Subject: money, credit, banks, lectures. Money, credit, banks: Basic lecture notes (Nikitin V.M., Yudina I.N.). Non-cash money turnover, its meaning

Lectures on the course “Money, credit, banks”

Topic 1. Origin and essence of money

1. The need and prerequisites for the emergence and use of money.

2. The essence and properties of money.

1. The need and prerequisites for the emergence and use of money.

The development of commodity exchange occurred through a change in the following forms of value:

1/ a simple or random form of value corresponded to the early stage of exchange, when it was of a random nature: one commodity expressed its value in the commodity opposed to it;

2/ the full or expanded form of value was a product of the development of exchange, the development of the social division of labor. The exchange included numerous items of social labor;

3/ the general form of value was characterized by the separation from the commodity world of a separate commodity, which played the role of a universal equivalent on the local market. IN different countries oh it was furs, cattle, salt.

4/ the monetary form of value is characterized by the release of precious metals as a general equivalent as a result of further exchange. The entire commodity world was divided into goods and money.

The transition from one form of value to another was associated with the development of commodity production and was accompanied by a reduction in distribution costs, which, in turn, stimulated the development of specialization and trade.

The main reason for the emergence of money is the social division of labor. If there is no division of labor, there is no point in exchanging among producers.

There are also private reasons explaining the need for money:

a/ The direct labor of each producer is his private labor. Social recognition of work is possible only through exchange, because the social character of labor is hidden.

b/ The heterogeneity of labor determines the distribution of material benefits depending on the individual’s labor costs.

c/ The level of development of productive forces - predetermines the distribution of material goods according to energy costs.

d/ Availability different forms ownership of the means of production and products of labor

e/ Presence of an international division of labor.

2. The essence and properties of money

Essence is the internal content of an object, expressed in the unity of all its various properties and relationships. It, as the internal content of an object, has an external manifestation. The essence of money is revealed through the forms of its manifestation:

a/ Money is the universal equivalent of goods and services.

b/ Money, like any other economic category, expresses certain production relations, which can be credit, financial, settlement.

c/ One of the features of the essence of money is its universal direct exchangeability for all other goods, i.e. All goods find their final consumer by participating in circulation.

d/ Gold content of money. Currently, the money in circulation is not exchangeable for gold. In this case, one should distinguish between the gold content and the gold backing of money. Gold content - or price scale - the weight content of gold in a monetary unit, presented ideally. Gold backing - requires real gold reserves. The gold content of national currencies changed several times, and then was abolished. Gold backing is available in all countries of the world, which is necessary to maintain currency stability in the country.

d/ Credit nature of money: money is issued through the process of credit emission and is an obligation of the Central Bank.

2. Functions of money

Main questions of the topic

1. The essence and functions of money, the evolution of their forms.

2. Types of money.

1. In economic literature, money is defined: as an economic category, i.e. as specific relationships between people; as a universal equivalent in the exchange of values; how clean technical means, i.e. artificial instrument of commodity circulation, etc. All definitions reveal the essence of money through its functions, its usefulness for the economy. Wherein appearance money, their form does not play a determining role.

Functions of money in modern economic literature are interpreted narrowly and in a broad sense words. In a narrow sense, money is:

1. measure of value, i.e. their function is the ability to be compared with any values (resources, goods, services);

2. medium of exchange, i.e. with their help, ensuring the exchange of goods according to the T–M–T scheme, which means an influx of cash income to the sellers of the goods and its further use for the purchase of other goods;

3. means of accumulation and savings - turning them into reserves or capital.

A broad interpretation of the functions of money presupposes, in addition to the above, an understanding of money:

1. as a means of payment, which indicates the possibility of their independent movement (without the oncoming movement of any goods). The essence of this function is deferred payment. The existence of tax, budget and credit systems is based on it;

2. as world money - a currency used in domestic and international payments. Previously, this role was assigned to gold as the universal equivalent; currently – for the most recognized currencies (or currency baskets) of developed countries or their
communities (dollar, euro, etc.).

To analyze the essence of money, it is also of particular importance to distinguish two main forms of money: full-fledged and incomplete (symbolic) money. Full-fledged money is money whose commodity value corresponds to its face value, i.e. the value indicated on them. The most common example of full-fledged money is gold coins, credit money that is 100% gold backed. Inferior (symbolic) money is money, the value of the commodity body of which is lower than its face value (paper money, credit money, irredeemable for gold).

Topic 3. Evolution of forms and types of money

1. Commodity money

2. Metal money

3. Paper money

1. In the process of development of market relations, types of money successively replaced each other. Each subsequent type or form of money marked progress, i.e. their acquisition of new, more advanced properties.

The original form is commodity money, i.e. isolating the most popular goods from the commodity world and using them not for consumption, but for exchange for other goods. Such a product became a recognized equivalent in certain local markets. In Rus', this role was played by the skins of fur-bearing animals, including martens. Therefore, money in those distant times was called kunas.

Initially, goods that had stable everyday demand and were widely circulated precisely because of their recognized usefulness (livestock, furs, tobacco, fish) found themselves in the position of money. Consequently, the first type of money was commodity money.

Then it inevitably became clear that although money can be a variety of goods, the material for money must meet the following requirements: 1/ wear resistance, 2/ portability, 3/ stability, 4/ homogeneity, 5/ divisibility, 6/ recognition, etc.

Due to the fact that precious metals met these requirements, they “took over” the fulfillment of this mission. 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.

The characteristic features of modern money in industrialized countries are:

Abolition of official gold content, security and exchange of banknotes for gold;

Transition to credit money that is not redeemable for gold;

The release of money into circulation not only through bank lending to the economy, but also to a large extent to cover state expenses;

Strengthening government regulation of money circulation.

The predominance of non-cash circulation in money circulation;

Topic 4. Monetary system and its types

Monetary system This is a form of organization of monetary circulation in the country that has developed historically and is enshrined in national legislation.

The type of monetary system depends on the form in which money functions - as a commodity or as a sign of value. In this regard, the following types of monetary systems are distinguished:

· metal monetary systems, in which the monetary commodity directly circulates and performs all the functions of money, and credit money is exchanged for metal;

· non-metallic monetary systems built on the circulation of credit and paper money, irredeemable for metal. (These are all modern monetary systems).

The transition from one monetary system to another is due to the fact that in the process of development of commodity-money exchange there was a transition from the use of some species money to others, as well as with changes in the conditions of their functioning and an increase in their role.

Metal monetary systems. 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.

Varieties of gold monometallism: gold coin standard, gold bullion standard and gold exchange standard (gold exchange standard).

Historically the first was gold coin standard .

At gold bullion standard There were no gold coins in circulation and no free minting of them. The exchange of banknotes was carried out upon presentation of a certain amount of them only for gold bars. The purpose of the introduction is to limit the exchange of banknotes for gold.

Gold exchange standard characterized by the fact that banknotes are exchanged for mottos, i.e. for foreign currency exchangeable for gold. Created in 1944, the Bretton Woods currency system is a system of interstate gold exchange standard.

Since the 30s. Monetary systems built on the circulation of credit money that cannot be exchanged for gold begin to function in the world, and the gold standard is dismantled.

Non-metallic monetary systems. The characteristic features of modern monetary systems based on the circulation of credit money are:

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MONEY, CREDIT, BANKS

Under the general editorship of prof. G.I. Kravtsova

Reviewers:

A wide range of issues related to the theory of money, credit, and banks are covered. The essence, role, types of money, organization of money circulation, concept and types of monetary systems are considered. The characteristics of credit, its forms, the essence of banks, non-bank financial institutions, their operations, and services are given. Currency, credit, and settlement relations in the field of international economic relations are covered.

For students and teachers of higher economic specialties educational institutions, employees of banks, financial institutions, and other economic personnel.

