demand for money from the population due to their important functions: they are a means of exchange and payment, unit of account and a store of value.In economics, they are in constant circulation, in the ongoing movement.Continuous change and their owners.Thus, cash flow - it is the movement of money, which mediates the turnover of goods and services.Without it the movement of financial capital and the sale of goods.
Turnover exists in multiple systems.They have developed historically and are fixed by the legislation of each state.
Turnover and its structure is made up of four components:
- monetary unit of the state, it expressed the value of goods and services (the dollar, the hryvnia, the euro, the ruble, etc.);
- system of paper money and credit, as well as small coins, which are legal payment for goods and services in cash;
- special bodies in the state, which regulate money circulation in the country;
- emission system of money, that is the order of their release into circulation, fixed by legislation.
kind of money that go into circulation, is also important.Depending on this cash flow is of two types:
- system of money and credit paper.In this case, they can not be exchanged for gold, and it is forced out of the turn.
- system of money metal when in the course of gold and (or) silver coins.They function as a full-fledged means of payment.Also, while the money can be exchanged for credit or metal bars.
Metal money has two systems of circulation, formed historically.It monometallism and bimetallism.The latter is based on the use of cash as gold and silver.It is typical for many countries in Western Europe since the 16th century.But at the end of the 19th century changed the conditions of production of silver, which led to its devaluation.Dramatically change the relationship between its value and the value of gold, which is gradually being squeezed out of circulation.At the same time silver coins was so much that they are no longer minted.As a result, as the money began to use only the gold, for which you can freely exchange money and credit paper.In place of bimetallism come monometallism.It existed in three varieties:
- Before World War acted gold standard, in which were in circulation gold coins.They could easily be exchanged for paper and credit money.
- gold bullion standard.It was introduced at the beginning of the First World War, France and England.Standard gold bullion had its price.It can be exchanged for money only after the presentation of the amount corresponding to that price.
- gold exchange standard.He appeared in the 20s of the 20th century in other countries.Slogans - a foreign currency that could be exchanged for gold.On slogans were allowed to change the bill.
monometallism The era ended with global economic crisis in 1929-1933.Gradually began to form the system of credit money, which is not peddling.It is characterized by the following features:
- withdrawal of gold from circulation;
- predominance of lending money;
- significantly advanced non-cash circulation;
- abolition of the gold content of the banknotes, the rejection of their exchange for gold;
- gain legislatively fixed order of release of money into circulation (emission) to provide loans to private entrepreneurs;
- state control of money circulation.
That is, in the modern world system of money circulation looks like a system of credit money, of paper that are not exchanged for gold, and small coins.There is a gradual transition from the symbolic to the money commodity and credit.
