The essence and types of the monetary system

Definition 1

The monetary system is a form of organization of monetary circulation in the state, which takes shape historically and is enshrined in legislation at the national level.

The type of the monetary system is determined in accordance with the forms of the monetary material:

  • the commodity-money system, formed at the early stages of the development of the commodity economy and construction;
  • metal money system, which can be different depending on the type of metal that acts as money. These systems can be monometallic (with the dominance of one metal, playing the role of a universal equivalent and dominating monetary circulation) and bimetallic (the role of money is played by 2 metals - gold and silver, monetary functions are assigned to them by Legislation);
  • fiduciary system, in which banknotes are not subject to exchange for gold (paper, credit, electronic signs).

The main types of monetary systems are:

  1. Metallic money circulation,
  2. Credit and paper money circulation.

System of paper and credit money

The monetary system based on paper and credit money is regulated, since the state is obliged to ensure the relative constancy of the issued banknotes. At the same time, it is customary to distinguish between paper money systems and a system of credit money, which cannot be exchanged for gold.

Monetary system of metallic circulation

This system is based on metallic money (gold, silver), performing all the functions that are inherent in money as universal equivalents (a measure of value, means of circulation and payment, means of accumulation). With the functioning of this system, banknotes that circulate simultaneously with metallic money can be exchanged for metallic money at any time. Metallic circulation is characterized by 2 types of monetary systems (bimetallism and monometallism).

Bimetallism is a monetary system, during the functioning of which the state legislates the role of money for two metals - gold and silver.

There were three types of bimetallism:

  • Parallel currency systems with a spontaneous ratio between gold and silver coins,
  • Dual currency systems, when the government determines the ratio,
  • Lame currency systems in which gold and silver coins do not function on equal terms.

Definition 2

Monometallism is a monetary system in which a single metal plays the role of a universal equivalent, while other signs of value (banknote, treasury note, coins) can also function in circulation, which can be exchanged for gold.

In accordance with the nature of the exchange of value signs for gold, it is customary to distinguish 3 varieties of gold monometallism in the form of a standard:

  1. Gold coin,
  2. Gold bullion,
  3. Zolotodevizny.

Elements of the monetary system

The monetary system consists of the following elements:

  1. monetary unit, which is a statutory currency that serves as a measure of expression of prices for products;
  2. types of money that are legal tender (cash and non-cash credit bank notes, paper money, change coins, etc.;
  3. money supply, which includes cash and non-cash amounts and other means of payment;
  4. the emission system, which is the procedure for issuing bank (treasury) notes by central banks and treasuries, as well as emission channels;
  5. monetary policy, which is a system of monetary instruments (money supply, reserve ratio, interest rate, loan terms, refinancing rate, etc.) and regulatory institutions (Central Bank, Ministry of Finance).

The monetary circulation of the country organized and regulated by state bodies is called the monetary system.

Monetary system- a historically established form of organization of monetary circulation, legally established by the state in each country.

Monetary systems were formed in the 16th - 17th centuries. in the context of the emergence of centralized states and their national commodity and financial markets. They have gone a long way of development, changing along with the evolutionary processes taking place in the economies of countries and regions.

It is customary to classify the monetary systems of individual states for various key criteria : by the type of money as a form of legal tender, by the role of the state in regulating monetary circulation, etc.

Depending on the type of money, the following types of monetary systems are distinguished:

1.commodity;

2. systems of metal circulation (monometallic and bimetallic);

3. fiduciary (actually paper and credit and paper, electronic).

In addition to these types of monetary systems, there are mixed and transitional varieties.

Commodity monetary systems

Commodity monetary systems are formed at the earliest stages of the development of the commodity economy and state building.

During this period, man and society borrow from nature not only the means of subsistence, but also the forms of money. Under the conditions of the domination of mining and gathering, mollusk shells, bird feathers, cocoa beans, etc. become money. The first large social division of labor leads to the fact that nomadic peoples create a monetary system on the basis of such a popular commodity as cattle (bulls, sheep, etc.). Agricultural peoples who have moved to a sedentary life build monetary systems using grain, furs, animal skins.

