money - an important link in all the relations of production.They, along with the product have a common origin of the essence, and the like.Currency is an inseparable part of the world market and at the same time opposes it.If the goods are used in circulation for a limited period of time, the essence of money is so important that without finances this sphere can not exist.
commodity-money relations
Money is a special kind of commodity, while gaining unique value.If you treat them detached, the essence of money and its function is that they are an intermediary in the exchange of market values.
The need for the existence of commodity-money relations (and hence concepts such as finance, credit, etc.) caused by the presence of various forms of ownership.Also of great importance is attached to strict accounting and control over the volume of work and consumption.
Full accounting and control many different types of concrete work is physically impossible due to its socio-economic heterogeneity, which manifests itself as follows:
1) physical and mental labor to a large extent different from each other.
2) skilled and unskilled work performance - is also the polar categories.
3) There is a correlation between harmful and easy labor.
Accounting and control information held by different types of concrete work to the homogeneous abstract concept.The essence of money to distribute products of labor, depending on its quality and quantity.In addition, they participate in the commodity exchange between the organizations and companies of different forms of ownership.
from the need to finance follows the essence of money and monetary circulation.They play the role of the mass equivalent of the commodity, which is used to express, measure and monitor social activities, organize the exchange of goods, distribution of products between the staff and perform financial incentives.
product is a unity between its cost and value for consumers.Therefore there is a need to conduct its accounting and in kind, and in the evaluation manifestation.
basic functions of money
In modern society, formed following the functions of money:
1) The essence of money in the modern world is that they are a tool for intensive monitoring of financial units.That is, the user supervises the manufacturer, the payer - on the supplier and on the contrary, the bank verifies the process of issuing and repayment of loans to customers, etc.
2) plays a key role in the organization of settlements in the economy (the need to maintain a balance between income and expenditure and achievements that first regularly exceeds a second).
3) is the main criterion for the distribution of the quality and quantity of work (with the exception of equalization, the use of a wide range of payment for work performed, stimulate employee productivity).
4) It is an integral component of commercial processes (each employee spends its money received to buy things that can help meet their needs).
5) The essence of money in the economy is in the performance of functions means of organizing the relationship between agriculture and cities, other forms of property.
6) contributes to the spread of various types of products the company.
totality of production humanity manifested in two forms: commodity and money.This provision is important in determining how this concept, and in the distribution of its components.Due to the components form a so-called compensation fund.Its main task is to cover the cost of production.Also on this basis it is formed by the national income, which includes savings, insurance reserves, administrative expenses, means of defense and socio-cultural activities.
Saving currency balance
What is money?To ensure the stability of the currency is not only gold, but also large quantities of goods at the disposal of the state.They contribute to the stabilization of the financial masses due to the fact that based on the particular social labor.
It is essential to maintain a balance between the amount of money in circulation, and goods that arrive on the shelves.This fact explains why the bills are issued only in case of real need for them.
Gold serves as a means for international purchases and sales, for state reserves of the precious metal have a special place in ensuring stability of the currency.Thanks to them, it is possible to raise the level of imports and lower, respectively, export.This method is used in order to expand trade within the country and to increase financial support for the currency.
How do I get the money?The lion's share to ensure the stability of the national finances falls on the foreign exchange reserves, which are invested by a foreign state in our country.
So, in short the functions of money are as follows:
1) Determination of the cost and the price scale.
2) The agent turnover.
3) Subject to savings and savings.
4) Global money.
Let us consider each of these points in more detail.
What is the measure of value
measure of value - a measure by which is determined, in fact, the price of the goods.It is an expression of the quality and quantity of work that was required for its manufacture.In practice, many different specific types of work, which is commensurate in terms of money.
labor materializes in commercial facilities, more precisely, its value is defined as the price of the product, but it is usually different from its value, as it is often rejected by her.
In order to increase the purchasing power of money, you need to spend a fall in prices.But it can serve as the emergence of profit shortfall.And they suffer the negative impact of increasing the purchasing power of the currency.This is another aspect, which reveals the essence of money, modern aspect which has many facets.
part of the requirements that apply to the price of products, contradict each other.To resolve this problem, you need to take the following measures:
- do increase the real incomes of the population;
- to minimize the consumption of goods, which is harmful;
- organize incentives on the purchase of products for segments of the population who are considered vulnerable.
measure of value is the basis for the control of the national monetary unit on a "money is no money."
Regulation
cost measures to reduce individual costs to the level of that need, which society needs, you need to take the following measures:
1) Right to plan current prices.
2) Adjust the cost price.
3) Ask an adequate size of the tariff.
4) Conduct control rates.
These steps will create incentives for businesses that they do cost reduction and started to raise labor productivity.
To hold of comparing the prices of goods, it is necessary to balance them within a single scale, which is defined as the weight of the gold that is used in a specific country in order to determine prices.This is another facet in which manifests the essence of money.
