Perfect money. "ideal money" by john nash What can be ideal money

Considering the options for building an ideal state, one cannot ignore the issue of its financial system. Personally, I have always perceived money as the blood of life. If the enterprise has money - it lives, turnovers began to fall - the enterprise feels like a body that has lost its blood. Money circulates like blood - from the buyer to the seller, from the seller to the bank, from the bank further in a circle. Somewhere the economy is dynamic and the rate of blood circulation is high, but somewhere in weak undeveloped countries blood hardly flows - it is not enough and the speed of circulation is minimal. If you do not discuss the issues of economic independence of the state, then you can do nothing at all - everything will remain a sweet dream.

And what's interesting is that there are things that we often don't think about. Say, the change of seasons, or the natural landscape in which we live. We take it all for granted. We have a similar attitude to money. They need to be earned, and in order to provide themselves with comfortable living conditions - there should be a lot of them. But what is money? Accumulator? Instrument of payment? Universal exchange equivalent? Where do they come from, how do they handle?

In economics, there are different theories about money, but the more I studied them, the more clearly I understood that either people really do not understand what money really is, or scientific literature is deliberately made defective, so that humanity in its mass will continue to fornicate in 3 pines. After all, even advanced goyim will read "progressive" textbooks, where the question of money is presented in such a way that everything seems to be correct, but on the other hand ... it is so vague.

To begin with, I have highlighted the issue of money issue. Who implements it? It turned out that the dog is not even buried here - the whole devil is sitting here. You won't read what I have to say in any textbook.

There is a belief that the state, as an independent economic entity, should be within the same framework of civil law relations as other participants in economic activity. That is, what the state has not earned, it should not have the right to spend. And therefore, the printing press should not be a tool for the state to plug holes in its budget, the frequent activation of which will lead to an increase in inflation. Well, there is a reasonable grain here.

Another point of view on this issue is that if the money machine is not in the hands of the state, then the state itself becomes a hostage of the group of people that owns it. After all, the issue of money is the right to legally print money. The scientific literature says - to introduce them into circulation. But let's be sincere with ourselves - money suddenly comes out of nowhere and is appropriated by those who drew it. It is impossible not to recall the words of Rothschild: "Let me manage the money of the country, and I don't care who sets the laws there."

Over the past 3 years, the money supply in Russia has increased by 10 trillion rubles. In Russia, the printing press is in the hands of the Central Bank of the Russian Federation. In America, 8 trillion dollars were issued, in Europe about 5 trillion euros. And here the machine is in private hands. In general, I figuratively say machine, non-cash money does not even need to be printed, it is enough to enter any amount from the keyboard and it is fabulously credited to the account of the issuer. Moreover, what surprises me in this whole situation is that Greece, worth 10 billion euros, cannot make ends meet in its budget, they are satisfied with an indicative flogging, and who? Those who, behind the backs of all EU states, are introducing new trillions of Euros into circulation?

I see a certain very clever gentleman, rather a group of gentlemen who have harnessed dozens of EU countries to the economic harness, depriving them of their state independence in the issue of monetary emission. This profit, which they receive and direct to the development of democracy around the world, I would define as a tribute.

The second point - the main problem of monetary regulation is that for a universal exchange equivalent, which is money, a certain solid foundation is needed, the value of which does not depend on the volume of its supply in the market. More often than not, gold was the equivalent. It was in relation to gold that all state currencies were denominated for most of human history.

In general, all economic theory revolves around 2 extreme situations, which are easiest to demonstrate with examples:

In the first case, we will take an extremely simplified model - we will reduce the state to 1 person, let it be a blacksmith who forges horseshoes. For example, in this state there is a treasury - 10 gold coins, and a blacksmith for the previous time forged 10 horseshoes. 1 horseshoe = 1 gold coin. The blacksmith continues to work and makes 10 more horseshoes, but the amount of gold has not changed, and it turns out that now each horseshoe costs only ½ a coin. This example shows that with the growth of the economy there is a need for money emission. The amount of money in circulation must correspond to the amount of goods and services.

The second example is that in the 16-17 centuries gold poured into Europe from the conquered colonies in India and America. Hundreds of tons of free gold created an excess supply of money, but did not increase the amount of goods. As a result, the price of all manufactured goods simply increased 5-6 times. That is, there is the opposite effect - there is a lot of money, but the volume of goods and services has not increased, there has been a rise in the price of goods in proportion to the increased money supply.

But ... gold is also a commodity, and it may be close to the required characteristic, but still not ideal. If a philosopher's stone appears that turns everything into gold, then its value will collapse.

The cost of everything, whatever it may be, depends on the volume of the offer. So what can we do with ideal money - a certain standard of value, the value of which would be stable in this unstable world of market relations? There is no answer to this question either in the modern economy, and I wondered - why?

Money has long become virtual, and the equivalent of value is sought in the material world. So maybe ... we're just looking in the wrong place? The whole theory of surplus value, as the basis of modern economics, is built on labor! It is we who, by our labor, create added value for any product or service. And why not equate the cost of a certain virtual currency with workdays or hours of labor?

It is clear that the cost of an hour of working time is different for different people, but let's not immediately reject this idea - you can easily enter a correction factor, even if we take the minimum wage as a basis, then for the teacher we will introduce the coefficient K = 1.5 and for Minister K = 100. From each according to his ability, to each according to his work ... He who does not work does not eat. And we are for justice. I will express the denomination of the future ideal currency in the amount of labor produced.

And I would also give a third example, from myself. I have always been impressed by the phenomenon of rapid economic recovery in European countries after the war. The Americans gave the Europeans several hundred million dollars in debt, and they, having bought American goods, factories and plants, not only rebuilt their economy, they, in a global sense, created a product that has real value. In much the same way, the Great South Korean Economic Miracle happened. Those. look: initially there is nothing, we borrow money, build an economic basis, and, oh, you've got an additional sector of the economy. But what if ... this money “on loan” is simply “emitted” in the way indicated above? If we just issue money, it will generate inflation, but if we issue money for specific programs for economic development? Then, at the output, we will receive a proportional increase in GDP, and it turns out that we took money for development out of nowhere, just as the Americans sponsored Europeans and Koreans with unsubstantiated debt obligations, but at the output we got a specific result. It's phenomenal.