The development of methods of processing metals, an increase in their role in the economic life of society leads to a transition from commodity money systems to metal ones.

Metallic money systems

Monetary systems of metallic circulation are based on metallic money (gold, silver), which perform all the functions inherent in money as a universal equivalent (measures of value, means of circulation and payment, means of accumulation), and banknotes circulating simultaneously with metallic money can be at any time exchanged for metal money. Metal money systems are classified according to which metal plays the role of money. They are subdivided into monometallic and bimetallic (Fig. 8).

Figure 8. - Metallic money systems

1. Monometallism ... Monometallic monetary systems are called monetary systems in which one metal occupies a dominant position, serves as the main universal equivalent and dominates in monetary circulation. Developed metallic monetary systems were historically established on the basis of copper, silver, and gold.

Copper monometallism existed in Ancient Rome in the III-II century. BC. In the Russian Empire, copper coins were a monetary material for quite a long time, which caused significant problems with payments. For example, in 1748 Elizaveta Petrovna awarded M.V. Lomonosov for a congratulatory one 2000 rubles. The weight of the copper money was 1800 kg. An award in the form of sacks of copper money was delivered to M.V. Lomonosov on two carts, accompanied by armed guards.

Silver monometallism took shape in the Russian Empire in 1843 - 1852, in India - in 1852 - 1893. and Holland - in 1847 - 1875; in China it existed until 1935.

Historically, the transition from silver monometallism to gold took place in different countries over a long period of time and was characterized by the dominance of bimetallic monetary systems.

2. Bimetallism ... This is a monetary system in which the state legislates the role of a universal equivalent for two metals, usually gold and silver. Accordingly, the country's monetary circulation is based on the simultaneous use of gold and silver coins. The result is a dual system of commodity prices.

There are three types of bimetallism:

1) the system of parallel currency, which is characterized by the fact that the price ratio between gold and silver coins develops spontaneously on the basis of the market value of monetary metals - gold and silver;

2) a dual currency system, characterized in that the parity between the value of gold and silver is established by the state; minting of coins, their acceptance when making acts of purchase and sale are carried out in accordance with the legalized ratio;

3) the system of "lame" currency, which operates when the state refuses to mint coins from any monetary metal, but at the same time gold and silver coins are in circulation.

In European countries, a fixed parity of gold and silver in a ratio of 1: 15.5 (one weight unit of gold was equal to fifteen and a half units of silver) was introduced in 1803, but with the spontaneous fluctuations of market prices for gold and silver, one of the metals was estimated to be lower its actual market value, the other is higher.

The existence of bimetallic monetary systems has historically been associated with significant amounts of mined silver in America and Europe. However, the equal circulation of gold and silver is contrary to the very nature of money as the only equivalent commodity. Despite the formal legislatively supported equality of gold and silver, one metal actually played a major role, the other a subordinate one.

The fragility of bimetallic systems caused the transition to gold monometallism.

3. Golden monometallism ... This most perfect metal system was introduced: in Great Britain - in 1816, Germany - in 1871 - 1873, France, Belgium, Sweden, Norway, Greece - in 1873 - 1874, Holland - in 1875, Austria - in 1892, the Russian Empire and Japan - in 1897, the USA - in 1900.

The wide and fairly rapid spread of the gold standard was due to the formation of the world market and the sharp devaluation of silver as a result of its demonetization in a number of countries.

In the Russian Empire, preparations were made for the introduction of the gold standard for a long time and thoroughly for two decades. The gold ruble was not and could not be introduced "suddenly", imperceptibly and smuggled, by one person, no matter how high a post he may occupy. In fact, preparatory measures for the reform began to be carried out under the finance ministers M.Kh. Reiterne and S.A. Warm, were continued under N.Kh. Bunge and IA. Vyshegradsky, completed under S.Yu. Witte.

It is not enough to conceive a reform in the ministerial cabinet; it must be supported by other coordinated actions, in particular by the State Bank.

The introduction of gold monometallism in all countries was caused by:

1. elimination of the state budget deficit;

2. gradual build-up of gold reserves in the country;

3. liberalization of the sale and purchase of gold;

4. stabilization monetary reform.