Preface

1. Types and role of money

1.1 Reasons for the appearance of money

1.3 Types of money and their features

1.4 The role of money in a market economy

2. Issue and release of money into economic circulation

2.1 The concept of emission and issue of money

2.2 Money supply and monetary base

2.3 Issue of non-cash money, bank multiplier

2.4 Cash emission

3. Cash flow

3.1 The concept of money turnover

3.2 Classification and principles of organizing cash flow

4. Payment system

4.1 The concept of “payment system”. Elements and types of payment systems

4.2 Non-cash money turnover, its meaning.

4.3 Forms of non-cash payments of legal entities in domestic economic turnover

4.4 Features of non-cash payments by the population

4.5 International payments, their forms

5. Cash turnover

5.1 Economic content of cash turnover

5.2 Organization of cash transactions in the national economy

6. Monetary system

6.1 Concept, types and elements of monetary systems

6.2 Monetary system of the Republic of Belarus

7. Methods of regulating and stabilizing money turnover.

7.1 Stability of money turnover, its role in ensuring macroeconomic balance.

7.2 The need to regulate money circulation

7.3 Methods of regulating money turnover

8. Monetary system and foreign exchange regulation

8.1 Monetary system, its elements

8.2 Types and evolution of monetary systems

8.3 Convertibility of national currencies

8.4 Exchange rate

8.5 Balance of payments, its contents

8.6 Currency regulation, its directions and principles

8.7 Methods of currency regulation, their features in the Republic of Belarus

9. The essence and role of credit

9.1 Reasons for the emergence and conditions for the functioning of credit relations

9.2 Nature of the loan

9.3 Credit functions, their characteristics

9.4 The role of credit

10. Forms of loan

10.1 Concept of loan forms and their classification

10.2 Bank loan

10.3 State credit

10.4 Commercial loan

10.5 Consumer loan

10.6 Lease loan

10.7 Mortgage loan

10.8 Factoring loan

10.9 International credit

11. Banks and their role

11.1 Nature and role of banks

11.2 Types of banks and their classification

11.3 Banking activities, principles of its organization

11.4 Banking associations, their forms

12. Banking transactions

12.1 Banking services and transactions

12.2 Classification of banking operations

12.3 Characteristics of individual bank operations

12.4 Prospects for the development of banking services

13. Banking system

13.1 Banking systems and their types

13.2 Central Bank, its status and functions

13.3 National Bank of the Republic of Belarus

13.4 Monetary policy of the central bank, its instruments

13.5 Commercial bank, features of its organization and activities

13.6 Concept of bank liquidity

13.7 Regulation of banks

13.8 Prospects for the development of the banking system of the Republic of Belarus

14. Bank interest

14.1 The essence of bank interest, its functions

14.2 Deposit interest

14.3 Interest on bank loans

14.4 Central bank refinancing rate

14.5 Accounting interest

15. Non-banking financial institutions

15.1 Types and role of non-bank financial institutions

15.2 Leasing companies

15.3 Investment companies (funds)

15.4 Financial companies

15.5 Pawnshops

15.6 Credit unions and cooperation

15.7 Specific financial institutions

Literature

Preface

Money and credit are not new economic categories. They existed and exist in various socio-economic formations on the basis of commodity production and commodity circulation.

The everyday idea of money and credit often does not coincide with their actual essence and role, which necessitates the need to disclose their role and place in the economy. Money and credit are not elements of private transactions, isolated from each other, but social phenomena, elements of production relations, closely related to other economic concepts and instruments.

Money and credit, as a product of economic relations, develop on a scale determined by economic processes. Changes in monetary turnover are due to the reproduction process. Consequently, money and credit in their essence are not immutable, frozen once and for all in their development. Currently, they are acquiring special importance as an element of market relations.

With the development of market relations and the improvement of management methods, the need arises for an in-depth study of the economic content of money and credit in the interests of increasing the efficiency of social production. High demands on economic management methods necessitate the study of the monetary mechanism as one of the constituent elements of the entire economic mechanism. In conditions of competition between participants in the reproductive process, success comes to those who have better command of modern methods use of money, credit, banking technology.

Subject academic discipline“Money, credit, banks” is the study of the sphere of economic relations related to the functioning of money, credit, banks, and the patterns of their development; the basics of the construction and structure of the credit system, the principles of organizing banking activities; the development of new phenomena in the country's monetary system. This discipline forms the basic theoretical knowledge necessary for training specialists in economic specialties.

The presentation of the material involves the study and generalization of facts by expressing them in concepts such as money, credit, payment turnover, cash flow, banks, etc. The presentation is carried out in order of transition from the abstract ( general principles, patterns of functioning of monetary relations) to the specific (monetary, currency, credit system, banking operations, forms of payment).

Not only the current principles, the forms of functioning of the mechanisms of the monetary sphere in their statics, but also in their development for the future are considered. This means that the subject of the course dictates the need to present the main development trends and improve the monetary and settlement mechanism in its connection with the economic mechanism.

The disclosure of theoretical provisions is based on the priority of a logical presentation of the system of economic relations in the field of money, credit and laws over their historical description. At the same time, historical excursions into the field of evolution of money, credit, and banks are used to identify the continuity of economic relations and introduce readers to the material that served as the basis for theoretical generalizations. At the same time, the authors sought to avoid overloading the content with secondary concepts and facts.

The course “Money, credit, banks” contains practical questions only to the extent necessary to understand the economic role of money, credit, and banks. Consequently, the course does not provide a systematic presentation of the current practices of lending and the organization of money circulation; these issues must be resolved in applied special disciplines. The course forms the basic theoretical knowledge necessary for studying such special disciplines as: “Organization of the activities of commercial banks”, “Banking audit”, “ The financial analysis activities of banks”, “Organization of the activities of the central bank”, etc.

The first sections of the textbook provide a description of the types of money and their essence and role, money circulation, discusses the organization of money circulation, methods of regulating money circulation, elements of the monetary and currency systems.

Next, the essence, functions and role of credit, features of the organization of the functioning of its individual forms (banking, commercial, factoring, state, consumer, leasing, mortgage, international credit) are revealed. Characteristics of the credit and banking systems, functions and roles of banks and specialized financial institutions are given, various types banking services and transactions.

While studying the discipline “Money, Credit, Banks”, students are required to:

- get acquainted with views on the essence, functions, role of money and credit in the development of the national and world economy;

- to master the content, organization of money circulation and the credit process in a market economy, conditions of stability and methods of regulating the monetary sphere;

- know the basics of the functioning of monetary relations in international economic turnover;

study the structure of the state’s credit system, types, functions and operations of banks and specialized financial institutions, their role in the country’s economy;

- be able to use theoretical knowledge of the course to acquire relevant practical skills in their specialty. The future work of students as employees of banks and enterprises is associated with the use of knowledge on the theory of money, credit, banks and non-banking financial institutions.

The structure and content of the textbook allows you to solve these problems.

The textbook was written by a team of teachers from the Department of Money Circulation, Credit and Stock Market under the guidance of Professor G.I. Kravtsova in accordance with the standard program of the course “Money, Credit, Banks” (2006).

The textbook takes into account legislative and regulatory documents in force as of January 1, 2007.

The authors of individual chapters are:

G.I. Kravtsova - preface, ch. 1 (§ 1.3); Ch. 3,5,6,8 (§8.1.-8.5.), ch. 10 (§10.1., 10.2; 10.4.-10.8.), 11,12,14,15, literature

G.S. Kuzmenko - Ch. 1 (§ 1.1.; 1,2.,1.4), ch. 2, 4,9,10 (§10.9.), ch. 13 (§13.1)

O.V. Kupchinova - Ch. 13 (§ 13.5-13.7)

O.I. Rumyantsev - Ch. 7, ch. 8 (§8.6.-8.7), ch. 13 (§13.2.-13.4.)

I.N. Tishchenko - Ch. 10 (§10.3.), ch. 13 (§13.8.)

1. Types and role of money

1.1 Reasons for the appearance 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, a generally accepted theory of money has not yet been developed. There are significant disagreements among economists on 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, and its role in social reproduction.

The most common are two 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 historically arose first and explains the origin of money by subjective psychological reasons. It is argued 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 that facilitates exchange transactions and reduces their costs. The introduction of money into exchange occurred either through the conclusion of an agreement between people, or in the form of the adoption by the state of a corresponding law.