Let's return to economic theory, the third point that struck me unpleasantly in the "scientific" theory.

MV = PQ is the basis of modern monetary policy, where MV is the mass of money multiplied by their velocity of circulation, and PQ is the value of goods multiplied by their quantity. I was somehow confused by this pseudoscientific formula. In appearance, i.e. in the form of presentation of the material - everything seems to be beautiful, but if you carefully analyze this formula, then I noticed several contradictions. I have not been able to imagine PQ as the product of the cost of goods by their quantity. And what to include and what is not included in the calculation of goods or services? In England, there is now a lively discussion about whether it is necessary to include in the calculation of GDP the cost of services of illegal prostitution and drug trafficking?

And how does the value of the money supply of the national currency, rotating in the domestic market, compare with the circulation of dollars in all markets, especially when international supply contracts are concluded in dollars? Should the Americans take into account, in calculating the money supply, those turnovers that are made around the world in dollars? Naturally, the answer is YES, moreover, using foreign currency in our internal calculations, we are actually engaged in ensuring its purchasing power. And the more deals we do in dollars, the more the US Fed can draw new dollars.

Then, such an indicator as the velocity of circulation of the money supply. It turns out that if PQ, the value that corresponds to GDP at the country level, is divided by the volume of money supply, then we will get the turnover rate. And the value inversely proportional to it turns out to be the degree of monetization of the economy. For the sake of curiosity, I first calculated the velocity of circulation of the money supply:

Here I will clarify that I took the M2 aggregate as the money supply, its value, like the volume of GDP, can be found quite easily on the Internet. Here are the data of the Central Bank of the Russian Federation on the size of the money supply by years in billions of rubles.

From this, by the way, it is perfectly clear that over the past 3 years, 11 trillion 400 billion rubles have been "issued" in the Russian Federation. It turned out more difficult with GDP:

The total is:

2010 - 45,173 billion rubles. turnover rate = 45173 / 15267.6 = 3 (monetization 33%)

2011 - 54,585 billion rubles. turnover rate = 54 585/20 011.9 = 2.7

2012 - 61845 billion rubles. turnover rate = 61845 / 24483.1 = 2.5

2013 - 67,229 billion rubles. turnover rate = 67229/27 405.4 = 2.45 (40.8%)

So it turns out that the value of the money supply in Russia is growing, the rate of its turnover seems to be decreasing, but at the same time the monetization coefficient is increasing.

In the United States, for comparison, in 2012 - 16245 billion dollars. GDP, and the aggregate of money supply M2 = 9.78 trillion. Dol. Turnover rate = 16.245 / 9.78 = 1.66, monetization ratio 60%.

And then I found a table of monetization ratios for other countries:

And looking at her, I thought - and why the hell are they telling us any heresy about the speed of circulation? In different countries, it can differ by a factor of 5, and Russia is only catching up with the main developed countries in terms of money supply.

Then the question arises - what is considered the money supply. In the USA and in the Russian Federation, 4 aggregates characterizing the money supply are distinguished, in Europe 3, in Japan 2. According to the general logic, time deposits, government securities are added to cash M0 and they receive M1, M2, M3 and even M4. The more long-term the deposit, the lower the liquidity, but the larger the volume. But here's what surprised me - not a single textbook, when assessing the money supply, takes into account the savings of the country and citizens in the form of real estate, infrastructure and other tangible and intangible assets. I believe that just as in Einstein's formula, mass goes into energy and energy into mass, so money goes into savings, and savings into money. It is not clear why only the blood of current and urgent operations is considered money, but what about the accumulated fat, which can also become blood? All our factories, factories, real estate, infrastructure, land, minerals - they all can become money. Where we place surplus money - in the land, apartments - cars, in a running business. And what about investments in education and culture - albeit an intangible, but also an asset. Why have I not met anywhere in the economic theory taught to the goyim that these accumulations are taken into account? I, of course, apologize - but this is dancing with a tambourine, not a theory.

But money is also a political resource. A donkey laden with gold is capable of conquering any city. The psychological aspects of money circulation is a separate topic.

Well, in the conclusion of this article - a bomb. I found one global vulnerability of the entire world financial system. Recently, a lot of virtual money has appeared - all sorts of points, web money, etc. etc. Some are pegged to national currencies, some set their own exchange rates. Everyone is trying to work according to the laws of the country where they are registered. And for 15 years I have not written a dissertation on the topic of "theory of the virtual state." And who prevents, having created a virtual state, to establish in it their right and a virtual monetary system, let's say the same points, estimated in workdays.

Generation is a process of self-excitation through positive feedback.

In all countries of the world, the central bank and the banking system are separate. The banking system creates a multiplier for multiplying the money supply depending on the reserve requirement rate.

Granny with seeds in front of the bank does not issue loans, and the bank, in return, does not sell seeds. Everybody is good. What if, within the framework of a virtual state, the central bank is combined with the banking network? If the parent bank takes out a loan at, say, 10% per annum, and through the bank multiplier, distribute money at, say, 2% per annum, then with a multiplier ratio of more than 5, a positive feedback arises. Moreover, such that, with a good systematic approach, it will be able to suck out all the cash of all countries of the world like a vacuum cleaner ...

I love money, but they don’t me. Rather, my relationship with money is like the love of a medieval knight for the Beautiful Lady. She Who is white as snow, as pure as the April sky, wise as a cool wind - at best accepts my adoration. But does not reciprocate. I'm not worthy of her. She is somewhere out there, in the distance, and in the arena I collide, lifting my visor, with spears with another admirer of Her. Why am I participating in this tournament? Not even to win Her favor. In order for It to become even more beautiful. You have to satisfy your other needs with the help of "just money."

When I went to France for the first time to make some more or less important purchase - a camera, I think - the seller puzzled me. He asked: "How will you pay, monsieur, by credit card, check or liquid?" My French was then very bad, and the word "liquide" I understood only as a liquid. Only later did I learn that in this country already from the 16th century it means cash. What is needed, like water, and is usually (is it?) Available, like water.