Monometallic monetary systems always include full-value coins determined by the type of metal, and defective money ... For example, with gold monometallism, full-value coins include gold ones, inferior ones - silver and copper ones, as well as paper and credit money.

Historically, there were three types of gold monometallism (gold standard): gold coin, gold bullion, gold exchange.

For gold coin standard free circulation of gold coins is characteristic. Under these conditions, gold performs all the functions of money. The minting of full-value gold coins takes place with a fixed gold content of the monetary unit. The emission centers of the states are associated with the gold reserve.

Since there is a free spontaneous flow of gold into circulation from the form of treasure when the need for money expands, an equilibrium state of the monetary system is maintained.

Gold is freely imported and exported from the country, which ensures its functioning as world money. At the same time, the stability of the national currency exchange rate is guaranteed.

The gold coin standard does not exclude the circulation of defective money. At the same time, the latter are unlimitedly exchanged for gold at face value.

The gold coin standard reached its highest distribution in the world at the end of the XIV - the beginning of the XX century. With the outbreak of the First World War, the gold coin standard system was undermined. In all countries that participated in the war, with the exception of the United States, the exchange of banknotes for gold stopped, its free export was prohibited. To finance military spending, paper money was widely used.

After the end of the First World War and international military intervention in Russia, stabilization monetary reforms were carried out in many states during the economic recovery. There was a transition to the gold bullion and gold exchange standard, but not a single country in the world was able to fully restore the gold coin standard. It was replaced by the gold bullion standard.

The gold bullion standard was used in countries with significant gold reserves (France, Great Britain). Its characteristic feature was that banknotes, albeit with significant restrictions, were subject to exchange not for gold coins, but for gold bullion. For example, in Great Britain, to obtain a standard bar weighing 12.4 kg, it was required to present banknotes in the amount of 1,700 pounds. Art., in France - at least 215 thousand francs. for an ingot of 12.7 kg.

This approach contributed to the concentration of gold reserves in state-owned central banks of issue.

The gold bullion standard was in effect before the world economic crisis that began in 1929. Its consequence was the temporary widespread abolition of the gold standard (in Great Britain in 1931, the USA in 1933, France in 1936). The system of fiat money began to take hold.

Gold exchange standard was introduced in countries that did not have sufficient gold reserves and did not have access to gold mining. These countries included, for example, Germany, Norway, Austria, Denmark. It is characterized by the exchange of banknotes not for gold, but for the currency of those countries, which, in turn, could be converted into gold.

After World War II, an interstate gold exchange standard based on the Bretton Woods system of agreements was maintained for a long period of time. The countries that signed them have fixed the rates of their national currencies in dollars or in gold. The dollar was recognized as the main world currency unit, and its rate for a long time was fixed at $ 35 per 1 troy ounce of gold (31.5035 g).

The benefits of the gold standard included:

1) stability of currencies, which favored the growth and development of international trade;

2) the reliability of currency and financial forecasts.

disadvantages associated with the dependence of the money supply on mining, gold, the presence of obstacles to the conduct of an independent monetary policy aimed at solving the internal problems of the country.

In 1971, the United States stopped exchanging dollars for gold, which meant the end of the Wretton Woods system. It was replaced by the Jamaican International Monetary System, based on an agreement concluded in January 1976 in Kingston (Jamaica, Indonesia.) And entered into force in April 1978. Its essence consists in the abolition of the gold content of monetary units, in the universal recognition of the rejection of the gold standard and introduction of floating exchange rates; gold was excluded from the calculations of the International Monetary Fund and its members. Thus, the Jamaican Monetary System legally secured demonetization of gold .

The international gold standard ensured the stability of monetary circulation both within individual countries and the stability of the world monetary system for several decades preceding the First World War.

Fiduciary monetary systems

After the world monetary and financial crisis of 1997 - 1998. the question of creating a new world monetary and financial system is raised, taking into account the fact that in all countries of the world the fiduciary standard is dominant (from lat. fides- faith).

