Indispensable money. Non-exchangeable (credit) money When the system of non-exchangeable credit money was formed

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Fiat money - money whose denomination is higher than it market value; paper money that is not backed by anything other than a belief in their universal acceptance, such as banknotes and check deposits.

What lies at the heart of fiat money.

The fiat money system is currently used in the United States. This, however, does not mean that other types of monetary systems should not be studied.

Many financial institutions in the United States are allowed to issue fiat money in the form of checking accounts; we call such financial institutions depository institutions. Depositors can write checks to pay for purchases of goods and services.

The history of money is a movement from barter to commodity money, such as gold and silver coins, and then from commodity money to a commodity standard and then to fiat money.

As noted in Chapter 2, in a gold standard, the monetary base is the size of the gold reserve. In the fiat money system, however, gold loses its direct link with money. However, there is a monetary base, which is basically the amount of money issued by the government. In the United States, the monetary base includes cash in circulation plus reserves of depository institutions.

Currently, everyone in the United States accepts coins, Fed notes, and checks as payment for goods and services sold. The question arises: why do we willingly accept for payment that which has no value of its own. This means that the cost of payment rests on people's belief that they can exchange fiat money for goods and services.

Indispensable money is

The word fiduciary comes from the Latin fiducia, which means trust, faith. In other words, in terms of the paper money standard, money, be it in the form of cash or check deposits, is not convertible into a strictly defined amount of gold, silver, or other valuable commodity. People cannot exchange paper money in their wallets and wallets, or checks for a certain amount of any particular product; paper money itself is just scraps of paper. Coins have a value indicated on them, which is usually higher than the value of the metal enclosed in them. However, cash and check deposits are money because they are accepted for payment and their value is predictable.

Governments and central banks also issue fiat currency. There are still $ 350 million worth of such notes in circulation. The rest of the fiat money in use today is in the form of Federal Reserve notes. Chances are, all the paper cash in your wallet or purse is Fed banknotes.

There are two main types of money: commodity money and fiat money. In the system of commodity money, a real commodity is used as money. In this system, based on the commodity standard, both full-value money and representatives of full-value money are used as money. In contrast to this system, the fiduciary standard is at the heart of the fiduciary standard, according to which the value of money is related to people's belief that they will be accepted as payment for goods and services. Fictitious money can be issued by governments, central banks and / or depository institutions.

Since in the course of this evolution the waiting costs do not change, and the transaction costs decrease, then the minimum distribution costs also decrease. The time interval corresponding to the minimum distribution costs is also reduced. On the whole, evolution in the fiat money system leads both to a reduction in the cost of the exchange process and to a decrease in the time spent on it. Each individual and society as a whole wins. This reduction in costs explains the historically occurring transition to the system of fiat money, which exists at the present time.

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Lecture 6. Money and banking.

What is money? Money is something that can easily and without cost turns into any other goods, i.e. it is a highly liquid product. Modern economic theory, in contrast to earlier concepts and Marxist theory, distinguishes 3 functions of money:

1. Means of payment. Money is accepted as a means of payment, as it is assumed that this money will also be accepted by other people in subsequent payments. Money provides the convenience of exchanging one commodity for another, fulfilling the function of the universal equivalent of commodities, and makes it possible to abandon barter and the associated inconveniences.

2. Money is a means of accumulating wealth.

3. Are a counting unit or measure of the value of other goods.

Money as a national monetary unit must perform all three functions, only then money is money, financial system works efficiently and smoothly, the country's economy is stable.

Fisher's equation, discussed above, helps to calculate the required amount of money supply, but itself money supply consists of more than just cash. The payment function can be performed by three of its components:

1. Cash.

2. Funds on current deposits of the population and settlement accounts of enterprises.

3. Debt obligations. It is essential that these obligations are subject to all laws governing the securities market; the organization issuing them was registered and had the appropriate permission, otherwise, the promissory notes turn into monetary surrogates and are not money as such. If monetary surrogates, i.e. debt obligations issued by those who did not have the right to do so are squeezing real money out of the channels of monetary circulation, they say that the financial system is disorganized and the economy is unstable.