That is, money should be transparent, fluid and cold, like spring water. It seems that this image corresponds to "electronic" money, moving at a breakneck speed, transparent thanks to banking and government control, and - most importantly - intangible. They cannot be touched. You can only immerse yourself in them for a while. They are nothing but a symbol, or, to put it in a scholarly way, the "eidos" of economic activity. They are, and they are not. Talking about "electronic" money and their real presence in our mortal Universe is the same as arguing how many angels (not one, forty thousand, or an infinite number) will fit on the tip of a needle. The fact of the matter is that angels, uncreated and immaterial beings, can sometimes acquire a fleshly weight, fight men and conceive children with human daughters. It is this ambiguity that prompts people, in spite of everything, to prefer traditional money. Although they are now mostly made of paper rather than rare metals, they still calm the human mind with their unconditional substance. They crunch, shimmer with holograms, get dirty, become greasy, huddle in rotten lumps in the depths of the pockets of a worn-out coat. But they are real money. Next to them you feel like next to a living being, and not with an ethereal angel.

In addition, the fact that real money has some, so to speak, warm-bloodedness, and allows them to make all kinds of fraud. For example, avoid taxes. The seller was delighted when I paid him with "liquid".

It is interesting to see how representatives of different nations call their money when they come up with affectionate or contemptuous nicknames. This often helps to better understand their psychology.

As you know, Russians call rubles "cabbage". The plant, chthonic mythology is clearly visible here. Something that grows from the dark depths of mother earth. But in cabbage, as you know, children are also found ... Appeared during perestroika, as a result of inflation, the name "dried" is evidence of the dying of the national currency. I wonder if this contemptuous nickname will die out as a result of the coming denomination and if the ruble finally stabilizes? And the ruble is also called "wooden" - that is, again, it is something dead, made of dried wood. The deadness of the ruble is even more clearly manifested in the word "plywood". Interestingly, by the way, in French "check en bois", that is, "wooden check", means a check that is not covered by a bank account. Money has also long been called "grandmothers" - this is a memory of the once popular national game of grandmothers, for which horse or cow bones filled with lead were used. This is how people remember their childhood ...

It is also significant that Russians often call their now favorite currency, US dollars, "greens" or simply "greens." Again - a vegetative, live theme.

The Americans themselves hardly use the word "green" in relation to their money. As you know, they call them "bucks". And "buck" is one of the names for a deer. Most likely, here we come across a memory of the heroic times of the Wild West, about trappers dressed in deerskin outfits, and well-aimed arrows. The dollar is what needs to be shot.

The French also adhere to weapon symbols in their relationship with money. They call their francs "bullets" ("les balles"). However, a bullet is not a deer. She can be shot at yourself.

Neighboring Italians are not particularly philosophical. Lyres are called lyres. However, a small piece of paper in a thousand lire is "scudo", the name of a coin that was once common. But the Italians, who fell into the abyss of hyperinflation before the Russians, also use the nickname "dried", "secco". National mythologies coincide.

The burning Spaniards lovingly call their peseta "rubia" ("blonde"). They explain this by the fact that some banknotes are golden in color. But, rather, the point, I think, is that the Pyrenean brunettes see the image of a gentle blonde beauty in money.

Residents of foggy Albion, proud and reasonable Britons, prone to ironic melancholy, call the pounds sterling simply - "bread". "Not by bread alone ..."

And the Germans call their stamps - stamps. But "money in general" is called "Kohler", the same "cabbage". Eternal friends-enemies were once again close to us.

Their relatives from the Dutch bogs do not call their guilders other than guilders. It is strange, however, that the official name of the guilder is florin. But for some reason, a piece of 10 of these same florins is called "yuti". What this means, the Dutch themselves find it difficult to explain, but they say that the word comes from Yiddish. What does that mean? Remembrance of Baruch Spinoza?

The Poles call their zloty rather contemptuously "pennies". Once "grosz" was the name of a very respectable gold coin, and the word comes from the German "gross", large. But this has already been forgotten.

For the Israelis, the shekel is "jubot" or "stifot". The first word means "a lot of little things" and the second means "a lot of money". That is, either you are rich with shekels, or you carry a bunch of rubbish in your pockets. Understand as you want.

The Georgians dubbed the national currency "lari", which simply means "wealth". But often, in the old fashioned way, their wealth is called rubles.

The Japanese, so culturally sophisticated and sophisticated, for some reason have not invented any nickname for the yen. Either they respect her so much, or, being partly Buddhists, they do not consider it possible to have any feelings in relation to such a base matter as money.

But money is not only a name. Although, as you know, "in the beginning was the word", money has long acquired, as already mentioned, material form.

And it is very important that money is the pictures that people have to deal with most often. No "Mona Lisa", no "Trinity" by Rublev, no "David" by Michelangelo can compete with money in terms of the effectiveness of visual impact on the masses. You see money, at least some, every day. The money used by the people can say a lot about this people, about the worldview prevailing in it, about the political regime of the country.

It is not without reason that such socially and aesthetically advanced people as TV personality Leonid Parfenov and gallery owner Marat Gelman, in collaboration with artist Elena Mao-Kitaeva, started an action last year to invent new Russian money. The result was disastrous. Not only because the design of banknotes offered to post-Soviet Russians was surprisingly dull (or, perhaps, the authors were too clever with "fashion"), but also due to the impossibility of ranking the cultural heroes of Russia. Whom to choose? Who costs how much? Who is more important, Pushkin, Tolstoy or Tchaikovsky? In this sense, those in power today are much wiser. In the conditions of complete doubtfulness of the existing national mythology or, if you like, the "Russian idea", they diligently remove everyone from the money. Remember Yevtushenko with his "take Lenin out of the money"? Our authorities follow this recommendation to the end, replacing even completely indisputable cultural heroes, like Pushkin, with images of all kinds of buildings, geological phenomena and monuments that most Russians have never seen before. What would have happened? Some people like St. Sergius of Radonezh, others like Vl. Mayakovsky. Some do not like the soul in Stolypin, others are ready to fall in love with Gapon's priest. And what to do with Marshal Zhukov, Daniil Kharms, Pavlik Morozov (who was convicted by all, but inevitably from duty at the entrance to modern Russian history), Nikolai the Last, or Nikita Khrushchev? It is absolutely impossible to understand all this, so our rulers are right: look, Russians, landscapes with traces of the efforts of your distant and close ancestors.

