Экономические науки/3.Финансовые отношения.

Zayats A.

Gorbatko V.

Vlasova I.A.

Donetsk National University of Economics and Trade Named after Mikhailo Tugan-Baranovsky

Essence and evolution of money in the international market

The most universal equivalent of money practically for all people B.C. was the cattle, and later metal (gold). From this point on made product for exchange becomes the goods.

Equivalents of money. At ancient Greeks – cattle. In Russia – fur (martens); India, China, Philippines – bowls. On island Java – huge stone wheels which transferred on poles, later in China – tea plates, salt. In the second half nineteenth centuries the standard has been established. The value applying for role of money, should possess following properties:

1) Uniformity;

2) Durability and keeping;

3) Divisibility in any proportion;

4) Compactness;

5) Cost constancy.

Therefore the role of money was originally fixed to gold, and then has passed to paper bank notes. Money – special kind of the goods which serves as universal equivalent for all other goods.

The essence of money finds expression in unity of functions carried out by them. The classical political economy allocates five functions of money: measure of value (values), currency, instrument of payment, means of accumulation (savings), and world money.

Function of money as measures of value consists in measurement of cost of the goods; it carry out ideal, i.e. mentally represented money. Money serves as material for expression of cost of all goods. Till 1933 1, 505 of gold was called as dollar. Currency in Russia to 1897 contained 0, 774234 of gold. Pound sterling meant in the beginning silver pound, and then silver was superseded by gold.

Currency, exchange – money is used at purchase, goods sale; serve as the intermediary in exchange are real money: gold, coins, paper money. Appointment of function of money as currencies – to be the intermediary at an exchange of the goods. Money carries out the given function fleetingly, passing from hand to hand.

As money as means of accumulation money leaves reference sphere, turning to the various values having ability to keep the consumer ability in the future (gold, securities, the real estate, currency etc.). Feature of money in this case consists that money carries out this function through "substitutes".

Function of money as instruments of payment is shown at goods sale on credit. At the transaction conclusion about goods sale on credit money appears ideally, i.e. as units, and at credit payment – as cash. At functioning of money as instruments of payment the requirement for cash turn of money resources decreases and at approach of terms of payment the quantity of active money increases.

Function of world money, as a rule, is fixed to the steadiest monetary unit. Evolution of world money repeats a way of national money: from metal to the credit.

The modern economic science concentrates attention to three cores, fundamental functions: a measure of value, a currency and accumulation means. There are two basic concepts of occurrence and essence of money: the rationalistic and historical concept. The rationalistic concept explains an origin of money as result of the agreement between the people; convinced those for improvement of terms of the exchange special tools are necessary. This idea about money as the contract undividedly dominated up to the end of 18 centuries. P.Samuelson defines money as artificial social convention. The American economist Dzh. K.Gelbrejt considers that fastening of monetary functions to precious metals and other subjects – an agreement product between people. Thus, money is a product of the agreement between people. According to the historical concept of an origin of money, they have arisen as result of development of social activities, an exchange, and commodity manufacture. Such concept is divided by neoclassical and Marxist schools.

The metal theory of money has appeared in a capital era of primitive accumulation of capital. They absolutes functions of money as treasures and as world money and on this basis identified money with precious metals. Were active opponents of damage of coins the state? Considered money as a thing, instead of as the social relation. Creator theories of money were the Roman and medieval lawyers. In its further development in J. Berkeley (England) and J. Stewart (Scotland). Criticizing representatives of the metal theory, they absolutes other functions of money – a currency and an instrument of payment. «Nationalists »declared money purely conventional signs, units which serve an exchange of the goods and are a government product. Founders of the quantitative theory of money are considered as J. Lock, S.Monteske, D.Jum, D.Rikardo. They have set aside a cost basis of money. Supporters of the quantitative theory of money consider that cost of monetary unit and level of the commodity prices are defined by quantity of an active money.

Monetary circulation is a continuous movement of the money which is carrying out functions of a currency and an instrument of payment, serving circulation the goods and services. Thus between money and the prices for the goods there is an inverse relationship: if the prices grow, consumer ability falls, and on the contrary.