EXMO affiliate program

The essence of money as an economic category in evolutionary theory is to resolve contradictions between use value and value.

When the production of natural product meets the manufacturer's requirements, ie I had value as a use-value (the product's ability to satisfy some needs).

 

Money is almost always served not only the national economy but also economic relations between different countries,

trade between them and the movement of capital. There is a need for comparison of the value of money in different countries and in the definition of the measure of their exchange with each other. This function can be called money reversibility. Its importance has increased significantly over the past 100 years.

In the function of means of accumulation (savings) money is used for the formation of a reserve of means of purchase and payment. The fulfilment of the money functions of means of hoarding due to the needs of extended public reproduction, expensive consumption. Thus, producers wanting to invest in expensive equipment needs to accumulate, i.e. after the implementation of the goods not to pay in cash takings. With the expansion of commodity economy, into a continuously reproducing the system of relations there is a need of creating of insurance reserves not in kind, but in a more compact and versatile monetary form.

Teaching about money is the most important section of economic theory.

The analysis of the monetary sphere is a prerequisite for building models of functioning of economic systems. An important aspect of modern monetary theories is their "end product" — recommendations for economic policy measures.

Under certain circumstances, economic agents can do without money. Modern economic theory identifies two types of economic systems:

  • the economic system, which operates without money, based on the physical exchange, or barter economy;
  • a monetized economy.

The functioning of the money in circulation among the States making them the world's money.