It is possible to create a subordination of cultural and historical heroes only in a country where everything is already clear. For example, in the USA: their banknotes depict figures who have died long ago and are of no interest to anyone except professional historians or rabid patriots. It is hard to imagine that in the next 50-100 years dollars will be introduced into circulation with JFK, Martin Luther King or Michael Jackson. In European countries, money is also used to draw characters who have no real power over the modern population. Whom does Blaise Pascal harm or help in France now, besides the philosophers? What can the average German woman have for or against Schubert's wife? What do the Spaniards care about their writers and historical figures? Yes, absolutely nothing.

There are, of course, incidents: the French reproduced Delacroix's "Freedom on the Barricades" on hundreds of tickets. And then it turned out that it was better not to meddle with them in Algeria, the former French territory. Fundamental Muslims refused to take such filth in their hands - money on which a woman with bare breasts is drawn.

In general, Western money is either terribly boring or turns into toys for grown children. These are the Dutch "florins", multi-colored candy wrappers with sunflowers, tulips and birds, made in a high-tech style. Or a masterpiece of this kind of myth-making, like a fifty-franc piece of paper dedicated to Antoine de Saint-Exupery. In addition to the portrait of the pilot-writer, the image of his plane and the drawing with the Little Prince, this banknote also has a watermark: a touching elephant can be seen in the light under the hat.

But this, the Russians, is possible with them. We still have to wait.

And it is useful to look around the former USSR. With the money of our former compatriots, you can learn history and sociopsychology. Who is in that much. Some draw some great writers and scientists known only to them (I apologize, however, in advance, to the Estonians, Latvians and other inhabitants of the limitrophes). Others embody dreams of a great multi-thousand-year history, depicting princes in tiaras and crowns on their banknotes. Still others, more modest, simply engage in activities in the genre of landscape and animalism. It's a pity, I must say that bunnies and wolves from Bialowieza are no longer in common use - the money was cool, I could live and live in a country where kindergarten pictures serve as currency ... Peace and quiet, not like with a mustache dad. And the most, already in the full sense, frostbitten in the Karakum heat, in their own currency, depict their own portrait. Turkmenbashi Niyazov, having published his physiognomy in manats, can only compete with some kings-presidents from sultry African countries.

Even the Father of Nations, Generalissimo, the Greatest Sportsman and Friend of Children, Soso Dzhugashvili, did not paint himself on money. Framed Lenin. However, perhaps it’s not a matter of modesty, but of superstition: how can someone pick their eyes on a ruble, or paint on horns?

So what is ideal money? In my opinion, they should be completely transparent, made of some kind of flexible glass, without heraldic patterns, watermarks, without a denomination. Or they can be made mirrored - subject to all other conditions.

Money should be such that, being present, it is not present in the world. So that through them you can look or look at yourself.

Otherwise, they are not money at all, but wolf bunnies, deer and bullets, cabbage, past which only a lazy stork will not fly past, and crackling plywood sheets.

The immediate prerequisites for the emergence of money include:

transition from subsistence economy to production of goods and exchange of goods;

property segregation of producers of goods - owners of manufactured products.

Application of money:

determination of prices and sale of goods and services;

determining the cost of production and the amount of profit;

wages;

preparation and execution of budgets;

carrying out credit and settlement transactions;

carrying out transactions with securities;

saving and accumulating as a means;

assessment of the amount of resources involved in the production process (fixed and circulating assets), etc.

The necessity and essence of money as an economic category. Time and commodity characteristics of the essence of money

The essence of money is expressed in the unity of three properties: universal exchangeability, exchange value, materialization of universal working time.

The need for money is caused by commodity production. Commodity production involves consideration of general reasons that explain the need for commodity production and, consequently, the need for money in all economic formations. The common cause of the emergence of money is the social division of labor. Commodity production is possible without money, but money cannot exist without commodity production. Private reasons explain the need for money in a specific socio-economic formation. General and particular reasons do not exclude, but complement each other. Particular reasons: 1. The direct labor of each producer is private labor. Social recognition of labor is possible only through exchange, thus the social nature of labor is hidden, that is, money is needed to measure the costs of creating a product. 2. Heterogeneity of labor, which determines the distribution of material goods depending on the costs of a person. 3. The level of development of productive forces predetermines the distribution of material goods in terms of energy consumption. 4. Labor has not become the first vital necessity of every member of society, therefore, stimulation of labor costs is required. The most effective method is material incentives.

5. The presence of different forms of ownership of the means of production and products of labor. 6. Unconscious attitude of some members of society to the consumption of material goods. 7. The presence of an international division of labor, international economic relations, requiring an equivalent exchange of products of labor between countries.

The time value of money is one of the fundamental concepts of finance. The time value of money is based on the premise that everyone would prefer to receive a certain amount of money today rather than the same amount in the future, all other things being equal. As a result, when everyone deposits money in the bank, everyone demands (and earns) interest. Money received today is more valuable than money received in the future by the amount of interest that money can earn. If today's 90 rubles in a year will increase to 100 rubles, then these 100 rubles payable in a year are now worth 90 rubles.

Commodity money is a kind of money that is goods, that is, things that can be used directly, but which, along with the possibility of their consumption, act as an equivalent to the value of other goods.

Types of money: ideal, real, complete and inferior

Money is called full-value if the commodity from which it is made has the same value both in the sphere of circulation as money and in the sphere of accumulation as wealth. Having intrinsic value, high-grade money is independent neither from other types of wealth, nor from the market conditions in which it circulates. High-grade money includes all types of commodity money, gold and silver coins.