The rationalist concept was first formulated ancient Greek philosopher and the scientist Aristotle, who believed that money became a universal medium of exchange not by its intrinsic nature, but by convention, so that people could replace it and render it useless. This concept dominated economic science until the 19th century, until archaeological research showed that money did not arise overnight, but went through a long evolution. Nevertheless, many economists adhere to rationalistic views. For example, P. Samuelson believes that money is an artificial social convention, M. Friedman is an experimental theoretical construct.

In the early stages of the development of monetary theory, the prevailing point of view was that money is a creation of state power - after all, it is the state that creates money in the process of issuing it and legislatively endows it with purchasing power. Currently, proponents of the rationalistic concept most often consider law only as one of the reasons for the emergence of money. For example, the origin of money is explained as follows: difficulties in exchange in a barter economy led to an agreement between people to use money as a unit of account, standard means appeals, and then this agreement was enshrined in state law.

Explaining the emergence of money by the shortcomings of direct commodity exchange, Western economists identify two main problems of barter transactions:

searching for a double match, that is, two commodity producers mutually interested in purchasing each other’s products. To exchange his goods for another goods he needs, the commodity producer may be forced to make many exchanges until a double coincidence of interests occurs;

determination of prices for 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 range of products increases, the number of prices increases rapidly, which makes exchange very difficult.

Thus, according to the rationalist concept, money was invented by people to use it as a technical instrument of exchange in order to reduce costs and increase the efficiency of commodity circulation. In this regard, money is just a product of people’s consciousness, the result of their subjective decision, that is, a psychological act.

The evolutionary concept was first developed by K. Marx, who substantiated the commodity origin of money. According to this interpretation, money did not appear overnight, by force of law or agreement, but as a result of the long evolution of exchange relations. They are an objective result of the development of the process of commodity exchange, which in itself, regardless of the desires of people, gradually led to the spontaneous separation of a specific product from the general mass of goods, which began to perform monetary functions.

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 a commodity, on the other hand, it is part of general social labor. This labor is abstract labor and regardless of the qualitative characteristics specific labor can be reduced to simple labor costs, i.e. labor costs in a physiological sense. The homogeneity of abstract labor makes commodities commensurable. Thus, abstract labor creates value and is a form of manifestation of social labor that creates the value of a commodity. 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 most early stage 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 excess. This form of value is expressed by the equality:

x product A = y product 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 concrete, private labor, as a use value, and commodity B as an expression of value , the embodiment of abstract labor.

The full (expanded) form of value corresponds to the stage of development of exchange, when it has already become quite regular, but the process of formation of permanent regional markets has not yet been completed. With this form of value, each commodity expresses its value through a plurality of commodities:

y product B

z product C

x product A = q product D

Unlike the simple form of value, where the proportions of exchange may be random, in this form the proportions of exchange depend on the value of the goods. Its disadvantage is the incompleteness of the relative expression of the value of the goods playing an active role (good A), since its value can be expressed by more and more new goods in an equivalent form.

The general form of value arose at a stage in the 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:

y product B

z of product C = x of product A

q of product D

Here there was not only a quantitative, but also a qualitative development of value relations: if, with the full form of value, the exchanged product corresponded to many commodity equivalents, then with the general form of value, there was only one equivalent product on the market, which was in general demand. All other goods expressed their value in this equivalent product, which acted as an intermediary in the exchange. As a universal equivalent, different peoples used different goods at different periods of time - depending on natural conditions, national traditions, the nature of production activity, 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:

x product A

y product B

z commodity C = n grams of gold

q of product D

The transition from the general form of value to the monetary one did not reflect any significant qualitative changes. Gold has become a universal equivalent only because it itself has a commodity nature and has value. The emergence of the monetary form of value only meant that, due to social habit, the form of the universal equivalent had merged with the natural form of noble metals, in particular gold. This happened due to the convenience of using these metals as intermediaries in exchange due to their inherent natural properties, such as qualitative homogeneity, storability, quantitative divisibility, etc.

With the establishment of the monetary form, the value of a commodity received the form of its price, and the exchange process began to be expressed by the formula C-M-T.

According to the evolutionary concept, the prerequisites for the emergence of money are the social division of labor and the economic isolation of commodity producers. The spontaneous emergence of money is the result of the development of forms of value and is associated with the expansion of exchange. 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, and the purchasing power of coins made from these metals was determined by their internal value, and not by the will of the state.

1.2 The essence of money, its functions

The essence of money. Acting as a necessary element of commodity production, an active component of all economic processes in national and world economies, money is a very complex, multifaceted and constantly developing socio-economic phenomenon. In this regard, the interpretation of their essence within different economic schools varies significantly, and, accordingly, there is no generally accepted definition of money.

Based on an analysis of the historical evolution of forms of money, we can give the following definition: money is the most liquid generally recognized financial asset, which is a specific form of social wealth that can be exchanged for any goods and services. However this definition does not reveal all facets of the essence of money as the most important macroeconomic category with the necessary completeness.

In modern economic literature, two most common approaches to the characteristics of money can be distinguished.

One approach is based on the thesis that the functions of money determine its essence. Typically, money is characterized as a means of payment for goods and services (medium of exchange), a unit of account (measure of value) and a means of storing (accumulating) value, and the primary and main function is a medium of exchange. In accordance with this approach, any financial asset is recognized as money. A financial asset is a set of property rights owned by an individual or legal entity in the form of cash, financial investments, as well as monetary claims to other individuals and legal entities or even an item that can be used as money, that is, will be accepted by any economic entities in exchange for goods and services. From these positions, money is most often viewed as a technical instrument of exchange.

Within another approach, money is treated as a special kind of commodity, serving as a form of value for all goods and services. They represent the general equivalent of goods, that is, a separate form of exchange value, and are used to determine exchange proportions in exchange. Functions do not define the essence of money, but are a form of its manifestation and follow from the essence. From the standpoint of this approach, money is considered as a historical category of commodity production, a historically determined form of economic relations between people. 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.

The interpretation of money as a universal value equivalent of goods implies that they themselves must have value. Economists who adhere to this approach agree that in metallic monetary systems, full-fledged money (gold, silver) acted as a monetary commodity - the universal equivalent, and the circulating credit and paper money, banknotes redeemable for gold, treasury notes, etc. were representatives full-fledged money in the sphere of circulation and performed only two monetary functions - a means of circulation and a means of payment. However, the process of demonetization of gold is the process of gold leaving circulation and losing its monetary functions. led to the emergence of a wide range of often opposing views on the nature of money in a modern market economy. In particular, this concerns the characteristics of fiat credit money as a universal equivalent and its function as a measure of value. At the same time, none of the concepts presented in the economic literature provides a holistic and consistent explanation of their essence.

The existing points of view in this area can be divided into two main positions, the essence of which boils down to the following:

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. Recognition of modern fiat money as a truly functioning universal equivalent requires a fairly convincing justification for how it performs the function of a measure of value. After all, 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 theories to explain the origin of such value. in particular, the theory of the representative value of money is widespread, according to which modern credit money, not having its own internal value, performs all monetary functions, including the function of a measure of value, on the basis of the representative value that it receives in the sphere of circulation from goods. It is formed as the value of the commodity mass that credit money actually represents;

modern credit money does not have value, so it cannot serve as a measure of value and is not a universal equivalent. According to this point of view, value is not an essential property of money. The transition from the circulation of full-fledged 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, based on price proportions that have developed historically under the conditions of the functioning of the gold standard system. Consequently, at the present time, each commodity expresses its value not in monetary terms, which have its own internal value, but through credit money - in all other goods. Thus, supporters of this point of view believe that money, no longer being a universal value equivalent, becomes simply a tool for equating the values of various goods to each other and facilitating the process of exchange.

Despite differences in interpretations of the economic content of money, all economists agree that its essence is revealed in the functions it performs.

The functions of money characterize their individual specific essential properties and express the purpose of money. Due to the lack of a generally accepted interpretation of the essence of money, the subject of debate in economic science is still both the number of functions of money and their content.

Depending on the theoretical views on the nature of money and the goals of analysis, the following are distinguished:

two functions: a medium of exchange (or a medium of exchange and payment) and a unit of account (or a means of measuring value);

three functions - medium of exchange, unit of account and means of accumulation (store of value);

four functions: medium of exchange, unit of account, means of accumulation (store of value) and means of payment;

five functions: measure of value, medium of exchange, means of payment, means of storage and world money.