Fiduciary monetary systems- these are systems in which banknotes are not representatives of social material wealth, in particular, they are not exchanged for gold. They formed along with the transition from metal to paper money circulation.

As soon as the intrinsic value of metallic money is separated from their denomination, irredeemable banknotes appear, the formation of fiduciary monetary systems begins. They can be built on a metal, paper, electronic basis.

To date, three types of fiduciary monetary systems can be distinguished:

1. transitional, combining metal and paper handling;

2. complete fiduciary standard;

3. electronic money systems.

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 ... 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. Usually it is calculated as a percentage. For example, in 1817 for 1 ruble. silver gave 3.34 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 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" (a store that bought up precious metals and sold food and industrial goods to the population of the USSR for them and for foreign currency), and the cessation of foreign exchange from February 1, 1936.

All paper-credit systems are united by the following common properties:

1. there is a crowding out of gold from internal and external money turnover; gold, still performing the function of a treasure, accumulates in the gold reserves of banks;

2. the state takes over the regulation of monetary circulation;

3. lending operations of banks are the basis for issuing cash and non-cash money;

4. the ratio of the proportion of cash and non-cash turnover changes towards a decrease in the share of cash.

Since the 1930s. 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.

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

1. displacement of gold from both internal and external turnovers and its settling in gold reserves (mainly in banks); while gold still serves as a treasure;

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

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

4. creation and development of mechanisms for monetary regulation of monetary circulation by the state.

Varieties of credit monetary systems

There are two types of monetary systems based on the circulation of credit banknotes. The first type is characteristic of the administrative-distributive system of the economy. This type of monetary system existed in the countries of the socialist camp before its collapse.

In most countries of the modern world, the second type of monetary systems is used, which is characteristic of countries with market economies. It has the following characteristics:

1. decentralization of money circulation between different banks;

2. division of the function of issuing non-cash and cash banknotes between different parts of the banking system; the issuance of cash is carried out by central state banks, non-cash money is issued by commercial banks of various forms of ownership;

3. the lack of a legislative distinction between non-cash and cash payment transactions;

4. creation and development of the mechanism of state monetary regulation;

5. centralized management of the monetary system through the apparatus of the state central bank;

6. predictive planning of cash flow;

7. close relationship of non-cash and cash turnover with the priority of non-cash turnover;

8. active control over funds by the tax authorities;

9. endowing the central bank of the country with relative independence in relation to the decisions of the government;

10. Provision of banknotes with assets of the banking system (gold, precious metals, inventory, securities);

11. issue of banknotes into economic circulation in accordance with state concepts of monetary policy;

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

Like any system, the country's developed monetary system consists of a number of elements.

1. Currency unit - a measure of money adopted in the country for a unit.

2. Price scale - the weight amount of the monetary metal accepted in the country as a monetary unit and its constituent parts.

3. Procedure for securing banknotes - characteristics of the species and the basic rules for their provision.

4. Emission system - regulations for the issue and withdrawal of banknotes from circulation.

5. Money supply structure in circulation. It includes a number of parameters: the ratio between cash and impersonal money, between the volumes of issued notes of different denominations. The convenience of settlements depends on the structure of the money supply.

6. Money shape - the exchange value embodied in a certain type of universal equivalent, which is able to ensure the stability of the circulation of goods.

7. Forecast planning procedure - determines the goals and objectives of forecast planning, organizations and institutions that draw up plans, the system of the forecast money circulation plans themselves, the methodology for their compilation and the set of calculated parameters and indicators.

8. Monetary regulation mechanism - it, firstly, is a set of methods, methods, instruments of state influence on the monetary sphere of the economy, secondly, it solves certain problems, fourthly, it includes objects and institutions of monetary regulation, thirdly, the rights, duties and responsibilities of the bodies implementing it.

9. The procedure for establishing the exchange rate - a set of rules for establishing the rate of the national currency and the procedure for exchanging the national currency for foreign. Usually, the procedure for setting the exchange rate is the prerogative of the country's central bank, which is responsible for maintaining stable monetary circulation. Information about the exchange rate of the national currency for a specific date is published in official periodicals.

