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Money and credit - Ivanov VM

2.3. Money as a means of education treasures

The third function of money -.. Means of accumulation, ie, a special type of asset is retained after the sale of goods and services and provides its owner the purchasing power in the future. Of course, any asset to some extent may be a means of accumulation. Users can store their wealth in the form of jewelery, works of art, houses, stocks, bonds, and in many other forms. Money, however, are better suited to perform this function, since it is inherent in liquidity. Liquid is called an asset that can be used as a means of payment (or easily converted in the payment means) and a fixed nominal value. Money, by definition, have improved liquidity. As a treasure of money act as representatives of wealth in general. This function can perform not only gold coins, but also the material of money - gold bullion, gold and so on..

Money as a means of education treasures spontaneously regulate the circulation of money. Constant fluctuations in the size of commodity production, commodity prices, require continuous changes in the money supply. That inflow and outflow of cash metal are only possible through the expansion and contraction of the volume of functioning of money, so money is never overwhelmed monetary channels. Thus, the possibility of conversion of currency into treasure and treasure reconversion into money is a necessary condition of dynamic equilibrium of the monetary system as a whole.

The incentive to the accumulation of cash is a treasure the special nature of money as a universal product that can be exchanged for any product. But although qualitatively endless money, because they can be converted to any product, each quantified the amount is limited, and because it gives the owner the opportunity to buy a certain quantity of goods. The contradiction between the quality immensity of money and quantitative restrictions makes thirst insatiable accumulation of treasures.

Function means of hoarding - not fundamental in the monetary system. However, the role of treasure as a monetary regulator can not be overestimated.

Treasure - a dead cost. It can only form such substances, which, because of their special properties (primarily high-level and long-term persistence value) may be of value as the abstract, t. E. The value created by abstract labor. That is what is the specific feature that distinguishes from the variety of products and one opposes it as the rest of the money.

Treasures are formed by the accumulation of not only gold (or another commodity money), but also other high and stable values, which are mainly in the first place are the precious metals and precious stones. The composition of the treasure is constantly changing. It remains unchanged only that among the components is definitely the goods, functioning as money, and that it is never the only component of the treasure.

That item could be:

• short-term securities of the Federal Government, such as treasury bills. They are generally considered to be highly liquid, as the market prices of these securities only slightly changed over time, and they can easily be traded on financial markets, and the costs of the transaction will be very small;

• shares and long-term bonds issued by the private corporations. They have less liquidity than short-term securities of the federal government - the price of these assets is significantly stronger than change over time, and fees charged for transactions with such securities, slightly higher; • property (eg a house, a farm or a shop), which is an extremely illiquid, market real estate prices are very volatile and difficult to predict prior to the transaction - the search for a home buyer or land often takes many months, and the cost of the transaction (the fees brokers advertising, fees for legal registration) can be quite large. Although perfect liquidity of money makes them an ideal tool storage for short periods of time, money, have the disadvantage that the owner of monetary assets often have to sacrifice the income that can be obtained by using less liquid assets. Cash placed on certain types of bank accounts, do not bring them to the owner of any interest income.

With the introduction into circulation of securities and paper money treasures education process is somewhat altered, and sharpening contradiction led to a clearer separation of the functions of hoarding and accumulation. Accumulation of paper money, only represent outstanding gold and not have their own value, is not a form of treasure. This is only the accumulation of the right to a certain value, materialized in stored in bank basements yellow metal. However, because the moneys are quite specific amount of gold, the withdrawal them from circulation reflects the retirement of the gold, and the accumulation of currency is a reflection of hoarding. The foregoing is true only for banknotes, gold swap. Credit and paper money can not serve as a means of hoarding, as they have no intrinsic value. But having a representative value, they can perform the function of means of hoarding, which arose on the basis of the treasures of the functions of education. The prerequisite for this is to match the amount of paper money with legal requirements of money circulation. If the amount of paper money exceeds the needs of the economy, they are impaired, ie. E. There is inflation. In this case, paper money can not perform the function of the accumulation of funds. Since the accumulation is a necessary element of social reproduction, the failure to paper money accumulating funds function leads to economic disaster.