Let us consider the content of the five functions of money, as it is traditionally interpreted in economic literature.

MONEY AS A MEASURE OF COST. The purpose of money in this function is to measure the costs of all goods and to mediate in determining prices. With the help of money, the values of all goods are expressed as qualitatively identical and comparable values, which makes it possible to establish price proportions between all goods in the process of exchange.

In order to measure the value of goods, money itself must have a value that could serve as the basis and standard for measurement. When exchange proportions are formed in the market, according to which goods are exchanged for each other with the help of money, the value of money finds its expression in other goods. Thus, money has exchange value or purchasing power, which is expressed in the absolute number of goods that can be purchased with one monetary unit.

Full-fledged money had its own internal value, which practically coincided with the exchange value of this money. For modern credit money, the exchange value exceeds the costs of their production and is formed under the influence of market conditions and government regulation of their issue and circulation. In this regard, the mechanism by which they perform the function of a measure of value, as shown earlier, is the subject of debate. A common point of view is that the functions of modern money, which does not have its own internal value to fulfill the role of a universal equivalent, have undergone modification and currently money performs the function not of a measure of value, but of a commensurate value or a unit of account.

With the advent of money, the value of all goods received monetary expression Ї price. Money has no price because it cannot express its value in itself. The real value of money is expressed by its purchasing power. In a market economy, prices of goods are determined by such basic factors as labor costs for their production, the relationship between supply and demand for these goods, and the purchasing power of money.

To determine the price of any product, there is no need to physically have the required amount of money; you just need to mentally equate it to a certain amount of money. After metals were identified as the universal equivalent, the cost of goods was initially equated to the corresponding weight amount of these metals. However, the need to weigh money made exchange transactions difficult. For the convenience of comparing prices of various goods, they should be expressed in the same units, that is, reduced to the same scale. In this regard, at a certain stage in the development of commodity-money relations, the function of the measure of value began to be implemented on the basis of the price scale.

Under the conditions of circulation of metallic money, the price scale was a certain weight amount of metal accepted as the country's monetary unit. For example, at the turn of the XIX-XX centuries. The scale of prices in Russia was the ruble, containing 0.774234 grams of pure gold, and in the USA - the dollar, the gold content of which was equal to 1.50463 grams of pure gold. The scale of prices in the country was fixed by the state by law and changed only with the devaluation of the national currency and the implementation of monetary reforms.

With the emergence of price scale, minted coins began to be used in exchange transactions. The weight of the monetary metal contained in the coins initially coincided with the price scale (face value). However, as a result of their wear and tear, the weight or fineness of the metal is reduced to cover emergency government expenses. The state gave the damaged money its previous denomination and demanded acceptance not by weight, but by face value. the official price scale gradually became isolated from the real weight content of coins, and with the abolition of the gold content of currencies (after the introduction of the Jamaican currency system in 1976), it completely lost its significance. The official price scale was replaced by the actual market scale, which is not fixed and develops spontaneously in the process of market exchange.

Thus, in modern conditions, the price scale does not have an internal cost basis, is conditional in nature and is simply a legally established national monetary unit. For example, in the Republic of Belarus the Belarusian ruble is used as the price scale. The price scale changes not directly, through a legislative increase or decrease in the weight of the monetary metal, but indirectly, as a result of fluctuations in the volume of money supply in circulation.

It should be noted that some economists consider the scale of prices as a technical function of money (as opposed to its economic function as a measure of value), because in order to determine the value of goods, money itself must be measured and expressed on a certain scale. Other economists, by the function of a measure of value, most often mean the use of money only as a scale of prices (units of account). This understanding follows from the interpretation of the essence of money as a technical instrument of exchange.

There are also different views on the significance of the function of the measure of value. Many authors traditionally view it as a constitutive function from which all other functions follow. So, for example, in order for money to perform the function of a medium of exchange, it is necessary to first determine the proportions in accordance with which goods will be exchanged for each other. These proportions can only be established after the value of the goods has been measured. Those economists who understand the scale of prices by the function of a measure of value, consider it as auxiliary in relation to the function of money as a means of circulation, which they consider to be the main one.

MONEY AS A MEDIUM OF CIRCUIT. Performing the function of a means of circulation, money acts as an intermediary in the exchange of goods, demonstrating its property of universal purchasing power.

At a certain stage in the development of commodity relations, the direct exchange of goods for goods was replaced by an exchange process, which is serviced by money. As a result, the disadvantages inherent in natural exchange were overcome - the search for double matches, time and space restrictions, etc. The process of exchange of goods began to consist of two interrelated acts: the sale of a product (exchanging it for money) and the purchase of a new product with the proceeds of money (exchanging the money received for a product). The participation of money in exchange transactions led to the transformation of individual acts of commodity exchange into commodity circulation, which is expressed by the formula T-M-T.

The process of commodity circulation and direct exchange of goods formula T-T differ significantly. If during direct commodity exchange the acts of purchase and sale of goods coincide (the commodity producer sells his goods and simultaneously acquires another), then during commodity circulation these operations are broken in time and space and become independent. The commodity producer has the opportunity to sell goods in one market and buy in another. After selling his goods, he can purchase another product not immediately, but after a period of time, and use the money received from the sale to accumulate wealth.

Since, in its role as a means of circulation, money serves purchase and sale transactions, the movement of goods from one economic entity to another, the movement of money in this function is subordinate to the movement of goods in the sphere of circulation. Due to this characteristic feature The functioning of money as a means of circulation is the simultaneous counter-movement of goods and money.

This function can only be performed by real money, which must always be available, or, in other words, cash. In particular, money performs this function in transactions for the purchase and sale of goods for cash, when the goods are transferred to the buyer in exchange for cash. At the same time, when paying in cash, for example, utilities money functions as a means of payment, since there is a time gap - services were provided in the previous month, and payment is made in the current month.

Although real money is necessary to perform the function of a medium of exchange, it plays a fleeting role in this function, constantly moving from hand to hand. Here, receiving money for a manufactured product is not an end in itself; it is needed to exchange it for another product needed by the seller. Thus, in this function it becomes possible to replace full-fledged money with signs representing them. To do this, it is necessary that these signs receive public recognition.

In the early stages of the development of commodity production, metal ingots, in particular gold, performed the function of a medium of circulation. They were accepted by weight, which created inconvenience for exchange. With the beginning of the use of coins in circulation, exchange began to be carried out in accordance with their nominal value. In the process of erasing and deteriorating coins, their value content was separated from their face value, which served as the starting point for the idea of replacing full-fledged money with symbols of value - paper banknotes. Defective money acquires public recognition due to the fact that it is issued by the state, endowing it with a compulsory exchange rate in law. In modern conditions, the state guarantees the constancy of the purchasing power of inferior money, regulating its quantity in circulation in accordance with the needs of the economy.

Through money, goods enter the sphere of circulation and leave it into the sphere of consumption. Money itself constantly functions in the sphere of circulation, moving from one economic entity to another and continuously serving the exchange of goods. However, this circumstance does not guarantee the continuity of commodity circulation in the process of reproduction. As already noted, the use of money in exchange transactions makes it possible to separate acts of purchase and sale of goods in time and space. A delay in the sale of goods can lead to problems for their manufacturer in acquiring other goods he needs for reproduction and consumption. Thus, a rupture in some links of the commodity circulation process can provoke a rupture in its other links and ultimately cause the development of crisis processes.

In modern conditions, as a medium of exchange, money serves mainly the final movement of elements of GDP - retail trade turnover and the sale of retail services. At the same time, the global trend is to reduce the scope of this function. With the development of non-cash payments, where money acts only as a means of payment, cash is being forced out of circulation.

MONEY AS A MEDIUM OF PAYMENT. The purpose of money when performing the function of a means of payment is that they are used as instruments for repaying financial and other obligations. The emergence of such obligations is due to the discrete nature of social reproduction, the fact that all processes of production, exchange and consumption of goods are separated in time and space.