10. The order of cash discipline in the national economy - includes general rules for the execution of cash settlements carried out through cash desks, and the principles of ensuring control over them. The Regulation establishes the forms of primary cash documents and reporting forms that all business entities must use when organizing cash turnover. The primary control over the observance of the order of cash discipline is assigned to the banks that provide cash services to business entities.

11. Institutions of the monetary system - state and non-state institutions that regulate money circulation.

Principles of the organization of the monetary system

For the normal functioning of the monetary system must be organized in accordance with certain rules established by the state, i.e. fundamental principles .

Let's consider some of the principles by which a modern market-type monetary system is built.

1. The principle of centralized management of the monetary system ... This; the principle also exists in the first type of monetary system, inherent in the administrative-distributive model of the economy, but there management is carried out with the help of directive acts of the government, which are binding on all state banks and their branches in all regions of different countries.

Management of monetary systems in a market model of the economy is characterized by the fact that it is not administrative methods of management that come to the fore (although they do exist), but economic ones, when the state, through the apparatus of central banks, imposes conditions on the markets that force banks, financial institutions and other legal entities make decisions necessary for the state.

2. The principle of predictive planning of cash flow ... It means that both centralized and decentralized plans of money circulation and its constituent parts are prepared not as directive plans that are binding on specific bodies responsible for their implementation, but as forecasts, i.e. landmarks to strive for. An exception is a financial plan such as the state budget. For any type of monetary system, it remains a directive plan, for the implementation of which the government and, as a rule, the country's finance ministry are responsible.

3. The principle of stability and elasticity of money circulation ... The monetary system should be organized in such a way as to prevent inflation, on the one hand, and, on the other, to expand money circulation if the economy's needs for tender funds increase, and to narrow them if they decrease.

4. The principle of the credit character of the issue of money ... In accordance with this principle, the emergence of new banknotes (non-cash and cash) in economic circulation is possible only as a result of banks conducting credit operations. Banknotes from other sources, including the treasuries of countries, should not come into circulation.

5. The principle of security of banknotes issued into circulation ... In the conditions of a market economy model, banknotes are secured by commodity and material assets in the assets of banks, gold and other precious metals, freely convertible currency, securities and other debt obligations.

6. The principle of the central bank's insubordination to the government and its accountability to the country's parliament ... It is connected with the fact that maintaining the stability of monetary circulation and combating inflation are the priority tasks of the central bank. If this principle did not exist, there would always be a threat that the government would begin to “scoop out” the funds of the central bank to solve the tasks facing it, and thus the stability of the money circulation would be disrupted.

At the same time, the central bank may pursue policies that run counter to the current objectives of the state, so it must systematically report to the country's parliament, which acts as an arbiter in the event of disagreements between the central bank and the government.

7. The principle of providing the government with funds only by way of lending ... Usually in the legislation of countries with market economies there is a provision stating that the central bank should not finance the government, but provide funds to it only by way of lending against certain collateral (real estate, commodities belonging to the state, government securities, other securities, owned by the state, federation or subjects of the federation). The application of this principle allows not to involve money in the permanent coverage of the deficit of federal and local budgets and thereby not give an incentive to the development of the inflationary process, and also forces the government to seek other sources of budget revenues to cover federal and local expenses.

8. The principle of the integrated use of monetary regulation instruments ... Its essence lies in the fact that the central bank should not be limited to any one instrument of monetary regulation to maintain the stability of monetary circulation, but use a set of these instruments, otherwise the desired effect will not be achieved.

9. The principle of supervision and control over money circulation ... The state through the banking, financial system, tax authorities must ensure constant control over both the entire money turnover in general and over individual cash flows in the economy. In addition, the object of control is the observance by the subjects of monetary relations of the basic principles of organizing both cash and non-cash turnover.

10. The principle of functioning exclusively of the national currency on the territory of the country ... The country's legislation provides for payments for goods and services within the country exclusively in national currency. This does not mean that the population cannot freely exchange the national currency on the territory of the country for the currencies of other countries, but it is allowed to use such currency received during the exchange only for payments abroad.