Money is debt obligations of the state or banks. These obligations successfully fulfill the functions of money as long as their purchasing power is relatively stable. The value of money is determined not by the amount of precious metals, as it was before, but by the amount of goods and services that can be bought with them. Since money is a debt obligation of the state, it, in the person of the Central Bank, is responsible for stability monetary unit... This responsibility presupposes effective control over the amount of money in circulation. If the amount of money grows, then the stability of commodity-money flows is destroyed, inflation begins and money loses its purchasing power. Having lost control over monetary instruments, we lose control over the economy as a whole, since money is the only lever of control over the market economy. In the absence of other ways of managing the economy, stability of money, the amount of money supply, etc. becomes extremely important.

It is in the market economy that monetary statistics appear, which makes it possible to measure the money supply using special indicators. In Russia, these statistics were adjusted in 1992, when, with the arrival of Gaidar and the beginning of his reforms, it became necessary to track the amount of money in circulation. There are several indicators of the money supply - monetary aggregates:

1. М0 - all cash.

2. M1 = M0 + current deposits of the population and settlement accounts of enterprises, demand deposits. Thus, the monetary aggregate M1 includes, in addition to government obligations, also the obligations of commercial banks.

3. M2 = M1 + small fixed-term deposits for a certain period of time.

4. М3 = М2 + large time deposits, characterized by less liquidity, since losses in case of violation of the terms of the deposit are very significant. Investments of this kind perform the function of accumulating wealth and savings.

Thus, the money supply is divided into aggregates according to the liquidity indicator, and, despite the fact that there are non-fundamental differences in the composition and number of monetary aggregates allocated in different countries, the division basis remains unchanged.

In the USSR, these statistics did not exist at all, and only cash was considered as the money supply, not taking into account the deposits of the population. In the event of an inflationary psychosis, people tried to withdraw money from their accounts, which led to a sharp increase in the money supply. To prevent this, restrictions were imposed on the size of a one-time withdrawal of money from the account, which led to huge queues at the Savings Banks and the further development of inflationary expectations. All this was due to the underestimation of the money supply, the growth of which at constant prices leads to a catastrophe.

Consider the need for the Central Bank to regulate commercial banks. Let's introduce the term "commercial bank balance" and consider it by example. The balance sheet of a commercial bank, like any balance sheet, consists of two parts - an asset and a liability. If a depositor deposits 100 rubles into his account, the balance of a commercial bank will look like this:

On the right side (liability) the bank's debt to the depositor is reflected, on the left side - the government's debt to the bank, since cash is a credit obligation of the state.

How are commercial banks regulated in Russia? Their activity is based on the so-called "partial reserves". The bank must have a reserve account with the Central Bank, and its size is determined by the reserve ratio established by the Central Bank. This rate is calculated as a share of the total amount of deposits. If in our example the reserve rate is set at 10%, then the bank needs to put 10 rubles on the reserve account. In fact, banks often have more than the required amount in the reserve account. There are three types of reserves

Mandatory reserves - the required funds established by the norm on the reserve account.
Actual reserves are the amount that actually lies on the account.
Surplus reserves - the difference between actual and required reserves.

Mandatory reserves are introduced to control the money supply, which is necessary for objective reasons - when issuing a loan, i.e. fulfillment of the main task of the bank, the money supply increases. Let's consider this in more detail with an example. With a reserve rate of 10%, the bank from the previous example places all the cash in a reserve account, thus receiving 90 rubles. excess reserves. With this money, he issues a loan to the enterprise, and as a result, we get a balance

At the time of issuing a loan, the money supply increases

As you can see, the money supply increased by 90 rubles. at the expense of current deposits. Moreover, this increase occurred without additional emission of money and, thus, commercial banks can increase the money supply. If commercial Bank received a deposit, then the size of the money supply would not change, only its structure would change. By issuing a loan, the bank expands the money supply, and the reserve rate here plays the role of a limiter. The bank cannot issue a loan in an amount exceeding its excess reserves, as this may lead to a violation of the law if the company uses a loan. Let's look at an example. Let the company transfer money from the account for the purchase of equipment.

Money is transferred from the company's account at the expense of reserves. If the originally issued loan exceeded the excess reserves, then the balance on the reserve account would be less than the norm.

The maximum credit that a commercial bank can issue is equal to the amount of excess reserves.

Consider a loan repayment case

The bank received cash to pay off the company's debt, and the money supply decreased by 90 rubles. by reducing cash in circulation.