The function of money as a means of payment arises from the process of commodity circulation. Historically, its appearance was due to the emerging need to sell goods on credit. The development of commodity production required exchange transactions, settlements for which, for various reasons, could not be carried out simultaneously with the transfer of goods to buyers. Such reasons are the discrepancy in the timing of the production process of various goods, the difference in the location of the seller and buyer, the seasonal nature of the production of a number of useful goods, etc. This leads to the fact that the purchase is made without prior sale of the goods, and without money for the purchase, the economic entity can purchase the necessary goods only if it is granted a deferred payment. When goods are sold on credit, the real use value is transferred to the buyer, but payment for the goods is postponed in time - a promissory note(bill, check, etc.), in which the value of the goods finds its ideal expression. When the loan is repaid, the ideal value turns into real value.

At the stage of development of commodity production, money was used mainly as a measure of value and a means of circulation. However, with the development of commodity relations, everything higher value acquired their functioning as a means of payment. Having arisen on the basis of credit, the function of a means of payment serves not only credit relations - as a means of payment, money functions in the process of non-cash payments, payment of wages, pensions, scholarships, benefits and income of the population; payment of taxes and fees, etc. In this case, non-cash money is mainly used as a means of payment. Cash performs this function mainly in cases where one of the subjects of the relationship regarding the arising monetary obligation is an individual.

The movement of money as a means of payment has a specific form, different from the form of the movement of money as a means of circulation. As a means of payment, money is no longer an intermediary link in the sale and purchase of goods; their movement acquires an independent character, separated in time and space from the movement of goods. Thus, distinctive feature This function is that there is no simultaneous movement of goods and money, that is, when selling goods, their cash equivalent can be transferred to the seller by the buyer later or earlier than he receives the goods.

If, in its function as a medium of exchange, money only serves the relations that arise between the seller and the buyer, then in its function as a means of payment, the very emergence of these relations is possible only through the use of money. In a developed market economy, most commodity producers are united precisely by the functioning of money as a means of payment, and with the further development of a market economy, as already noted, the scope of use of money as a means of circulation is increasingly narrowing and its use as a means of payment is expanding.

Debt obligations arising in the process of the functioning of money as a means of payment, in turn, can also be used for settlements, that is, independently circulate, passing from hand to hand. Thus, the fulfillment of this function led to the development of money as a means of payment, the emergence of new types of money, in particular, credit money, as well as special institutions that service the movement of money when making payments.

Due to the fact that a characteristic feature of the functioning of money as a means of payment is the separation of its movement from the movement of goods, the development of this function helps to increase the risks associated with the production of goods and other economic activities. Failure to repay their debt obligations on time by some economic entities can lead to the insolvency of not only their counterparties in transactions, but also other economic entities. This is explained by the fact that in a modern market economy its participants are closely connected with each other not only through exchange relations, but also within the framework of the functioning of the financial, banking systems, etc. Increased risks are facilitated by the fact that currently money, as a means of payment, serves not only the movement of goods, but also the movement of capital, including that embodied in securities. This increases the separation of the movement of money from commodity circulation, which is the basis for the stability of the purchasing power of inferior money. To reduce potential risks, it is important to improve payment systems, aimed at reducing the time gap between the movement of money and the movement of goods, ensuring payments are made on time, as well as state regulation of the amount of money in circulation in accordance with the needs of the public economy.

MONEY AS A MEANS OF SUMMARY. Acting as a means of accumulation, money independently exists outside the sphere of circulation. Their purpose in this function is that they store the value of goods and services sold in the most liquid form for future purchases. The possibility of money functioning as a means of accumulation is due to the fact that in the process of reproduction the social product takes not only a productive and commodity form, but also a monetary form, in which the real accumulation of material values is expressed. The need for monetary accumulation is determined by various objective and subjective factors: the need to expand reproduction, insure market risks, purchase expensive goods, etc.

In its function as a means of accumulation, money acts as a specific form of social wealth, that is, it is recognized by society as an economic good that makes it possible to transform it into any commodity at any time in the future. Thus, in contrast to the accumulation of material values, in the process of monetary accumulation, value is preserved in its universal form and is constantly ready, without any preliminary preparation, to re-enter circulation, servicing exchange transactions.

The function of a means of accumulation, like the function of a means of payment, arose from the process of commodity circulation. In the course of performing the function of a medium of exchange, money can stop its movement: if the commodity producer, after selling his goods, does not exchange the proceeds for another product, then they leave the sphere of circulation and begin to function as a means of accumulation. The fulfillment of this function by money, in turn, is a necessary condition for the accumulation of funds for the purpose of subsequent redistribution based on credit, during which money functions as a means of payment.

All types of money can act as a means of accumulation, however, there are features of performing this function with full-fledged and inferior money. The process of accumulation of full-fledged money (precious metals in the form of coins, bars, nuggets, etc.) is carried out in the form of the formation of treasures, since they, having their own internal value, were valuable both in the sphere of circulation as money and outside this sphere as a product.

The important role of the function of a store of value in metallic monetary systems was that it was a spontaneous regulator of money circulation. During periods of decline in production and reduction in trade turnover, the need for money as a means of circulation and payment decreased. The resulting surplus of gold left the sphere of circulation and became a treasure; credit money (banknotes) circulating in such systems, issued in excess of the needs of commodity circulation, were exchanged for gold, which was then hoarded. With the growth of production and trade turnover, hoarded gold as the need for additional cash returned from the sphere of accumulation to the sphere of circulation. Thus, there was always such an amount of full-fledged money in circulation that was necessary to service the circulation of goods.

With the development of national monetary systems and the emergence of central banks, the latter were obliged to accumulate gold reserves in the form of reserves, which were used to ensure the issue of money, the exchange of banknotes issued by them for gold and payments on international obligations. In modern conditions, when gold has ceased to act as a universal equivalent, central banks continue to accumulate it as part of their reserves as a financial asset that has its own value and is used to ensure the stability of the national monetary unit, regulate the balance of payments and other purposes.

Defective money cannot act as a treasure, since it lacks intrinsic value. They function as a store of value, storing value in its most liquid form. Through irredeemable credit money, the process of accumulation of value, temporarily released in the process of reproduction, and its transformation into capital is carried out. At the same time, they act as a representative of social wealth only to the extent that the value that has received its ideal expression in them can be embodied in real use values. Therefore, inferior money can most fully fulfill the function of a means of accumulation only if its purchasing power is constant. The depreciation of defective money in the process of inflation reduces its attractiveness as a means of accumulation, the more, the higher the inflation rate. Hyperinflation finally undermines the foundations of monetary accumulation, a flight from money begins, and economic entities, instead of accumulating money, prefer to accumulate material values.

Initially, people began to save money, turning the excess created economic benefits, therefore, money at that stage acted only as an expression of social wealth. With the development of the commodity economy, monetary accumulation became a necessary condition for the continuous functioning of reproduction and the circulation of capital. The accumulation of money is necessary, first of all, for the implementation of expanded reproduction, since additional investments in fixed capital are required. It is also necessary during the movement of working capital, when temporary gaps arise between the sale of manufactured goods and the purchase of raw materials for their production, etc. The creation of cash reserves at enterprises ensures the smoothing out of emerging disruptions in the production cycle of individual economic entities, and reserves on a national scale help to smooth out imbalances in the public economy.

The population also accumulates money for purchases in the future, saving it in the form of bank deposits, investments in securities, hoarding of precious metals, etc. Savings of the population are one of the main sources of the investment process that ensures economic growth, therefore great importance has an increase in the efficiency of the state credit system in accumulating individual savings and their subsequent redistribution into loans to the real sector of the economy.

Monetary accumulation has objective boundaries. When full-fledged money circulated, these boundaries were quantitatively set by the reserves of monetary metal available in nature and the scale of its production. In the conditions of the functioning of inferior money, its accumulation should reflect the accumulation of real material goods, that is, it is necessary to maintain a balance between the monetary and natural-material structure of reproduction. Otherwise, the possibility of inflationary depreciation of money is created.