Monetary system Is a form of organization of monetary circulation in the country, which has developed historically, enshrined and regulated by national legislation. Its integral part is the national monetary system, which at the same time is relatively independent.

Monetary systems were formed in Europe in the 16-17 centuries. during the period of strengthening of state power and the formation of national markets, although some of their elements appeared in an earlier period.

The objective need for a unified, stable and elastic monetary system was caused by feudal fragmentation, including in the coin business, which hindered the formation of a national market; commodity-money relations of the period of capitalism and free competition, which required the stability of the monetary system, the relative constancy of the value of the monetary unit.

Depending on the form in which money functions: as a commodity - a universal equivalent or as a measure of value, two types of monetary systems are distinguished:

· Systems of metallic circulation, in which the money commodity (precious metals) directly circulates and performs all the functions of money, and credit money is exchanged for metal;

· Systems of circulation of banknotes, when gold and silver are ousted from circulation by non-exchangeable credit and paper money.

In metal circulation, depending on the metal, which in a given country is accepted as a universal equivalent, and the base of monetary circulation, bimetallism and monometallism are distinguished.


Monometallism is a monetary system in which gold (or silver) plays the role of a universal equivalent.

Types of monometallism:

1.silver;

2.gold:

· Gold coin;

· Gold bullion;

· Gold and foreign exchange.

Gold coin standard - a monetary system, within which cash can be freely and unlimitedly exchanged for gold at par.

Gold bullion standard - a monetary system, characterized by the fact that there are no gold coins in circulation, and the exchange of banknotes is made for gold bars.

Gold and foreign exchange (gold exchange) standard - a monetary system in which there is no circulation of gold coins, and the exchange of banknotes is made for the currency of countries with a gold bullion standard.

Bimetallism - a monetary system, in which the role of a universal equivalent is assigned to two noble metals (usually gold and silver), free minting of coins from both metals and their unlimited circulation are provided.

Types of bimetallism :

· Parallel currency system;



· Dual currency system;

· The system of "lame" currency.

Parallel currency system - a type of bimetallic monetary system, in which the ratio between gold and silver coins was established spontaneously, depending on the market price of the metal.

Dual currency system - a type of bimetallic monetary system, in which the state fixed the ratio between metals.

Lame Currency System - a type of bimetallic monetary system in which gold and silver coins were legal tender, but not on equal terms.

Features of modern monetary systems :

· Cancellation of fixing the gold content of national currencies;

· Cancellation of the exchange of credit money for gold in any form;

· The transition to the circulation of credit money that cannot be exchanged for gold, which can degenerate (if the law of banknote circulation is violated) into paper money;

· The release of money into circulation is carried out in the manner of lending to the economy;

· Prevalence of non-cash money circulation;

· Strengthening of state regulation of money circulation.

Like any complex system, the monetary system consists of a number of elements. Among them, the following are distinguished:

Elements of the monetary system :

  1. principles of organization of the monetary system
  2. monetary unit as a unit of the monetary account required to express prices;
  3. types of money and banknotes in circulation and legal tender;
  4. scale of prices,
  5. the emission system and the nature of the security of banknotes issued into circulation;
  6. methods and analysis of the regulation of monetary circulation ( state apparatus responsible for regulating money circulation)

The principles of the organization of the system are the fundamental element of the monetary system. They mean the rules according to which the state organizes this monetary system. There are the following principles of the organization of the monetary system:

  1. Principle centralized management the monetary system is characteristic of the administrative-distributive model of the economy. It is implemented through government directives, which are mandatory for all state banks and their branches.
  2. Principle predictive planning of cash flow means that both centralized and decentralized plans of money circulation and its constituent parts are prepared not as directive plans that are binding on the bodies responsible for their implementation, but as forecasts, that is, benchmarks to strive for. The exception is the state budget, which for any type of monetary system remains a directive plan.
  3. Principle stability and elasticity of money circulation lies in the fact that the monetary system should be organized in such a way as to prevent inflation, on the one hand, and, on the other, to expand money turnover if the economy's needs for monetary funds increase, and to narrow them if these needs decrease.
  4. Principle credit character of the issue of money - the emergence of new banknotes (non-cash and cash) in economic circulation is possible only as a result of banks conducting credit operations. Banknotes should not come into circulation from other sources, including the treasuries of countries.
  5. Principle security of banknotes issued into circulation - in a market economy, banknotes are secured by commodity and material assets in the assets of banks, gold and other precious metals, freely convertible currency, securities and other debt obligations.
  6. Principle the Central Bank's insubordination to the Government and its accountability to the country's parliament - to eliminate the threat of spending the funds of the Central Bank by the national Government to solve its problems, which can disrupt the stability of monetary circulation. But the Central Bank can also pursue a policy that contradicts the current tasks of the state, so it systematically reports to the country's parliament.
  7. Principle providing the government with funds only by way of lending - in countries with market economies, the Central Bank does not finance the government, but provides funds in the manner of lending against certain collateral (real estate, inventory owned by the state, government securities, etc.). The application of this principle does not allow the constant use of money to cover the deficit of federal and local budgets, thereby restraining incentives for the development of the inflationary process.
  8. Principle integrated use of monetary regulation instruments means that the Central Bank should not be limited to any one instrument of monetary regulation to support the stability of monetary circulation, but use the entire known set of these instruments.
  9. Principle supervision and control over money circulation - the state through the banking, financial system, tax authorities must ensure constant control over the entire money turnover as a whole, and over individual cash flows in the economy. In addition, the object of control is the observance by the subjects of monetary relations of the basic principles of organizing both cash and non-cash turnovers.
  10. Principle functioning exclusively of the national currency on the territory of the country provides for payments for goods and services within the country exclusively in national currency, which, as a rule, is reflected in national legislation.

The listed principles of constructing the monetary system are reflected in its other elements and affect them.

Currency unit- a statutory currency used to measure and express the prices of all goods and services. The monetary unit is usually divided into small proportional parts. Most countries use the decimal division system. So, one Russian ruble is equal to 100 kopecks, one US dollar is equal to 100 cents, and one British pound is equal to 100 pence. The name of the monetary unit is formed historically.

Under the type of state banknotes, means the forms of money that exist within a certain economy (bank notes (banknotes), treasury notes, small change ).

Banknotes Is a legal tender issued by central banks. Their appearance at the end of 17. was due to the development of market relations and, in particular, credit operations. Central banks issued banknotes on the basis of the accounting (purchase) of private commercial bills, which served as their security.

Along with promissory notes, banknotes were secured by gold, which was at the disposal of the central bank. Double collateral gave the "classic" banknotes high stability and reliability. The issued banknotes were regularly returned to the central bank at the maturity of the discount bill, as well as upon presentation by their owners for exchange for gold, since during the gold standard period, banknotes were freely exchanged for precious metals. After the world crisis of 1929 - 1933. the exchange of banknotes for gold was finally discontinued, and today in no country banknotes are exchanged for the precious metal. Banknotes are issued of a strictly defined denomination: in Russia, banknotes in circulation are 10, 50, 100, 500, 1000 and 5000 rubles; in the USA - 1, 5, 10, 20, 50 and 100 dollars; in the UK - 1, 5, 10 and 20 pounds.

Treasury Notes - paper money issued directly by the state treasury: the ministry of finance or a special financial body, as a rule, to cover the budget deficit. Unlike bank notes, Treasury notes were never backed with precious metals and were not subject to exchange for gold or silver. After the abolition of the gold standard, the difference between Treasury notes and banknotes has practically disappeared.

Small coin - an ingot of metal having the weight content and shape established by the law. Coins are minted, as a rule, by the Treasury, and the value of the metal of the coin corresponds only to a part of the denomination (bargaining chip). Coins serve as bargaining chips and allow you to make any small transactions (purchases).

Price scale Is a means of expressing value in monetary units, a kind of technical function of money. In metal circulation, when the money commodity - metal - performed all the functions of money, the scale of prices was the weight quantity of the money metal accepted in the country as a monetary unit or its multiples. The states fixed the scale of prices in the legislation. Initially, the weight content of the coins coincided with the scale of prices, which was reflected in the name of some monetary units (for example, the pound sterling was a pound of silver).

