Modern money, as well as notes that were in circulation long ago, there are certain conditional goods.That it is common for all equivalent, a measure of prices for the various goods and services.It is an essential part of the economy of each country and the world at large.The main functions of money express their nature as an economic category, their internal basis and content.
most important function they perform is their use as a measure of value.In this case, the price of money expressed absolutely all goods.However, it should be noted that comparable products do work that directly expended in their production.The cost of the product, expressed in money, called the price.
Money also serves as a medium of exchange.Thus, during the circulation of goods, the money must be present in reality.Handling production occurs on such a scheme: first carried out the sale of goods (T), that is, its transformation into money (D), which can then be spent on the purchase of necessary goods (T).In fact, this scheme is a commodity and monetary relations: T-M-C '.Thus, notes played the role of mediator and overcome various boundaries that are present in the case of exchange of goods for other goods.
Any money can act as a means of accumulation and savings.Since they are universal equivalent, the epitome of wealth, it is quite natural that it encourages people to their accumulation.This money is extracted from the commodity-money circulation.
ubiquity they received as a means of payment.They are used when there is a need for the purchase and sale of goods on credit, ie, by installments.In this case, there is not any counter-movement of goods and money, repayment of the loan (debt) - is the last step in the process of buying and selling.By performing this function, modern money is increasingly represented in non-cash form.
also another feature, which endowed money, is to use them as a means of purchase and payment.They serve as world money.They are used in the calculations of international balances.
Modern money can be divided into the following types:
- natural or commodity (in their capacity as isolated product that is endowed with the usefulness and value of: cattle, furs, jewelry);
- secured money (in this form (marks, certificates) can be exchanged for a certain amount of goods);
- fiatnye (implies a mismatch of their face value with the real, but they are at the state level are a means of payment: bank notes, bank money);
- lending money (mainly securities, through which specially decorated debt, and through which you can make purchases).
Modern money in the process of its evolution over the centuries have been studied and considered by various schools and their representatives, and therefore decided to allocate the following theory of money:
- metal (her followers saw the main function of money as a measure of value and opposed addingcoins in other metals);
- nominalist theory (it involves determining the value for money of their nominal value, and therefore deny their function as the universal equivalent and supported by means of a function of treatment);
- monetary theory (as it was believed that the market determines the purchasing power of assets and commodity prices, and the entire mass of the issued money should be in circulation);
- Keynesian theory (Keynes believed that with the level of income changes and the speed of movement of money);
- synthetic theory (combines elements of monetarism and Keynesianism, which should be based on well-built fiscal and monetary policy).