The money supply at the time of loan repayment decreases

If the debt was repaid by a transfer from the current account, then

The money supply is reduced due to the size of the deposit, and the bank again has excess reserves in the amount of 9 rubles. for issuing a loan.

The examples we have considered related to one commercial bank that affects the money supply at the time of issuing a loan. The size of its impact is strictly limited by the amount of excess reserves. How does the network of banks affect the economy? In this case, the concept of a money multiplier appears - a multiple increase in the money supply.

Let's consider the mechanism of action of the money multiplier. Let the reserve rate R = 20%.

1. Bank A issues a loan for all excess reserves

2. The company transfers money to bank B

3. Bank B has excess reserves and issues a loan

4. The new loan is transferred to bank B

As a result, bank B also has surplus resources, etc.

Initial investment in a network of commercial banks 100 rubles. cash eventually increases the money supply manifold through the creation of checking accounts. The total increase in the money supply will be 400 rubles. Thus, excess reserves allow the entire banking system to create 400 rubles with the help of a system of loans. on current accounts. The money multiplier that occurs in this case shows how many times the increase in the money supply is greater than the initial increase in excess resources

The regulation of commercial banks, as you can see, is necessary, since the impact that they have on the money supply is very large. Banks can increase inflation, provoke investment crises and much more, but the existence of a market economy is impossible without them.

As a rule, such obligations are supported by securities, which are temporarily transferred to the disposal of a credit institution.

The history of development

The first mentions of credit funds date back to the XII century. At this time, the first promissory notes were drawn up in Italy. They were used as a way to transfer money and, in addition, were a means of payment.

In Russia, the bill of exchange was drawn up and approved in 1729. Lending developed intensively, and was only temporarily frozen after the October Revolution (from 1917 to 1921). Throughout the years of the existence of the Soviet regime, promissory notes were not used very actively. After Perestroika, when the spontaneous market gave freedom to individual entrepreneurs, credit money again began to be actively used and since then their popularity has been constantly growing.

Specific traits

"Money makes money" is one of the main signs developed economy... Each person can borrow funds for business development or for other purposes. The amount that the lender is willing to lend depends on several factors:

wage;
property to secure a loan;
credit history.

Classification

Promissory note

A document describing the financial obligations of one party to the other. Has the following features:

the document does not explain under what conditions the debt obligations arose;
the loan must be repaid within the specified period;
a bill of exchange can be used to pay for goods and services.

Bank note

A type of credit money, the issue and collateral of which is regulated by the banking system. An important difference between a banknote and a bill of exchange is that it can be used for an unlimited period of time. Peculiarities:

they are stable in circulation;
their value depends on the domestic public debt;
can be used to form financial capital.

Receipt

A document serving as a confirmation for the transfer of funds from a bank account into the hands of the bearer. The check circulation provides for the preparation of a bilateral agreement. Checks are:

registered - cashed only upon presentation of an identity card;
order - also cashed by a specific person, but can be deposited on an account or transferred to a third party;
bearer - funds are issued upon delivery to any recipient.

Deposit money

They differ from banknotes in that their value is expressed in the form of numerical entries in a bank account, and not in paper equivalent. Peculiarities:

account opening procedures are regulated by banks;
used for non-cash payments;
provided with a public guarantee.

Functions

At the expense of credit money loan capital is in constant motion. These funds are used for the following purposes:

expanding the scale of production;
an increase in the speed of "transferring" funds and, as a result, an improvement in the economic climate;
concentration of capital in the private sector to support individual entrepreneurs in a competitive environment.

Credit acts as a spontaneous regulator. Thanks to loans, there is a constant redistribution of funds between various industries. Most companies are forced to take out loans due to low capitalization, making up for the missing part of the budget.

2 NON-EXCHANGE MONEY AND THEIR FORMS

Indispensable (credit) money is called value signs, substitutes for natural (real) money. Non-exchangeable money includes paper, deposit and electronic money.

The nominal value of credit money is much higher than the value of the material from which it is made. For example, the highest value of ten paper rubles is precisely in their use as money, and not in any other capacity.

Unchangeable money appeared in connection with the performance of money as a means of payment, when, with the development of commodity-money relations, purchase and sale began to be carried out with payment by installments (on credit). Initially, the economic significance of fiat money was expressed:

In creating elasticity money turnover, the ability to expand and contract if necessary;

In saving cash (gold) money;

In the development of cashless payments.