FUNCTIONS OF WORLD MONEY is a manifestation of the essence of money in the sphere of international economic turnover, when the counterparties of commodity and financial transactions are residents of different states. The formation of this function is associated with the development of foreign economic relations, the formation of the world market and intercountry capital movement. In fact, it is a derivative of the functions that money performs in the internal economic circulation of countries.

Functioning as world money, money realizes its purpose as:

universal means of purchasing Ї when the purchase of goods and payment for services abroad is carried out in cash;

Section II. Credit system 51

2.1. The need and essence of credit 51

2.2. Functions and laws of credit 54

2.3. Forms of credit, their economic significance 57

2.4. The role of credit in economic development 62

Section III. Banking system 65

3.1. general characteristics central banks 65

3.2. Functions and operations of central banks 67

3.3. Operations of commercial banks. Banking services 72

References 82

This course of lectures contains three sections and is devoted to the consideration of the most important economic categories, basic theoretical principles that reveal the principles, essence and functions of development in a market economy of money and credit, monetary, foreign exchange and banking systems, as well as patterns of movement of market prices, interest rates and foreign exchange courses, their interrelation and interdependence.

Section I. Monetary system

1.1. Money and money turnover

In undeveloped societies, when market relations were not yet established, natural exchange prevailed, that is, one product was exchanged for another without the mediation of money (T-T).

The proportions of exchange were established depending on random circumstances - for example, on how expressed the need for the offered product was among one tribe or community, and also how much others valued their surplus. At the same time, numerous difficulties arose in the exchange process: for example, one of the parties to the exchange did not need the goods offered by the other party.

As trade relations developed many millennia ago, one product stood out from the mass of goods and began to play the role of an intermediary in exchange transactions. For some nomadic peoples, wealth was measured by the number of heads of livestock. In these communities, livestock began to play the role of a commodity-intermediary. Interestingly, the Latin root of the word "capital" comes from caput – head (capitalis − head, chief). In a number of countries, in particular in some areas of the Mediterranean, the intermediary product was salt. In a number of African countries, rare shells were such a product. In Russia, the role of an intermediary commodity has long been played by furs, in particular marten skins as the least expensive (change) unit of account. Such means of exchange were called “kuns” - from marten fur. The more expensive units of exchange were sable and fox skins.

However, such goods - livestock, skins, shells - were not entirely convenient for fulfilling their social function as an intermediary in the exchange of goods. Not all of them were subject to long-term storage; many, when divided into parts, lost their attractiveness, and were difficult to move from place to place.

The development of crafts, and especially metal smelting, somewhat simplified matters. The role of intermediaries in exchange is firmly assigned to metal ingots. Initially they were copper, bronze, iron. As social wealth increases, the role of universal equivalent is assigned to precious metals (silver, gold), which, by virtue of their quality characteristics - absolute liquidity, recognition, rarity, high value with low volume (portability), divisibility, storability, qualitative homogeneity - were, one might say, doomed to serve as monetary material for a long period of human history.

Very soon, ingots of precious metals of different weights began to be branded to avoid constant weighing and as a guarantee against counterfeiting. This is how coins of different denominations (and, accordingly, different values) appeared. At the same time, for money made from precious metals, the denomination reflects their true value, which is why they received the name real or full money. In cases where the face value differed from the intrinsic value of the money (the value was less than the face value), the money was considered inferior.

To make it easier to compare the costs of different goods, monetary units were introduced. For example, the UK currency is the pound sterling. The name of the monetary unit reflects the weight content of the precious metal: sterling (English) means “pure silver”. Now the value of goods can be expressed in the form of price. Price is a monetary expression of value, value expressed in money.

Thus, it can be stated that money- this is a special commodity that has stood out from the general commodity mass and assumed the social function of a universal equivalent. Such money is usually called “commodity money”. As exchange developed, the role of money was assigned to one commodity—precious metals (gold and silver).

These exchange equivalents, in addition to their usual use value, acquire an additional, specific use value: the ability to exchange for all other goods on the market. Thus, they turned into genuine money in their modern sense. The exchange is carried out according to the formula T-M-T: commodity producers exchange their goods for money made from precious metals in order to subsequently exchange the money received for any goods they need.

Thus, many difficulties in trade were overcome. Thus, if the required product was not available on the market, the proceeds could be put aside and waited until it appeared on the market: until foreign merchants arrived or the fair opened. Money arose from the needs of commodity exchange, as it developed and became more complex, it became necessary to isolate a commodity that measured the value of all other goods.

The essence of money is manifested in its functions, which reflect the possibilities and features of their use:

1 .Value measure function. Money performs the function of a measure of value, i.e. serve to measure and compare the costs of various goods. The measure of value is the main function of money. All types of money operating in national economy at a given point in time, are intended to express the value of goods. Each country has its own monetary unit, which is a measure of the value of all goods on the market. Money as a universal equivalent measures the value of all goods. This use of money allows parties to a transaction to easily compare the relative values of different goods and resources. However, it is not money that makes goods comparable, but the socially necessary labor spent on the production of goods that creates the conditions for their equalization. All goods are products of socially necessary labor, so money, which has value, can become a measure of their value. The cost of a product expressed in money is called price. It is determined by the socially necessary labor costs for its production and sale. The scale of prices in metal circulation is the weight of the monetary metal accepted in a given country as a monetary unit and serves to measure the prices of all other goods. Currently, the official price scale has been replaced by the actual one, which develops spontaneously in the market. There are significant differences between money as a measure of value and money as a scale of prices. Money as a measure of value relates to all other goods, arises spontaneously, and changes depending on the amount of social labor spent on the production of a money commodity. Money as a price scale is set by the state and acts as a fixed weight amount of metal that changes with the value of this metal. With modern money, which is not exchangeable for gold, the price of a commodity finds its expression not in one specific commodity (gold), but in all other commodities, resembling an expanded form of value. Products are increasingly gaining public recognition not so much through money as directly through the production process. Since the labor time contained in them already in the production process begins to act to a certain extent as socially necessary, goods turn out to be able to relate to each other already at this stage, and not after preliminary equating them with a monetary commodity in circulation, as was the case at the initial stages of commodity production . Under capitalism, the price is formed not only in the market, but also in the sphere of production, and its adjustment is already taking place in the market. The price of a product in such conditions depends on two factors: the cost of a banknote, which is determined by the cost of goods sold and the number of banknotes in circulation; the relationship between supply and demand for a given product on the market.

2. Function of the medium of exchange. Money as a medium of exchange plays the role of an intermediary in the movement of goods from sellers to buyers. Commodity circulation includes two metamorphoses, i.e. two changes in the forms of value: selling one product and buying another - T-D And D-T. To perform the function of a medium of exchange, money must be directly, physically present in the act of exchange for goods, passing from the hands of the buyer to the hands of the seller at the moment the latter transfers the goods to the buyer, therefore this function is performed by cash;

3. Function of means of payment. The means of payment function occurs when goods are sold on credit, i.e. with deferred payment ( T-DO-D, whereDO is a debt obligation). The sale of goods with the condition of deferred payment is becoming a necessary element of economic life, especially as competition between producers intensifies. The function of a means of payment becomes predominant as credit relations and the system of non-cash payments develop. When making non-cash payment for goods, a spatial and temporal gap arises in the oncoming movement of goods and non-cash money. In this case, money functions as a means of payment, since usually the delivery of goods in a developed market economy precedes the act of payment. Money functions as a means of payment in cases where a previously incurred debt is paid, for example, when repaying a loan;

4. Function of a store of value. Acting as a means of accumulation, money acts as effective demand deferred for the future. Subjects of economic relations can accumulate wealth by purchasing jewelry, real estate, antiques, etc. However, using money as a means of saving has one significant advantage. This advantage lies in their absolute liquidity, i.e. in the ability to be used as a means of payment at any time without losing its nominal value.

5. Function of world money. This function is formed and developed as international exchange and international economic relations grow. Diverse economic ties between countries generate cash payments and receipts. Money begins to perform the above functions at a qualitatively different level – at an intercountry level. Money operating within the framework of international economic relations is usually called world money.

Types of money. The main types of money are commodity And paper credit money.

Gold and silver - types of commodity money - for a long time became the basis of monetary circulation in different countries and the world community as a whole.