Inadequate money includes such money, the purchasing power of which exceeds the intrinsic value of the goods, which is the carrier of monetary relations. The purchasing power of this money is determined exclusively by market conditions, while the intrinsic value of inferior money has no effect on it. Defective money includes all types of post-gold money - paper and credit money.

Real money is the official currency of the country in which the system operates, cash or non-cash

Ideal money is Ideal money is a temporary concept introduced simply for a specific conversation. "What's behind the money."

Features of the functioning of paper and credit money.

Paper money is banknotes endowed with a compulsory exchange rate and issued by the state to cover its expenses (treasury notes). They have no independent cost (apart from the cost of printing them). Since their rate is set by the state, paper money is also called decree. This is unsecured cash. In developed countries, there is now no money issued by the treasury. Credit money circulates there. Credit money is a sign of value arising on the basis of credit. Credit money arises with the development of commodity production. Their appearance is associated with the function of money as a means of payment, where money is an obligation that must be repaid at a specified time. Credit money is representatives of money capital; it does not appear from circulation, but from production, from the circulation of capital. Unlike the functioning of paper money, the amount of credit money in circulation is determined not by the state's real gold and foreign exchange reserves, but by loans. Credit money is issued by both private legal entities and the state represented by the central bank. There are 3 main types of credit money: bill, banknote, check

Characteristics of the value of money. Understanding the role and significance of the currency, currency, quasi money and monetary surrogates.

COST OF MONEY - purchasing power of a monetary unit, the number of goods and services that can be purchased for a monetary unit at the prevailing level of market prices.

the value of money has an important consequence: whatever their quantity, the value of money is determined by the market price of gold. If there is a mechanism to stabilize this price, the value of money will thereby be stabilized.

Monetary unit is a statutory currency used to measure and express the prices of all goods and services, which is an element of the monetary system.

A currency symbol is a value sign, a form of cash, the value of the physical medium of which is significantly lower than the nominal (nominal) value indicated on it. First of all, these are defective coins and banknotes in which most modern currencies are issued

Quasi-money - non-cash money supply on time and savings deposits in commercial banks.

In other words, quasi-money is a monetary aggregate that characterizes deposits of the banking system that are not directly used as a means of payment. Quasi-money includes time deposits in local currency and all deposits in foreign currency.

Monetary surrogates are banknotes that are not provided for by law and are entered by individuals arbitrarily. The reason for their appearance (mainly) is the lack of official banknotes. Monetary surrogates are essentially substitutes for official money. They can replace a means of payment, but they cannot be a means of accumulation. Their appearance is associated with a tight monetary policy of the state, when the issue of cash stops to curb inflation. Monetary surrogates include:

Receipts, bills. Treasury obligations. Securities.

Coupons, certificates. Tax incentives.

Cashless money. Money as income. Money supply and its structure. The concepts of the monetary aggregate and the monetary base.

1) The peculiarities of non-cash monetary settlements are manifested in the fact that the payer and the recipient, transferring cash, take part in settlements in cash. In non-cash settlements, there are three participants: the payer, the recipient and the bank in which such settlements are carried out in the form of entries on the accounts of the payer and the recipient. In addition, participants in non-cash payments are in credit relations with the bank.

These relationships are manifested in the amounts of balances on the accounts of participants in such settlements. There are no such credit relations in cash circulation. Movements (transfers) of money belonging to one settlement participant in favor of another are made by means of entries on their accounts, as a result of which the bank's credit relations with the participants in such operations change. In other words, a credit operation is carried out here using money.

Thus, the turnover of cash is replaced by a credit operation. This emphasizes the importance of the expedient organization of lending processes for regulating the money supply, consisting of non-cash money and cash.

2) Income is the monetary value of the performance of the physical (or

a legal entity) as a subject of a market economy. In economic theory

by "income" we mean the amount of money that is regularly and legally received

at the direct disposal of a market entity.

Income is always represented by money. This means that the condition for it

receiving is effective participation in the economic life of society:

we live on a salary or at the expense of our own business

activities - in any case, we must do something useful for others

people. Only then will they give us part of what is at their disposal

money (just like we do not part with our money without acquiring

in return for something useful specifically for us).

Consequently, the very fact of receiving a monetary income is an objective

evidence of the person's participation in the economic life of society, and the size

income is an indicator of the scale of such participation. After all, money, perhaps

the only thing in the world that cannot be given to oneself: money can

get only from other people.

The money supply is the amount of all money offered for circulation within the framework of the national ec-ki. The money supply is structured by aggregates, which are divided according to the degree of liquidity of money, i.e. their ability to quickly implement.

Money supply page:

m0- cash in the hands of citizens and at the cash desks of enterprises

m1 = m0 + demand deposits (deposit accounts, electronic accounts)

m2 = m1 + time deposits

m3 = m2 + investments in securities

m4 = m3 + time deposits in foreign currency (all money supply in circulation)

MV = PQ M- mass of money, V-velocity of circulation

4) The monetary aggregate is a specific indicator of the money supply, which characterizes a certain set of its elements, depending on their liquidity. The number of aggregates that are used in the statistical practice of individual countries is not the same, which is explained by significant differences in the elemental composition of the money supply, in the spectrum of assets that are considered in national practice as money, in the tasks of using the money supply for regulatory purposes. So, in the United States, four aggregates are used to determine the mass of money, in England - five, in Germany - three.

5) MONETARY BASE is the sum of cash and funds of commercial banks deposited with the Central Bank as required reserves. With this money, the Central Bank fulfills its obligations to commercial banks and government agencies. This money, since it is deposited with the State Bank, is directly and directly controlled by it. Therefore, they are called "high performance" money.

The composition of the functions of money and their relationship.

The socio-economic content of money is revealed through their functions, the isolation and development of which reflects quantitative and qualitative changes in commodity circulation, behind which, in turn, is the development of social production. Each of the functions of money characterizes one of the sides of a complex set of social relations arising from the process of commodity exchange. The specificity of each function gives rise to special requirements for the money that performs these functions, which leads to the emergence and isolation of certain forms of money within these functions.

