money: the introduction of a metal standard, the minting of gold and silver coins, the appearance of banknotes, treasury notes.
The concept, functions of money and the history of its appearance. The emergence and development of the quantity theory of money. The quantity theory of money as interpreted by Friedman. The essence of the quantity theory of money. Two varieties of the quantity theory of money, modern monetarism.
Credit as a pillar of the modern economy, an integral element of economic development, classification of loan forms. Characteristics of functions and types of money, the essence of money as an economic category, the internal basis of its content. World monetary system.
Consideration of the history of origin, prerequisites for appearance, functions (measure of value, means of circulation, accumulation, payment), role (impact on improving economic activity, monitoring the price and quality of products) of money in the economy.
Money as a universal equivalent of measure, its evolution and main functions. Introduction of paper money into circulation and its economic nature. Credit money: bill, banknote, bank deposits, check. Function of world money. The role of money in a market economy.
Origin and essence of money. Concepts of the origin of money: rationalistic and evolutionary. Functions of money. Features of the Russian money market. Money as a type of financial asset. Monetary regulation of the economy.
Economic nature and main stages of development of money. Money as a medium of exchange. The function of money as a measure of value, a means of circulation, accumulation and savings. Money turnover. its role in the successful functioning of the economy. Monetary system of Russia.
The concept and origin of money: history of monetary relations, research by theorists. Properties and functions of money: value; medium of exchange; instrument of payment; means of creating treasures; world money. Types of money. Laws of monetary circulation.
The necessity and prerequisites for the emergence and use of money.
The essence of money.
1. The necessity and prerequisites for the emergence and use of money.
Money is a special type of universal commodity, used as a universal equivalent, with the help of which the value of all other goods is expressed. Money is a unique commodity that serves as a means of exchange, payment, measurement of value, and accumulation of wealth.
In a modern economy, the circulation of money is a prerequisite for the circulation of almost all types of goods. Money is a single measure of value necessary when comparing and exchanging goods. Money is those goods that serve as a means of measuring the value of all other goods.
Money has universal liquidity; This is the economic category in which relationships between people are manifested and with the help of which they are built.
The purpose of money is to save the costs of market interactions: to save the costs of choosing the assortment and quantity, purchased goods, time and place of transactions. In a barter economy, these costs would be so great that they would block the implementation of virtually any asset of exchange, the division of labor would be minimal, and many activities would simply not arise.
2. The essence of money.
Money is one of the greatest inventions of mankind, it is the only commodity that cannot be used otherwise than to free itself from it. Money will not feed or clothe a person until he spends it. A well-functioning monetary system infuses vitality into the cycle of income and expenditure that embodies the entire economy.
A properly functioning monetary system promotes full utilization of capacity, full employment, and, conversely, can cause sharp fluctuations in price levels, employment, a decrease in household incomes, etc.
The essence of money is expressed in its functions. It lies in the fact that they serve as a necessary active element and integral part of the economic activity of society, the relations between various participants and links in the reproduction process.
The essence of money is characterized by its participation:
in the implementation of various types of social relations;
in the distribution of GDP, in the acquisition of real estate and land;
in determining prices expressing the value of goods.
The production of goods is carried out by people using tools and using objects of labor. Manufactured goods have value, which consists of the total value of tools, objects of labor and value newly created by living labor.
The value of a particular product is expressed by a price that depends on the individual costs of an individual commodity producer. Therefore, when selling a product, its owner can claim a price determined by the socially necessary level of costs for the production of a certain product.
Money is a universal commodity equivalent, so its significance comes down to the fact that it serves as a means of universal exchangeability for various goods. This feature of money becomes noticeable when compared with barter. The possibilities of exchange during barter are limited by the framework of mutual need and compliance with the equivalence of such transactions.
Only money has the property of universal exchangeability for goods and other values. Money improves the conditions for storing value.
In connection with the transition from the use of full-fledged money to money that does not have its own value; and also in connection with the use of non-cash payments, money has lost such a feature as the presence of value and consumer power.
Now cash and non-cash money do not have their own value. The differences between credit money and paper banknotes lie in the features of their release into circulation.