However, in Europe, already in the 18th-19th centuries, gold and silver coins participated in monetary circulation along with “signs of value.”

The invention of paper money is attributed, of course, with a large degree of convention, to ancient Chinese merchants. Initially, receipts for acceptance of goods for storage, payment of taxes, and issuance of a loan acted as additional means of exchange. Their circulation expanded trade opportunities, but at the same time, it often made it difficult to exchange these paper duplicates for metal coins.

The emergence of “signs of value” - substitutes for real money - is due to the fact that as trade turnover grew, problems arose in providing it with metallic money. As the productive forces developed and the social division of labor deepened, a transition occurred from manual labor to machine labor, which stimulated the growth of cities and the urban population. Along with rapid growth trade turnover, the number of purchase and sale transactions also increased, while the amount of most transactions concluded was very small, since the majority of the population were poor. Under these conditions, there was a shortage of change money, and money made from precious metals reached the limit of divisibility.

Another fact that pushed the evolution of monetary forms was the process of abrasion of gold and silver coins. At the same time, despite the fact that their weight content decreased, they continued to be accepted in monetary circulation at par.

In the process of long-term use of money as a means of payment and circulation, it became clear that these functions are to a certain extent technical in nature. Money as a medium of exchange is present fleetingly in the act of exchange: immediately after receiving money for a product, it is exchanged for other goods. So, can gold money be replaced in this function? This is how the idea arose to introduce “money substitutes” into monetary circulation, while guaranteeing their exchange for money made from precious metals in a fixed proportion established by law.

As soon as “substitutes for real money” appeared in monetary circulation, the stability of monetary circulation was undermined. Monetary circulation is stable as long as the number of “substitutes” does not exceed that established by law and backed by gold. However, governments are always tempted to release more of these “substitutes” than is established by law: after all, this is very profitable! Having spent 1,000 monetary units on the production of “substitutes”, you can issue them for the amount (face value) of 1,000,000 monetary units and exchange them for goods worth 1,000,000. The difference between the denomination of government-issued, not backed by gold “substitutes of money” and the cost of their issue is − This share premium states. At the same time, unsecured money enters the monetary circulation channels, having a forced denomination established by the state and having practically no intrinsic value. Such “extra” money for the economy and monetary circulation is usually called “paper”; they cause a violation of the stability of monetary circulation, rising prices and distrust in the money issued by the government.

Paper money cannot be identified with credit money.

Credit money – a type of money that arises in the context of the development of credit relations between economic agents. Credit money requires a government guarantee to function effectively. This guarantee is provided due to the presence of state laws regulating the rules for the issuance and circulation of bills and banknotes.

The following varieties are distinguished credit money:

1) Bill of exchange− is an unconditional written monetary obligation debtor(promissory note) or order supplier (bill of exchange - draft) pay the amount indicated on the bill to the holder of the bill, or, by his order, to any other person specified in the bill. The bill must be drawn up in the form prescribed by law. The law strongly supports the reliability of the bill of exchange. A bill of exchange is a payment and credit instrument.

2) Check− this is a monetary document of the established form, containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder. A check is an instrument used to make payments. If a client has a deposit with a bank, the bank can issue checks to the client for the amount of the deposit.

3) Banknote (classical, modern) − This is a perpetual debt obligation of the central (issuing) bank, secured by all its assets.

Please note that as credit money evolves, the reliability and liquidity of the instruments used increases: if a bill is a monetary obligation of any economic agent, then a check is an obligation of a credit organization - a very conservative institution, and a banknote is an obligation of the Central Bank of the country, in fact - national money.

One of the manifestations of the progress of credit money is the emergence and development of its derivative forms, the use of which opens up new opportunities for moving forward the monetary system and improving credit and settlement and payment operations.

Payment system cards (debit, credit, etc.)– a tool for paying for goods and services without using cash using the account holder’s own funds or credit resources from commercial banks. Just like checks are “dormant orders” to activate deposit money held in the bank. While the order is dormant in the depositor's pocket, the money on deposit in the bank can be used by the bank at its discretion, for example, it can be provided for credit card payments to other bank clients.

Derived forms of money should not be identified with money itself. These are the tools through which non-cash and electronic money are set in motion. Modern derivative money and their appearance and development are associated with the progress of banking technology and Internet technologies. An example of derivative money is electronic money.

Electronic money− is a means of payment that exists exclusively in in electronic format, that is, in the form of records in specialized electronic systems on the Internet. Electronic money allows you to make a fairly wide range of different payments. As a rule, these are internal payments of the Internet payment system within which electronic money is issued, but payments to external systems, including regular bank transfers, can also be made. There is a fundamental difference between electronic money and ordinary money; it lies in the fact that electronic money is not a substitute for ordinary money, but functions as a means of payment within the framework of the electronic system in which it is issued.

In addition to various species there are different types of money forms existence of money. Money can be cash or non-cash. Cash circulate in the form of banknotes, treasury notes and small change. Non-cash money exist in the form of an entry in a bank account, they move from one economic agent to another, moving from the account of one bank client to the account of another bank client. Non-cash money represents the bank's obligation to return money to the client in cash upon his request or transfer it to another account in payment for goods purchased by the client. Both metal money from precious metals and paper credit money can be converted into non-cash money. The condition for the existence of non-cash money is the presence of banks.

Theories of money. Money is an important element of any economic system, ensuring the fulfillment of payment obligations of economic agents. There are various theories that differently assess the role of money and the monetary system in economic development. These theories arise, are confirmed and dominate for some time. Some of them are rejected over time, since practice does not confirm, or even simply refutes, their postulates.

There are three main theories of money: metallic, nominalistic and quantitative.

Metalistic theory of money. This theory arose in England during the period of primitive accumulation of capital in the 16th-12th centuries. It dominated within the framework of the theory of mercantilism. Depending primarily on the assessment of the role of money and the monetary system in the development of economics, the theory of money was characterized by the identification of the wealth of society with precious metals, which were credited with the monopoly performance of all functions of money.

It was developed in its most complete form by the mercantilists (T. Men, D. Horse and others in England; J. F. Melon, A. Montchretien in France), who put forward the doctrine of full-fledged metallic money as the wealth of the nation. A stable metal currency, in their opinion, was one of the necessary conditions for the economic development of bourgeois society. The mistake of the supporters of the metallic theory was in identifying money with goods, not understanding the difference between money circulation and commodity exchange, not understanding that money is a special commodity that serves as a universal equivalent. Representatives of the metallic theory denied the possibility of replacing full-fledged metallic money with their signs in internal circulation.

Nominalistic theory of money. Prominent representatives of this theory were the Englishmen J. Berkeley (1685-1753) and J. Stewart (1712-1780). It was based on the following two provisions. Firstly, money is created by the state, and secondly, the value of money is determined by its face value. Representatives of this theory of money argued that money is only symbols that have nothing to do with goods; Only the denomination of the currency is important. Nominalists concentrated their attention on the analysis of the functions of money as a means of circulation and a means of payment, in which it is possible to replace metallic money with paper money.

The main mistake of representatives of nominalism is the position that the value of money is determined by the state. Thus, they deny the labor theory of value and the commodity nature of money. The mistake of the nominalists was also that, having separated paper money from gold and from the value of goods, they endowed them with “value”, “purchasing power” by adopting the appropriate legislative act.

Quantity theory of money. The founder of the quantity theory of money was the French economist J. Bodin (1530-1596). This theory was further developed in the works of the Englishmen D. Hume (1711-1776) and J. Mill (1773-1836), as well as the Frenchman C. Montesquieu (1689-1755). D. Hume, trying to establish a causal and proportional connection between the influx of precious metals from America and the rise in prices in the 16th-17th centuries, put forward the thesis: “The value of money is determined by its quantity.” Proponents of this theory saw money only as a means of exchange. They erroneously argued that in the process of circulation, as a result of the collision of the money and commodity masses, prices are allegedly set and the value of money is determined.

The quantity theory of money establishes a direct relationship between the growth of the money supply in circulation and the growth of commodity prices.