The theory of money distinguishes five functions of money:

1) measure of value;

2) a means of circulation;

3) a means of payment;

4) a means of accumulating or preserving values ​​and wealth;

5) world money.

Each of these functions separately and collectively reveal the essence of money and give them a characteristic. At the same time, from the essence of money as a universal equivalent, it becomes necessary for them to perform the above functions.

Cost measure functions

The function of the value measure is to express the values ​​of various goods through prices as similar (expressed in rubles, dollars or pounds), qualitatively homogeneous and quantitatively comparable values. The expression of values ​​through prices makes it possible to measure the value of individual goods with each other, to determine the exchange proportions of commodity exchange.

Dissimilar goods are equated and exchanged among themselves on the basis of price (coefficient of exchange, the value of these goods, expressed in the amount of money). The price of a commodity plays the same measuring role as in geometry, length for segments, in physics, mass for bodies. For measurements, you do not need to know thoroughly what space or mass is, it is enough to be able to compare the required value with the standard. The monetary unit is the standard for goods.

Features of the implementation of the measure of value with defective money

Defective money is paper and credit money, the purchasing power of which exceeds its intrinsic value. Purchasing power is determined solely by market conditions, and intrinsic value has no impact on it.

Defective money (paper and credit) does not measure, but commensurates the value of various goods.

Defective money backed by goods or foreign exchange metals (often referred to as credit money) is considered to be a representative of high-grade money and, having no value of its own, has a representative value. Representative value is a measure of the purchase value possessed by inferior secured money as a result of exchange for full value money.

Features of performing the functions of a medium of exchange and means of payment, the importance of performing these functions.

Instrument of payment. The money is used to register debts and pay them. This function acquires an independent significance for situations of unstable commodity prices. For example, a product was purchased on credit. The amount of debt is expressed in money, and not in the amount of purchased goods. Subsequent changes in the price of the goods no longer affect the amount of debt that must be paid in cash. This function is also performed by money in monetary relations with financial authorities. Money plays a similar role when it expresses any economic indicators. In the function of a means of payment, money is used to service credit relations, as well as when making payments that do not imply receiving any equivalent. In this function, money mediates not only the movement of goods, but also the movement of capital. Money in the means of payment function is used to:

repayment of debt obligations;

granting and repayment of loans;

payment of wages;

payment of taxes;

making utility payments.

Means of circulation. Money is used as an intermediary in the circulation of goods. For this function, the ease and speed with which money can be exchanged for any other commodity (liquidity indicator) are extremely important. When using money, a commodity producer gets the opportunity, for example, to sell his goods today, and buy raw materials only a day, a week, a month, etc. Moreover, he can sell his goods in one place, and buy the goods he needs in a completely different one. Thus, money as a medium of exchange overcomes temporal and spatial restrictions in exchange. The process of direct exchange of goods is divided into 2 acts: sale and purchase. First, a commodity is exchanged for money, and then the money is exchanged for another commodity. The change in the forms of value, as a result of which the exchange of products is carried out, assumes that the commodity is the source and destination of this process. At the same time, money acts as an intermediary, a means of circulation. Functioning as a medium of circulation, money facilitates the movement of goods from one commodity producer to another, bringing goods to the consumer, and thereby pushing them out of the sphere of circulation. The money itself, passing from one person to another, remains in the sphere of circulation, being in constant motion, continuously serving the exchange of goods.

Differences between the function of a means of payment and the function of a means of exchange.

1. Money as a means of payment completes the exchange process, repaying a debt obligation arising from the sale of goods on credit, while as a means of circulation, they are an intermediary in the exchange of goods.

2. In the function of a means of payment, the movement of money occurs relatively independently (detached) from the movement of goods, while in the function of a means of circulation, there is a parallel (opposite) movement of goods and money.

3. The function of a means of payment is performed by both cash and non-cash (deposit) money. (In this case, the predominant part of monetary payments occurs in non-cash form). The function of a medium of exchange is performed only by cash.

The function of a store of value: features and significance of the performance of this function. The unity of the functions of money as an expression of their essence.

A means of accumulation. Money accumulated but not used allows purchasing power to be transferred from the present to the future. The function of a means of accumulation is performed by money that is temporarily not involved in circulation. However, it should be borne in mind that the purchasing power of money depends on inflation.

The most famous store of value are:

investment coins

real estate - in the case of a confirmed and legally protected right of ownership

gold is the basis of the historical "gold standard"

precious stones and precious metals

art objects, such as works of art by renowned authors or antiques

stocks, bonds and other securities.

The fulfillment of the function of a means of accumulation by money is an important prerequisite for the development of credit relations, with the help of which it becomes possible to use temporarily free funds generated in various parts of the economy and among the population to provide loans to enterprises and organizations of other parts of the economy and individual citizens. The emerging and systematically renewed credit relations contribute to the rational use of the resources of the economy, the development of production and more complete satisfaction of the needs of the population. Despite the differences in the functions of money, there is an interconnection and unity between them, due to the essence of money. Thus, the function of a measure of value is realized in the functions of a medium of exchange and a means of payment. At the same time, money can alternately perform the functions of a medium of circulation and a means of payment, as well as serve as a means of accumulation. In turn, money savings can be used as a medium of circulation and as a means of payment.

The function of world money is manifested in the relationship between countries or between legal entities and individuals located in different countries. In such relationships, money is used to pay for purchased goods, when making credit and some other transactions. When various countries used high-grade money that had its own value, no serious complications arose with its use in international relations. Here, the money of individual countries could be used for settlements with other countries, based on the actual value of the monetary unit of each country.

Holy Island money of non-cash circulation as a criterion for determining the role of money. Features of the performance of its functions by money.

Non-cash money is funds on accounts in commercial and Central Bank, i.e. demand deposits (deposits) or term deposits.

Non-cash money turnover is a part of the money turnover in which the movement of funds is carried out in non-cash form in the order of transfer (transfer) of funds from the payer's bank account to the recipient's account, by offsetting mutual claims, as well as using other banking operations. The movement of funds in a non-cash form mediates the change of the commodity form of value to monetary, monetary - to commodity, as well as the processes of distribution and redistribution of funds by financial and credit methods.