The peculiarity of credit money is that its release into circulation is linked to the actual needs of the turnover. This presupposes the implementation of credit operations in connection with the real processes of production and sales of products. At the same time, the coordination of the volume of means of payment provided to borrowers is achieved with the actual need for turnover in money. This is the most important advantage of fiat money.

Since the 30s of the XX century. in the capitalist world, a system of non-exchangeable credit money, which by its nature is close to paper money, has taken root. Providing modern banknotes are mostly government securities: gold security and the exchange of banknotes for gold have been abolished in virtually all countries of the capitalist world. The exchange of the US dollar for gold for foreign central banks was discontinued on August 16, 1971.

Qualitative shifts in the monetary system determined its instability in the context of the general crisis of capitalism. For modern monetary system capitalism is characterized by the following features:

1) weakening of the connection with gold as a result of its displacement from internal and external circulation;

2) the domination of credit money irredeemable for gold, approaching paper money;

3) the issue of money in the manner of lending to the economy, the state and against the growth of official gold and foreign exchange reserves;

4) wide development of non-cash circulation and reduction of cash circulation;

5) state-monopoly regulation of money circulation;

6) chronic inflation.

2.1 Origin and nature of paper money

The appearance of paper money is objectively determined by the laws of metal circulation, the development of commodity exchange and the state's needs for funds to cover its expenses. The emergence of paper money was the result of a long historical process of the gradual separation of the nominal value of money from the real one. The possibility of such a separation was associated with the fleeting nature of the functioning of money as a medium of circulation.

In the process of circulation, full-value coins are gradually erased, losing part of their value. For twenty years of the first third of the XIX century. in Europe completely disappeared as a result of the erasure of 19 of the 380 million pounds. Art., i.e. 5% of all gold.

Countries that had gold circulation in the 80s. XIX century. annually lost from wearing out of coins at least 700-800 kg of pure gold.

Despite the fact that the actual metal content of the coins ceases to correspond to their denomination, worn-out coins continue to function properly as a medium of circulation, like brand new coins. Thus, the practice of circulating worn-out coins has created objective prerequisites for replacing high-grade money with their substitutes.

The next step on the centuries-old path to replacing full-fledged metallic money with their paper signs was the deliberate damage of coins by the state, i.e. the issuance of defective coins by the state with a low content of gold (silver) in them, and then minting of silver coins instead of gold, copper - instead of silver. Damage to coins brought to the state additional income.

The final stage was the release by the state (treasury) of paper money (in some countries they were called "paper coins") with a compulsory rate to cover their costs (at the beginning of the 13th century - in China, in the 4th century - in Japan, in the 17th century - in Sweden). Initially, the state, as a rule, exchanged paper money (treasury bills, bank notes) for gold (silver) at the official rate, which gave rise to their public acceptance. However, the constant increase in the state's needs for money forced it to issue more and more paper money and refuse to exchange it for a noble metal. Initially, paper money (along with deposit money) circulated in parallel with gold (silver), then completely replaced the latter. In the end, all connection between paper money and gold was lost, their general circulation was ensured exclusively by the power of the issuing state. Paper banknotes are not full-fledged money, but only their signs. This and the fact that paper money is more convenient in circulation explains the fact of the transition from metallic money to paper money. The possibility of such a transition lies in the function of money as a medium of circulation. The use of this opportunity for the practical implementation of issuing paper money into circulation presupposes the presence of two conditions: relatively developed commodity-money relations and the presence of trust in paper money.

They were first issued in the 7th century in China in high denomination bills to replace inconvenient high-grade copper money. And while the bills could be freely exchanged for full-value money, they were successfully circulated. Later, in the XIII century, paper money was issued in Persia, and in the XIV century - in Japan.

Relying on the strength of state power, it becomes possible to replace gold and silver in circulation, first within a given state, and then in world trade in signs of value. Initially, these tokens could at any time be exchanged for precious metals at face value, which allowed them to circulate in circulation as substitutes for precious metal money.

Paper money emerges and operates alongside gold money, gradually gaining strength and displacing gold money.

In the XII-XV centuries. For the convenience of trade, merchants create banks to replace cash payments through them with non-cash, more convenient and secure ones.