With the termination of the exchange of credit money for gold, the official scale of prices lost its economic meaning. Currently, the scale of prices develops spontaneously and serves to measure the values ​​of goods by means of prices.

Emission system- the legally established procedure for the issue and circulation of banknotes. Emission operations (operations for the issue and withdrawal of money from circulation) are carried out by the central (issuing) bank, which enjoys the monopoly right to issue bank notes (banknotes), and the Treasury (state executive body), which issues small-scale paper banknotes ( from cheap types of metal).

Under the state apparatus responsible for the regulation of money circulation, means that state body, which is legally mandated to monitor and regulate the processes of emission, provision, storage and withdrawal from circulation of banknotes.

The evolution of monetary systems leads to the creation of more economical monetary systems, where the costs of monetary circulation are constantly decreasing, therefore, the costs of social labor are also decreasing. Since the mid-1930s, monetary systems based on the circulation of non-exchangeable credit banknotes have begun to function in the world. Such monetary systems based on the circulation of credit money are characterized by:

  • displacement of gold from both internal and external circulation and its settling in gold reserves, while gold continues to function 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;
  • creation and development of mechanisms of monetary regulation by the state.

In general, the following trends have been observed in the development of the modern monetary system over the past decades in the world economy:

1) gold (gold and money) has been completely displaced from money circulation as a means of payment

2) the release of money into circulation is carried out not only in the manner of bank lending to the economy, but to a large extent to cover the costs of the state (government securities are mainly issued as collateral).

3) Paper money will be forced out of the circulation of money, which have lost their functions - a means of accumulation and world money. The so-called quasi-money, such as checks, bills of exchange, credit cards, bank accounts, etc., are beginning to play an increasingly important role in the money circulation of many countries, and therefore monetary aggregates M0, M1, M2, M3 have begun to be distinguished.

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

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

Thus, the evolution of banknotes is essentially a process of their gradual dematerialization, which made it possible to significantly improve the mechanism of money emission.

Monetary system of Russia Is a typical modern monetary system using non-gold value credit marks, regulated by the Central Bank of Russia through monetary policy instruments.

In the Soviet Union, under conditions of strict centralization and a planned system of managing the national economy, the concept of money circulation was associated only with the circulation of cash. With planned pricing, it was in this area that the economic and social consequences of violation of the law of monetary circulation were most pronounced: an increase in the shortage of many goods, an increase in prices for consumer goods, etc., and, consequently, a decrease in the quality and standard of living of the population.

Control over the mass of cash was carried out by the method of direct planning of its size and growth rates.

The degree of cash provision with goods and paid services in the planned period was established using the balance of cash income and expenditures of the population, the formation of which was associated with the movement of cash. However, this complex system of planning and regulating cash circulation, with all its strict centralization and strict control over the implementation of established plans, was not perfect. The country constantly felt a serious gap between the amount of cash in circulation and their material coverage, which created a shortage of goods and stimulated the rise in prices in the consumer market.

The transition from the administrative-command system of managing the national economy to a market economy radically changed the practice of planning and regulating money circulation.

The monetary system of the Russian Federation after the collapse of the USSR functions in accordance with the Federal Law "On the Monetary System of the Russian Federation" dated 09.25.1992. establishes the legal framework for the functioning of the monetary system. According to this law, the types of money are banknotes, bank notes and metallic money approved by the Central Bank. According to this law, the Central Bank is responsible for planning the volume of money supply in circulation, for creating reserves of banknotes and metal coins.

The Central Bank determines the rules for storage, transportation and collection of cash.

The Central Bank determines the rules and principles of the solvency of banknotes.

1. The government is responsible for the direction of economic policy, and monetary.

2. The government determines the size of the refinancing interest rate.

(note: Refinancing - reimbursement of funds spent at the moment with financial resources of a different type in order to continue providing a loan in conditions when all funds are distributed, or to ensure the repayment of previously formed debt)

The issue of cash into circulation is carried out on the basis of an issue permit issued by the Government.