The predominant development of non-cash money circulation in comparison with cash circulation is explained by both objective reasons and measures taken deliberately by the state in order to create a rational system of monetary payments and save social costs of circulation, since the speed of movement of money in non-cash money circulation is much higher than the speed of movement of money in cash circulation. In non-cash money circulation, money functions as a means of payment. This is determined by the fact that the transfers on the accounts are separated in time from the movement of material assets, which they mediate, the repayment of monetary obligations occurs after their occurrence. When offsetting mutual claims, only the unrecorded difference is reflected in bank accounts - the credit or debit balance. However, the entire amount of the credited funds, which is included in the volume of non-cash money turnover, is fully posted on the accounts opened for conducting offsets.

Non-cash money turnover is associated with credit relations that arise in the process of replacing real money with credit operations. In the absence of funds on the payer's account, non-cash money turnover can be carried out at the expense of a bank loan.

There is an inextricable relationship between cash and non-cash money. Money is constantly moving from the form of cash to the form of a deposit (deposit) in a commercial bank (non-cash) and vice versa. In this turnover, common money of one name circulates. The money in circulation sequentially performs three functions: a means of circulation, accumulation and payment. Those. being involved in economic circulation, money can accumulate. And if they settle on the hands, then they are depreciated. Features of non-cash payments are manifested in the following:

in cash settlements, the payer and the recipient, transferring cash, take part. There are three participants in non-cash payments: the payer, the recipient and the bank in which such payments are made in the form of entries on the accounts of the payer and the recipient;

participants in non-cash payments are in credit relations with the bank. These relationships are manifested in the amounts of balances on the accounts of participants in such settlements. There are no such credit relations in cash circulation;

transfers (transfers) of money belonging to one settlement participant in favor of another are made by means of entries on their accounts, as a result of which the bank's credit relations with participants in such operations change. In other words, a credit operation is carried out here with the help of money. Thus, the turnover of cash is replaced by a credit operation. This emphasizes the importance of the expedient organization of lending processes for regulating the money supply, consisting of non-cash money and cash.

13 The role of money in the reproduction process.

The reproduction process of the economy is a system of sequential change of 4 elements: production, distribution, exchange and consumption. The elements follow one after the other. In the production process, a certain product is created, which, being distributed, falls into the sphere of exchange. After the exchange, this product acquires a new owner and is consumed by him (used). Any use of the product is associated with the need to create conditions for the restoration of the potential to produce something again. For example, by consuming food, we reproduce our labor force in order to reintroduce it into the production process. Thus, this cycle is closed, and everything obtained in the consumption phase again enters the production process. Cash is a prerequisite for the full implementation of this cycle without unnecessary costs for its operation. For the production process, it is necessary to acquire the means of production, in the process of which money is actively used. In their absence, production would be a single process, since the cost of acquiring everything needed for this process would be too high. The next process - distribution - needs funds due to the need to accumulate available funds. In the absence of money, this function is performed through the use of goods, which limits both the possibility of accumulation and the possibility of distribution.

In general, the role of money can be expressed in the following list of the consequences of their use contributing to the reproductive process:

savings on transaction costs;

saving costs for measuring the value of goods and compiling exchange proportions;

communication between independent producers;

implementation of education, distribution and redistribution, the use of national income through the state budget, taxes and loans;

increasing people's interest in the development and increase of production efficiency, as well as saving the use of resources;

setting a price that allows the exchange of goods and services among themselves.

money in household circulation. Channels for the appearance of money in household circulation.

The issue of money is, firstly, a set of measures for the development, production and issue of banknotes in the form of treasury notes, banknotes and coins by the Treasury or the central (issuing) bank (cash issue), and secondly, the effect of increasing the amount money in circulation, created as a result of an increase in the speed and number of revolutions of the same banknotes by commercial banks (non-cash issue). The forms of emission of money are as follows: Deposit money is an increase by the central bank of its credit investments by issuing loans that increase account balances, that is, on deposits of credit institutions. Budget money emission appears as the issue of money to cover the deficit of the state budget, government spending through the acquisition by the central bank of government securities during their initial placement or placement on the secondary market. Banknote emission of money (emission of banknotes and coins) is directly carried out by central banks, treasury emission of money (emission of treasury notes and coins) - by treasuries with issuing rights. money is created through the expansion of loans from commercial banks due to an increase in their deposit base. This process is called the deposit issue, or the release of money into economic circulation by creating non-cash means of payment. personal money is primary and is carried out by crediting additionally issued money to correspondent accounts in credit institutions (banks) in the form of central bank loans or budgetary appropriations. The money turnover consists of separate channels of money movement between: 1. the central bank and commercial banks; 2. commercial banks; 3. enterprises and organizations; 4. banks and enterprises and organizations; 5. banks and population; 6. enterprises, organizations and population; 7. individuals; 8. banks and financial institutions for various purposes; 9. financial institutions for various purposes and the population. Money in economic turnover in market conditions has always existed and always exists. New money comes into circulation from banks that create them as a result of lending operations. That is why the credit character of the issue of money is one of the fundamental principles of the organization of the monetary system of the state. The concepts of “money issue” and “money issue” are not equivalent.

The release of money into circulation occurs constantly. Non-cash money is released into circulation when commercial banks lend to their customers. Cash is released into circulation when banks, in the process of carrying out cash transactions, issue them to customers from their operating cash desks. However, at the same time, customers repay bank loans and deposit cash at the operating cash desks of banks. At the same time, the amount of money in circulation may not increase.

Since the inception of bitcoin, the network has not ceased to argue about whether bitcoin can replace money, become an international currency, or at least become the world's Internet currency. Let's try to understand this issue and find out if Bitcoin or something similar can eventually come to replace cash.

According to the Medium website, Bitcoin is ideal money and here's why:

• Durable, since it was created forever and under the current conditions of human development, it is unlikely to be able to disappear.
• You can always carry it with you, no matter how much you have in your account. All you need to have with you are only private keys, which you can even remember if you want.
• Divisible, one bitcoin contains 100,000,000 satoshi
• The most important thing is that it is safe. It cannot be faked or hacked, and this has been proven many times over.
• Adapted for computer operations.