In pre-capitalist times, paper money existed only as long as it was freely exchanged for full value. With the rise of capitalism in the person of the bourgeois government, at last there was someone whom people could trust. Only capitalism with its developed credit system creates broad opportunities for the development of paper money.

Paper money (treasury bills) are paper tokens of value issued by the state (represented by the Treasury or the Ministry of Finance) to cover the budget deficit, not exchangeable for gold and endowed with a compulsory exchange rate.

It is necessary to pay attention to the fact that at present such money is practically not issued.

Paper money had two characteristics.

The first feature was that they had no intrinsic value of their own. They were inferior money - signs of value, had a representative value that determined their purchasing power.

The second feature is associated with the nature of circulation: paper money was unstable by nature, i.e. they tended to be depreciated. This was due to two reasons:

1) paper money was issued to cover the budget deficit, i.e. without taking into account (more precisely, in excess of the needs of turnover in money);

2) paper money was not exchanged for gold, and therefore the mechanism for withdrawing the surplus of paper money from circulation did not work, therefore, paper money issued in excess of the needs of commodity circulation "got stuck" in the circulation channels and was depreciated.

Thus, paper money is banknotes that cannot be exchanged for full value money, issued to cover a deficit. state budget... The difference between the nominal value of money issued and the cost of its issue (paper, printing costs) form the share premium of the treasury, which is an essential element of government revenues. The issue of paper money should be limited by the amount of high-grade money required for circulation in a given period, in other words, by the amount of gold money that they replace in circulation.

However, the appearance, and then the growth of the state budget deficit, caused an expansion of the issue of paper money, the amount of which depended on the state's need for financial resources. The issue (issue) of paper money is determined not by the need for commodity circulation, but by the deficit of the state budget. But no matter how much paper money the state issues, they will only represent the amount of full-value money that they replace in circulation. This is the essence of inflation, that is, a decrease in the purchasing power of paper money. But the depreciation of money can also occur for other reasons: a decline in confidence in the government, a passive balance of payments.

Paper money has two functions: a medium of circulation and a means of payment. The economic nature of paper money excludes the possibility of stability of paper money circulation, because their release is not regulated by the needs of commodity circulation, and there is no mechanism for automatic withdrawal of surplus paper money from circulation. As a result, paper money, stuck in circulation, regardless of the turnover, overwhelms the circulation channels and depreciates.

The depreciation of money is a decrease in the purchasing power of a monetary unit. Let us consider the mechanism of devaluation of paper money as a result of their issuance in excess of the needs of commodity circulation in money. For example, the demand for commodity circulation in money (at a given price level, the amount of goods sold and the velocity of money circulation) is $ 2,000 billion.If the nominal value of the paper money supply in circulation is $ 2,000 billion, then the representative value and purchasing power of the entire money supply will amount to 2,000 billion dollars, and the representative value and purchasing power of one currency is 1 dollar (2000: 2000), i.e. equal to its face value.

If the nominal value of the money supply is equal to $ 4,000 billion, then the representative value and, therefore, the purchasing power of the entire money supply will be $ 2,000 billion (since the demand for commodity circulation in money is $ 2,000 billion), and the representative value and purchasing power of each monetary unit will be below par - $ 0.5 (2000: 4000). In other words, the money supply will be exchanged for the same mass of commodities, but at new prices - twice as high. An increase in prices will lead to an increase in the demand for commodity circulation in money: it will rise to 4000 billion dollars. As a result, the amount of money in circulation will become equal to the demand in commodity circulation in money (at a new, higher price level).

The depreciation of money manifests itself in two forms:

In internal depreciation - in relation to goods on the domestic market, i.e. in the rise in prices for goods;

In external depreciation - in relation to foreign currency, i.e. in the decrease in the rate of the national currency.

Reasons for depreciation:

Excessive issuance of paper money by the state;

Decline in confidence in the issuer;

The unfavorable ratio of the country's exports and imports.

Inflation is the inevitable companion of paper money. It arises from the impossibility of spontaneous adaptation of paper money to the needs of trade and the use of emission by governments to cover the budget deficit.

Paper banknotes are of two types: state, issued by the treasury (treasury notes) and banks (bank notes or banknotes - bank notes). Treasury bills are usually called simply paper money, in contrast to banknotes, which are credit money by their nature. Historically, paper money appeared before credit money. Banknotes appear with the development of credit relations.