Another significant step to increase the scale of production - the implementation of the functionality of the treatment bills.This interaction takes place circulation of goods and finance.That is the currency serves as an intermediary participating in the exchange of products.This is one kind of commodity is exchanged for another.
essence of money is also in the fact that they are constantly in motion.They can not be removed from the process of market relations completely.While selling the products come and go, the currency remains in circulation and continue indefinitely to function.
as a means of circulation of money controlled by the user.He spends them only for the products that meet its requirements.After securing the next cycle of currency turnover is returned to the bank, but a certain part of it can be withdrawn from circulation in order to perform other functions.
money as means of payment
function of money as means of payment formed as a result of trade, that is, thanks to him, the currency gained the status of a medium of exchange.Finances are solvent at the time when the goods are sold without a payment for it at this very moment.On the basis of this form of problem commitments and claims that have long-term nature.
relationships that are based on the function of money as a medium of exchange, are fleeting.But the work of the currency as a means of payment is carried out in the course of long-term relationships, which, for example, belong to salaries, loan repayments, payment of taxes.On its basis the conditions that contribute to saving cash at the time of payment using cards when the recording material means replace the bills.That is, there is money, there is no money.
Finance as a means of accumulation and savings
its role as a means of accumulation and savings, money gives the ability to save the value in its mass form.In this scenario, it may at any time become part of the treatment like buying a means of payment.
When finances play a role a means of circulation and payment, they are a kind of substitute for gold, there are signs of value, a manifestation of what is money - national banknotes.
Accumulation of currencies cease to be an end in itself in cases where the act as a form of raising funds in the expansion of production.For businesses, they become profit fund for economic stimulation, balances on bank current accounts.
as a means of accumulating currency differs from the treatment facility that operates not as a fleeting equivalent form, but as a representative of, in fact, the cost of which represents it for a long period of time.Because it is important to determine whether the inflation of money to ensure their sustainability, to enable them to perform their tasks in the accumulation, which otherwise becomes meaningless.
World money
Due to the existence of a continuous development of trade relations between the two countries there was such a thing as a global finance.This is another essence of money.Money as money and money as capital are part of the global financial turnover.Within each country they operate in the form of characters, approved by law.At the same time they have both the ability to purchase and solvency power.
Regardless of their state money to live in a universal form of ingots of precious metals, that is expressed in the universal equivalent of commodities.In the history of international payments in order to maintain the national currency among former members of Comecon, it was decided to establish a financial exchange in the form of clearing.For its base chosen transferable ruble, having a gold content, but it does not exist.Its nominal value was slightly less than 1 gram of the precious metal, which is used to determine the price scale in the mutual world.
What is the cash flow
When, during the commodity-money relations is the process of buying and selling, there are payments and settlements.They also occur during the distribution of funds, which is the essence of money.The concept of cash turnover includes the collection of all payments.
In these circumstances, people and businesses communicate with each other by means of two market groups.People use the earned income for the purchase of consumer goods.Companies, in turn, has been selling its products to the people, as well as other organizations in order to get the revenue to carry out the further manufacturing processes.
Market Resources offers companies a variety of types of goods (material, energy, labor, natural) that are required for production.If we represent the interaction of resources and payments as clockwork, the first will move the exchange rate of the arrow, and the second - in the opposite direction.
Among the streams most important role belongs to the national (aggregate) product.It represents the total value of goods and services produced, which implies the essence of money and credit.And it includes the national income, which is formed of all the funds received by the population (including, it includes wages, rent, interest and profit).
In order to quantify the flows of goods, finance used.Figuratively speaking, the movement of goods - a pipe and circulating the money - it is a liquid that flows over them.National product takes the form of the rate of flow of the "fluid" and the amount of currency is expressed in its entirety.
If the circuit to align investment and savings, formed two ways to pass assets from objects that act as their master, to the market for products:
1) Costs are designed specifically for consumption.This is a straight path.
2) Funds are moved through savings, investment and financial markets - the so-called indirect way.
significant impact on the circulation of money and goods have intermediaries.Because they are part of the financial system, these people are doing a redirection of funds from lenders to borrowers.Often they use these financial resources are not in the state, and private interests.
cash management turnover
to undertake further analysis of how the cycle of products and income, include in the list of public sector purchases and loans that holds the country.
costs, which makes the population when paying taxes to the state budget, partly offset by payments to them for funds in the form of transfer payments.Without taking them into account, we obtain the amount of tax in its pure form.
When there is a budget deficit, the state covers its financial markets by borrowing.That is, it sells securities and financial intermediaries, and the general population.
If you reduce taxes, it will provide an incentive to increase savings and consumption, and this, in turn, have a positive impact on the growth of the national product.Increasing the size of government procurement as an incentive for him, as is raising the level of income from the sale of goods and services (in the event that the salary increases).
Among the tools of government influence on the circuit is monetary policy.Under it generally refers to the government's actions aimed at changing the amount of money in circulation.
model of money circulation is a closed economic system, which is not visible to the outside world.It will have a much more complex structure, if we add to it the elements of monetary relations, which are based on international communications: export and import of goods and services, loans and credits carried out between the two countries, the purchase and sale of financial assets on an international scale.