The foundations of the modern quantity theory of money were laid by the American economist and mathematician Irving Fisher (1867-1947). I. Fischer denied labor value and proceeded from the “purchasing power of money.” The modern quantity theory of money, studying macroeconomic models and the general relationship between the mass of goods and the price level, argues that the basis for changes in the price level lies mainly in the dynamics of the nominal money supply. It puts forward appropriate practical recommendations for stabilizing the economy by regulating the money supply and the supply of money in the economy.

K. Marx gave a devastating critique of the quantity theory of money. He showed that adherents of this theory do not understand that precious metals, like other commodities, have intrinsic value, and portray the matter in such a way that “... commodities enter into the process of circulation without price, and money without value, and then in this process a certain part of the commodity mixture is exchanged for a corresponding part of the metal pile.” 1 K. Marx emphasized that representatives of the quantity theory did not understand the functions of money as a measure of value and a means of accumulation.

A variation of the quantity theory of money is monetarism.

Monetarism. Monetarism is understood as a general theoretical approach that recognizes the exceptional importance of money in the economy and gives priority to a special type of monetary regulation - through regulating the growth rate of the money supply - as opposed to other methods of influence, primarily fiscal, as well as monetary policy, but affecting the economy not through the money supply, but through the regulation of interest rates.

The development of monetarism is associated primarily with the name Nobel laureate 1976 by Milton Friedman (b. 1912), A. Schwartz, K. Brunner, A. Meltzer, D. Laidler, R. Selden, F. Kagan also made a great contribution to the development of this concept.

M. Friedman believed that money serves: 1) the main reason for changes in real income in a short period of time and 2) the only reason for changes in nominal income over long periods of time. Long-term economic growth, in contrast, is determined by resources, technology and consumer preferences.

M. Friedman and A. Schwartz in the work “Monetary History of the United States, 1867-1960.” (1963) identify a pattern according to which the growth rate of the money supply in circulation is associated with the movement of the cycle, anticipating the overall rate of development of the business cycle. Research has discovered a relationship between money supply growth rates and extreme points in the business cycle. During the period from 1908 to 1916, money supply growth began to increase approximately 12 months before the peaks of the cycles. Likewise, money supply growth began to increase until the bottom of the business cycle was reached. Within one business cycle, the relationship between the money supply and the absolute price level is not as close as in long-term time intervals.

The main provisions of classical (Friedman) monetarism are as follows:

1. The capitalist economy is internally stable relative to a certain optimal level of production, which is determined by the development of productive forces, the supply of resources, etc. This optimal level of production does not exclude the presence of some unemployment, which is associated with institutional features of the economy, for example, insufficient wage flexibility. We are talking about the so-called natural rate of unemployment. Achieving the optimal level of production is ensured by the action of the price mechanism, which is a way of allocating resources. State intervention in this mechanism should be minimal.

2. A change in the quantity of money has a contradictory effect on the interest rate: an increase in the supply of money first causes a decrease in the interest rate, and then an increase in costs and inflation increases the demand for loans, which leads to an increase in the interest rate. In addition, high inflation increases the difference between nominal and real interest, and the anticipation of higher inflation increases interest even further.

3. In long-term equilibrium, money is neutral, i.e. there is a proportionality between money and prices, based on the stability of money demand (or its inverse value - the velocity of circulation of money). In contrast, the marginal propensity to consume and the multiplier are considered unstable quantities. The long-term real interest rate cannot be changed by monetary policy to stimulate investment and capital accumulation. The long-term rate is determined by real factors, productivity and frugality.

4. In short and medium periods of time (up to 5-7 years), money, on the contrary, is not neutral and can cause real changes in the economy. Because of its short-term impact on output, money is important in determining the real level of employment and income. Monetary influence arises due to the discrepancy between the actual and desired values of real cash balances, which causes an unpredictable change in the supply of money. Changes in the money supply influence prices through interest rates, changing the composition of the asset portfolio. Changes in the demand for money affect the speed of circulation of money, which depends on the costs of storing money (the interest rate and the rate of inflation), on the value of real income per capita.

5. The business cycle increases the impact of changes in the money supply on income. A monetary crisis leading to a decrease in the supply of money creates a condition of depression.

6. The volume of money supply is under the control of the Central Bank, which directly affects the size of the monetary base, which is the main indicator of monetary policy and its main instrument.

7. Inflation is a monetary phenomenon in the sense that it can only occur when the quantity of money grows faster than the level of production. An increase in government spending does not cause inflation unless it uses additional money supply.

The recommendations of monetarism boil down to the following: the average annual money supply growth in conditions of a slight decrease in the velocity of money circulation should be 4-5% per year to ensure an average annual increase in real GNP of 3%.

Keynesian theory of money. In 1929-1933. A global economic crisis called the Great Depression broke out. Its result was a reduction in gross national product and investment, and an increase in unemployment. The crisis affected the USA, Germany, France, and England. All classes and segments of the population suffered. There were massive bankruptcies.

Under these conditions, the search for new theoretical models began. During this period, a new course began to be pursued in the United States - the course of F. Roosevelt (1882-1945), and neo-Nazism and the ideology of fascism became widespread in Germany and Italy.

IN In the 30s, the name of J. appeared in economic science. Keynes (1883-1946). In 1936, the main work of J. M. Keynes, “The General Theory of Employment, Interest and Money,” was published. With the publication of this book came the end of the theory of the “invisible hand of the market”, the end of the theory of automatic adjustment of the market economy.

J. Case's work contains a number of new ideas. From the first pages of his book, he points out the priority of the first word in its title, i.e. general theory, in contrast to the private interpretation of these categories by neoclassicists. Next, he examines the cause of crises and unemployment and develops a program to combat them.

Thus, J. Keynes for the first time recognized the existence of unemployment and crises inherent in capitalism. He then declared the inability of capitalism to cope with these problems with its own internal forces. According to Keynes, government intervention is necessary to solve them. In fact, he dealt a blow to the neoclassical movement as a whole, as well as to the thesis of limited resources. According to Keynes, there is not a scarcity of resources, but, on the contrary, an overabundance of them, as evidenced by unemployment. And if part-time employment is natural for a market economy, then the implementation of the theory presupposes full employment. Moreover, by last employment, J. Keynes understood not absolute employment, but relative employment. He considered it necessary to have 3 percent unemployment, which should serve as a buffer for pressure on the employed and a reserve for maneuver when expanding production.

J. Keynes explained the emergence of crises and unemployment by insufficient “aggregate demand”, which is a consequence of two reasons. He called the first reason the “basic psychological law” of society. Its essence is that as income increases, consumption increases, but to a lesser extent than income. In other words, the growth of citizens' income outpaces their consumption, which leads to insufficient aggregate demand. As a result, imbalances in the economy and crises arise, which in turn weaken the incentives of capitalists for further investment.

J. Keynes considers the second reason for insufficient “aggregate demand” to be the low rate of return on capital due to high level percent. This forces capitalists to keep their capital in cash (liquid form). This harms investment growth and further reduces “aggregate demand.” Insufficient investment growth, in turn, does not provide employment in society.

Consequently, insufficient spending of income, on the one hand, and “preference for liquidity”, on the other, leads to underconsumption. Underconsumption reduces “aggregate demand.” Unsold goods accumulate, which leads to crises and unemployment. J. Keynes draws the following conclusion: if a market economy is left to its own devices, it will stagnate.

J. Keynes developed a macroeconomic model in which he established the relationship between investment, employment, consumption and income. The state plays an important role in it. The state must do everything possible to raise the marginal (additional) efficiency of capital investments, i.e. the marginal profitability of the last unit of capital due to subsidies, government purchases, etc. In turn, the Central Bank must lower the interest rate and maintain moderate inflation, which will stimulate the growth of capital investment. As a result, new jobs will be created, leading to the achievement of full employment.

John Keynes placed his main bet in increasing aggregate demand on the growth of productive demand and productive consumption. He proposed to compensate for the lack of personal consumption by expanding productive consumption.

Consumer demand needs to be stimulated through consumer credit. J. Keynes also had a positive attitude towards the militarization of the economy and the construction of pyramids, which, in his opinion, increases the size of the national income, ensures employment of workers and high profits. Keynesian and monetarist approaches to the state's monetary policy are presented in Table. 1