Monetary systems based on the circulation of fiat paper money currently exist in the overwhelming majority of countries. The obvious advantages of such systems, associated primarily with the convenience and economy of circulating money, contributed to their widespread distribution. It should be noted that this type of monetary system is not a kind of frozen formation. It is constantly changing, new forms of money appear, their role changes, other elements of the monetary system are transformed.

As soon as the intrinsic value of metallic money is separated from their denomination, irredeemable banknotes appear, the formation of fiduciary monetary systems begins.

Fiduciary(from lat.fides - faith) monetary systems- these are systems in which banknotes are not representatives of social material wealth, in particular, they are not redeemed for gold. They formed along with the transition from metal to paper money circulation. They can be built on a metal, paper, electronic basis. To date, 3 types of fiduciary monetary systems can be distinguished: 1) transitional, combining metal and paper circulation; 2) complete fiduciary standard; 3) electronic money systems.

The system of fiat money- This is a type of monetary system in which monetary carriers do not have a direct connection with metals. The monetary system, based on the emission of fiat currency, presupposes a high level of public confidence in this money. Trust is the key to the stability of monetary circulation, the completeness of the fulfillment of all their functions by national means of payment.

In the modern world, irredeemable banknotes are most often presented in the form of circulating credit obligations. This is due to the fact that the market nature of the organization national economies presupposes an adequate order of monetary circulation. In such a monetary system, a mandatory delineation of the functions of issuing money into circulation is assumed: cash banknotes are issued by the central bank of the country, and non-cash instruments of circulation are issued by the corporate sector of the economy. It should be borne in mind that non-cash money is issued primarily by commercial banks and other financial institutions licensed by the central bank, and other settlement participants can issue various settlement surrogates (which is typical for crisis economies).

Another feature of the turnover of credit obligations is the close connection between cash and non-cash money turnover. No legislative differences can be established between these parts of the money supply, while the state, and above all the central bank, must provide priority to settlements on a non-cash basis. This approach, combined with strong government control through monetary tax policy, allows you to stabilize money turnover in a market economy.

Since the 30s. monetary systems based on the circulation of non-exchangeable credit money begin to function in the world. This is primarily due to the operation of the general economic law of the economy of social labor. The evolution of monetary systems leads to the creation of more and more economical monetary systems, where the costs of monetary circulation are constantly decreasing, therefore, the costs of social labor are also decreasing.

Formed during and after the world economic crisis of 1929-1933. currency blocks ensured preservation in developing countries monetary systems dependent on the metropolises, which controlled the issuing institutions and their operations. The size of the issue was determined by the state of the balance of payments, and not by the needs of the economy. During and after the Second World War, on the basis of the pre-war currency blocs, currency zones were created, the characteristic features of which are: maintaining a fixed exchange rate in relation to the main currency; storage of national currencies in the banks of the hegemonic country; preferential procedure for foreign exchange settlements within the zone.

The existence of transitional fiduciary monetary systems in different countries of the world is limited by the framework of the XX century. Their historical limit is the beginning of the 1970s.

For transitional monetary systems, a characteristic phenomenon is becoming crap(French I "agio from Italian I" aggio). It represents the excess of the market price of the monetary metal, expressed in paper banknotes, of the face value of the paper banknotes representing the given amount of the monetary metal. It is usually calculated as a percentage. For example, in 1817 for 1 ruble. silver gave 3.84 kopecks. banknotes. In 1916, 10-ruble imperials were sold for 16-17 rubles. and, thus, the crap for gold was 60-70%.

As a result of the appearance of crap, a double system of prices for goods is formed: in paper signs and in metallic money.

In Russia (the Soviet Union), a complete fiduciary standard within the country actually took shape back in the 1930s. It was consolidated by the elimination of free trade in goods carried out by the All-Union Association "Torgsin"; the termination of the circulation of foreign currency from February 1, 1936

In the early 80s. in most small states, incl. insular, national monetary systems were created, ensuring the sustainability of which is essential condition normal development of national economies.

Expansion of international exchange, the formation of global and regional financial markets led to the emergence of special forms of money - international and regional, which act as a measure of value, a means of circulation and payment, accumulation in world and regional markets. In other words, international and regional money performs the same functions as national money, but at the international (supranational) level.