Bitcoin can be used as a store of value

The more people invest their money in bitcoin or the more often it is used in transactions, the higher its value. In addition, Bitcoin is not subject to inflation.

At the same time as bitcoin is becoming more expensive, it is becoming more and more attractive to investors and sellers. The latter, in turn, will willingly accept for payment a promising asset that inspires confidence and constantly adds value.

Why not other cryptocurrencies?

1. It is believed that none of the other cryptocurrencies is completely decentralized, which means that the security of such a cryptocurrency is at risk.

a) For example, Ethereum is subject to constant inflation and its goal is to become the fuel for decentralized applications. Therefore, even if successful, the price of ether is poorly predictable.

b) Ripple is not a cryptocurrency at all, but a centralized network of banks. Emission is controlled, any account can be frozen or completely blocked at any time, the security of such a network is at the lowest level in comparison with a decentralized network.

c) BCash is a Bitcoin hard fork that lacks its strengths. The network is controlled by Roger Ver and Craig Wright, who can make any changes they wish. There is also an increased risk of a 51% attack.

d) EOS is a weak and centralized network. It's not even a cryptocurrency in its usual sense.

e) Stellar is an analogue of Ripple, which means that all the same disadvantages of a centralized network are inherent in it.

f) Litecoin is used as a test network for bitcoin developments, since its code is completely written off from bitcoin. We can say that this is the very first Bitcoin hard fork.

g) Monero - despite the fact that the coin positions itself as anonymous, its development is too centralized.

h) IOTA - centralized like Stellar and Ripple, but it works much worse.

In addition to the voiced criteria, bitcoin has a lot of advantages that have not been fully disclosed. It is also not without its drawbacks, but they are constantly working on it. Bitcoin brings a new form of money to the world, it can be constantly improved in order to meet the ever-growing needs of civilization.

About 40 years ago, the world has already made an attempt to abandon paper money and convert everything to electronic form using credit and debit cards. This process is still ongoing. However, it was replaced by bitcoin and other cryptocurrencies. The history of money is the history of the constant evolution of the means of payment. At the moment, cryptocurrencies, like a person, are the pinnacle of the evolution of means of calculation, accumulation, investment.

Ideal money begins to develop from the time when the monetary-symbolic form of value, having reached the peak of its development, enters a downward trajectory, that is, at the stage of passing its content. This means, first of all, the separation of the banknote from real money, this process can be illustrated by four stages of its own movement.

I. The monetary-symbolic level is the beginning of the circulation of real money content. First, incomplete coins can enter circulation. Imbalance can be the result of various reasons: erasure, scuffing, sawing, etc. Secondly, non-weight coins continue to be full weight coins. Third, real money may not represent precious metals. As a result of this, only the bodily image of the monetary commodity is embodied in the coin more and more and less and less it represents real money.

II. Money-paper step. Here the banknote is finally separated from the real money it denotes. If real money circulates because it has value, then paper money represents value only because it circulates. The amount of real money in circulation depends on its value, however, the value represented by paper money itself depends on the amount of paper money. In this regard, the movement of paper money is carried out according to laws different from real money. It can be concluded that the second stage of denial occurs in paper money: both real money and the signs of real money are denied.

III. Paper credit step. At this stage, a new stage of denial of real money takes place, primarily because its function as a means of circulation is denied. In exchange for money, a promissory note is issued, which begins to circulate itself instead of money. An example of this is the printing of banknotes, which begin to function as a medium of circulation, that is, in fact, replace the function of money as a medium of circulation. This is followed by the highest stage of denial, when, firstly, the exchange of banknotes for gold stops (that is, money ceases to be credit) and, secondly, the movement of paper and credit money is combined into one whole.

IV. Design and sign level. It arises from the previous one, when not only real money is denied, but also their signs as a means of circulation. This stage is one more stage of denial of real money, because, firstly, payment tokens do not circulate, they are nominal, therefore, for such a sign, the material form is not so essential: a receipt, ticket, check, card, etc .; secondly, payment signs are a certificate for money, but not real money itself. In principle, the settlement mark can mean something else, for example, the amount of time worked, the service performed, etc. The settlement mark only through a series of mediations represents value, but also then only insofar as the value exists in these mediated connections.

The main thing is that in the form of calculation, the idealization of money approaches its extreme point: there is no longer real money in paper money; the calculated sign no longer reverts, therefore for him material being is an insignificant external form, which the calculated sign ultimately discards. The transition to the ideal form of value, ideal money, is under way.

For example, credit cards, debit cards can be referred to the number of settlement and symbolic forms. Credit cards are used for purchases that can be paid at a later date. They combine a payment and settlement and credit function, and are often used for travel, purchases of goods in a store. Credit cards are personalized and non-circulating. Debit cards are prepaid cards that enable their owners to deposit money into their account. They are a progressive, economical and convenient way of calculating.

The most common credit cards are Visa, Master Card, American Express, Dinner Club travel and entertainment cards.

In September 1995, 17 banks in Ukraine established a closed joint-stock company “Ukrkart”.

In 1996, seven large banks of Ukraine (Aval, Ukrsots-Bank, Privatbank, Ukreximbank, Ukrsibbank, Ukraine), with the help of the National Bank of Ukraine, became full members of the Visa international service association. At the beginning of 2000, 2/3 of all banks in Ukraine became members of this system.

Ideal money used in transactions between legal entities also includes:

Cashless payments.

Advised payments.

Phone payments.

Electronic payments (electronic money).

The practice of developing ideal money every day will give rise to new and new forms of their existence. However, no matter how many and whatever forms of ideal money arise, they will all unite, the fact that here money as reality disappears, only their ideal form remains. In ideal money, the real movement of not only money, but also its signs, is completely eliminated. At the same time, the dialectical process of the development of real money and the removal of their original content leads to the emergence of ideal money. But to the extent that the ideal form loses its content, it should be filled with a different content, since nature does not tolerate emptiness. But the study of the next stage after the ideal stage is a matter of the future.