All monetary systems based on the circulation of credit banknotes are characterized by:

· Displacement of gold from both internal and external turnovers and its settling in gold reserves (mainly in banks); at the same time, gold still serves as a treasure;

· Issue of cash and non-cash banknotes on the basis of credit operations of banks;

· Development of non-cash money turnover and reduction of cash turnover (on average in the world economy, the ratio between cash and non-cash turnover is 1: 3);

· Creation and development of mechanisms for monetary regulation of monetary circulation by the state.

These circumstances bring their own specifics to the mechanism of functioning of modern monetary systems. This confirms that monetary systems, like money, are not frozen formations, but are in constant development.

Under the conditions of modern capitalism, banknotes retain a credit nature - they are intended for lending to the economy, the state, are issued against the growth of official gold and foreign exchange reserves, but obey the laws of paper money circulation.

It should be borne in mind that the state of the monetary system is determined by the processes of development of capitalist reproduction, which it affects, restraining or accelerating it. The influence of the monetary system on the economy increases with the development of state-monopoly capitalism.

There are two varieties of monetary systems, based on the circulation of credit banknotes: characteristic of a centralized, administrative-distributive system of the economy and characteristic of countries with market economies.

The monetary system of the administrative-distributive type of economy has the following characteristic features:

· Concentration of money circulation (both non-cash and cash) in a single state bank;

· Legislative differentiation of money turnover into non-cash and cash turnovers. At the same time, non-cash circulation, as a rule, serves the distribution of the means of production, and cash - the distribution of consumer goods and services;

· The obligation to keep the funds of enterprises in accounts with a state bank. Limiting (setting a maximum amount) of the balance of cash in the cash desks of enterprises;

· Rationing by the state of the expenses of enterprises from the proceeds they receive in cash;

· Direct directive planning of money turnover and its constituent elements as an integral part of the general system of state planning;

· Centralized directive management of the monetary system;

· Relative independence of non-cash and cash-money turnover;

Release of money into economic circulation in accordance with the implementation of the state plan economic development;

· Combination of trade and gold security of banknotes with the priority of trade;

The legislative establishment of the scale of prices and exchange rate national currency;

· Monopoly of the state bank to attract savings of the population.

This type of monetary system existed in the countries of the socialist camp before its collapse.

In most countries modern world used by the second type of monetary systems based on the circulation of credit banknotes... This type is characteristic of countries with market economies. The characteristic features of this type of monetary system are as follows:

· Decentralization of money turnover between different banks;

Separation of the function of issuing non-cash and cash banknotes between different links banking system... Cash is issued by central state banks, issue of non-cash money - commercial banks in different forms of ownership;

· Lack of legislative distinction between non-cash and cash payment transactions;

· Creation and development of the mechanism of state monetary regulation;

· Centralized management of the monetary system through the apparatus of the state central bank;

· Predictive planning of money turnover;

· Close relationship of non-cash and cash turnover with the priority of non-cash turnover;

Active control over in cash from the tax authorities;

· Endowing the Central Bank of the country with relative independence in relation to government decisions;

Securing banknotes with assets of the banking system (gold, precious metals, inventory items, securities);

· Issue of banknotes into economic circulation in accordance with state concepts of monetary policy;

· The system of market setting of the exchange rate based on the "basket" of currencies.

With the further strengthening of the globalization of economic life and the development of computerization, national money is increasingly being squeezed out of monetary circulation by collective currencies (for example, the euro).

Electronic money plays an increasingly important role in the circulation of money. Their distribution in the world has great advantages: it saves huge resources (printing money, their protection, transportation is excluded); contributes to the decriminalization of monetary relations (electronic money always acts as registered money); allows you to exercise total control over all monetary transactions, monitoring and preventing tax evasion, bribery, etc.

Currently, most of the money is represented not by tangible signs, but by entries in the settlement books of banks (existing in the form of electronic databases), called "cashless money" or "bank money". Bank money is more convenient than paper money, because allow you to make payments at a distance without transporting banknotes. At the same time, all transactions with money are recorded, which facilitates the maintenance and control of accounts. The money of each of the banks serves as a medium of circulation in all spheres of the economy, since at any time it can be converted into other bank money or banknotes of the central bank.

Modern market economy promotes the penetration of the capital of some developed countries into the national economy of others, often partner countries or competing countries. At the same time, close economic ties of the economic system enhance the interdependence of various sectors of the economy.

Indispensable (credit) money is called value signs, substitutes for natural (real) money. Non-exchangeable money includes paper, deposit and electronic money.

In creating the elasticity of money circulation, the ability to expand and contract if necessary;

In saving cash (gold) money;

In the development of cashless payments.

Since the 30s of the XX century. in the capitalist world, a system of non-exchangeable credit money, which by its nature is close to paper money, has taken root. The security of modern banknotes is mainly government securities: gold security and the exchange of banknotes for gold have been abolished in virtually all countries of the capitalist world. The exchange of the US dollar for gold for foreign central banks was discontinued on August 16, 1971.

Qualitative shifts in the monetary system determined its instability in the context of the general crisis of capitalism. The modern monetary system of capitalism is characterized by the following features:

1) weakening of the connection with gold as a result of its displacement from internal and external circulation;

2) the domination of credit money irredeemable for gold, approaching paper money;

3) the issue of money in the manner of lending to the economy, the state and against the growth of official gold and foreign exchange reserves;

4) wide development of non-cash circulation and reduction of cash circulation;

5) state-monopoly regulation of money circulation;

6) chronic inflation.

The origin and essence of paper money

Countries that had gold circulation in the 80s. XIX century. annually lost from wearing out of coins at least 700-800 kg of pure gold.

Paper money emerges and operates alongside gold money, gradually gaining strength and displacing gold money.

In the XII-XV centuries. For the convenience of trade, merchants create banks to replace cash payments through them with non-cash, more convenient and secure ones.

It is necessary to pay attention to the fact that at present such money is practically not issued.

Paper money had two characteristics.

The first feature was that they had no intrinsic value of their own. They were inferior money - signs of value, had a representative value that determined their purchasing power.

The second feature is associated with the nature of circulation: paper money was unstable by nature, i.e. they tended to be depreciated. This was due to two reasons:

1) paper money was issued to cover the budget deficit, i.e. without taking into account (more precisely, in excess of the needs of turnover in money);

Thus, paper money is banknotes that cannot be exchanged for full value money, issued to cover the state budget deficit. The difference between the nominal value of money issued and the cost of their issue (paper, printing costs) form the share premium of the treasury, which is an essential element of government revenues. The issue of paper money should be limited by the amount of full-value money required for circulation in a given period, in other words, by the amount of gold money that they replace in circulation.

The depreciation of money is a decrease in the purchasing power of a monetary unit. Let us consider the mechanism for the depreciation of paper money as a result of their issuance in excess of the needs of commodity circulation in money. For example, the demand for commodity circulation in money (at a given price level, the amount of goods sold and the velocity of money circulation) is $ 2,000 billion.If the nominal value of the paper money supply in circulation is $ 2,000 billion, then the representative value and purchasing power of the entire money supply will amount to 2,000 billion dollars, and the representative value and purchasing power of one currency is 1 dollar (2000: 2000), i.e. equal to its face value.

If the nominal value of the money supply is equal to $ 4,000 billion, then the representative value and, therefore, the purchasing power of the entire money supply will amount to $ 2,000 billion (since the demand for commodity circulation in money is $ 2,000 billion), and the representative value and purchasing power of each monetary unit will be below par - $ 0.5 (2000: 4000). In other words, the money supply will be exchanged for the same mass of goods, but at new prices - twice as high. An increase in prices will lead to an increase in the demand for commodity circulation in money: it will rise to 4000 billion dollars. As a result, the amount of money in circulation will become equal to the demand in commodity circulation in money (at a new, higher price level).

The depreciation of money manifests itself in two forms:

In internal depreciation - in relation to goods on the domestic market, i.e. in the rise in prices for goods;

In external depreciation - in relation to foreign currency, i.e. in a decrease in the exchange rate of the national currency.

Reasons for depreciation:

Excessive issuance of paper money by the state;

Decline in confidence in the issuer;

The unfavorable ratio of the country's exports and imports.

So, the essence of paper money lies in the fact that they act as signs of value issued by the state to cover the budget deficit, usually they cannot be exchanged for gold and are endowed by the state with a compulsory exchange rate.