Basicoverview
Currencyisusedasameansofcirculation,thatis,moneyactsasamediumforcommodityexchange.Thefunctionofcurrencythatweusuallyseeintheprocessofbuyingandsellingcommoditiesbelongstothiskindoffunction.Therefore,thisfunctionisalsocalledameansofpurchase.
Itisself-explanatory,currencyasameansofcirculationcannotbeconceptualcurrency,butmustbeactualcurrency.Inthecaseofcurrencyperformingtheroleofameansofcirculation,commoditiesandcommoditiesarenolongerdirectlyexchangedwitheachother,butareexchangedusingcurrencyasamedium.Commodityownersfirstexchangetheircommoditiesforcurrency,andthenusecurrencytoexchangeothercommodities.Thiskindofcommodityexchangewithcurrencyasamediumiscalledcommoditycirculation.Thetransitionfrombarteringtocommoditycirculationmeansthattheinternalcontradictionsofthecommodityeconomyhavefurtherdeveloped.Becauseundertheseconditions,sellingandbuyingaredividedintotwoseparateprocesses.Ifthepersonwhosoldthecommoditydoesnotbuyitimmediately,itwillmakethecommoditiesofothersunsellable.Inotherwords,thefunctionofcurrencyasameansofcirculationalreadyincludestheformalpossibilityofaneconomiccrisis.
Currencyasameansofcirculationwasinitiallypreciousmetalbarsandblocks,laterdevelopedintocoins,andfinallypapermoneyappeared.Papermoneyisproducedfromthefunctionofmoneyasameansofcirculation.Thefunctionofthemeansofcirculationisthefunctionofmoneyasamediumofcommodityexchange,thatis,themeansofpurchase.Itsmainfeatureisthatinthesaleofcommodities,thetransferofcommoditiesandthetransferofcurrenciesarecompletedatthesametime.Inlayman'sterms,itisone-handedpaymentandone-handeddelivery.
Fromtheperspectiveofvaluemovement,whencurrencyperformsthefunctionsofameansofcirculation,themovementofvalueistwo-wayatthesametime.Thatis,thesellertransfersusevaluewhileobtainingvalue,andthebuyerobtainsusevaluewhiletransferringvalue.
Moneycirculationiscausedbythecirculationofcommoditiesandservesthecirculationofcommodities.Thecirculationofcommoditiesisthebasisofcurrencycirculation.Asameansofcirculation,currencycannotbeconceptualcurrency,itmustbeactualcurrency.
Backgroundofproduction
Backgroundofproduction:differencefrommeansofpayment
1.Differentmeanings:CurrencyactsasamediumofexchangeforcommoditiesThefunctioniscalledthefunctionofthemeansofcirculationofmoney;whenmoneyisusedtopayoffdebtsorpaytaxes,rents,wages,etc.,itisthefunctionofthemeansofmoneypayment.
2.Thebackgroundofproductionisdifferent:Themeansofcirculationisthataftertheappearanceofcurrency,currencyhasbecomethemediumofcommodityexchange;themeansofpaymentappearedwiththecreationofcredittransactionsIncreditsalesandcreditpurchases,currencyisusedtopaydebts.
3.Thetwopurchaseobjectsaredifferent:Asthecurrencyofcirculation,thepurchaseismainlyphysicalgoods;thecurrencyasthemeansofpayment,thepurchaseismainlyservices.
4.Thetimeandspaceofcurrencydeliverybetweenthetwoaredifferent:Asthecurrencyofcirculation,whenbuyinggoods,itisgenerallydeliveredatonetime,thatis,"payinonehand,One-handdelivery."Thecurrencyusedasameansofpaymentcanbedeliveredininstallmentswhenpurchasinggoodsorservices,whichcanbeseparatedintimeandspace.Orpayfirst,thenserve;orservefirst,thenpay.
Inshort,thebestwaytodistinguishthemeansofcirculation-andthemeansofpaymentisthatthemeansofcirculationusuallyreferstothepurchaseofphysicalobjects;andthemeansofpaymentreferstothefunctionsperformedbymoneyincredit,lease,andloans.
Mainfeatures
1.Realcurrencymustbeused,withonehandforpaymentandonehandfordelivery.
Moneydemand:Howmuchmoneyisneededincirculationdependsonthreefactors:price(P),thequantityofgoodstobesold(Q),andthevelocityofmoneycirculation(V).Underthemetalcurrencysystem:M=PQ/V;underthecreditcurrencysystem:PQ≡MV,2.Currencyasameansofcirculationisfleetingintheexchange.Whatpeoplepayattentiontoisthepurchasingpowerofcurrency.Aslongasthereispurchasingpower,tokencouponscanalsobeusedascurrency.Papermoneyandcreditcurrencyarethusproduced.
Twolinks:Overcomingthedifficultiesoftheexchangeofgoods,promotingcommoditycirculationandmarketexpansion;separatingtheexchangeprocessintotwolinksofbuyingandselling,andthepossibilityofbuyingandsellingoutoftouchandimbalancebetweensupplyanddemand.Buyingandsellinggenerallyreferstotheexchangeofgoodsorcurrencybetweenthetwopartiesinexchangeforwhattheyneed.Theyusuallysignasalescontract.Buyingandsellingistheearliestandmostbasictransactionbehaviorofmankind.Onethingissoldforafewyears,anditismostcommonwhenpricesfluctuate.Thisisactuallyoutofdisregardforcreditandforpersonalgain.
Thesupply-demandrelationshipreferstotherelationshipbetweencommoditysupplyanddemandundertheconditionsofthecommodityeconomy,therelationshipbetweenthemutualconnectionandmutualrestrictionofthesupplyanddemandofcommodities,itistherelationshipbetweenproductionandconsumptioninthemarketreflect.
Currencyproduction:1.Afterthecurrencyisproduced,fortheconvenienceofexchange,peoplecastpreciousmetalsintocoinswithacertainweightandmark(coinsarecastbythecountrywithacertainshape,weight,coloranddenomination.Valueofmetalcurrency),whilethemintingisbasedonnaturalwearandtearandhumanfactorsincirculation,resultinginasituationinwhichitsactualvalueislowerthanitsnominalvalue.
Actualvalue
2.Currencyholdersonlycareaboutwhetherthecurrencycanbuytherequiredcommoditiesaccordingtothevalueitrepresentsinthetransaction,insteadofusingit.Whatistheactualvalueofthecurrencyinexchange.Thefactthatundervaluedcoinsarestillusedasfull-valuecurrencyimpliesapossibility:preciousmetalcoinscanbereplacedbyvaluesymbols,sopapermoneyisproduced.Papercurrencyreplacesmetalcurrencytoperformthefunctionsofameansofcirculation.Therefore,thecirculationofpapercurrencyisbasedonthelawofcirculationofmetalcurrency.
3.Theoriginalpapercurrencyisabanknoteissuedbyabankthatcanbeexchangedforpreciousmetalcurrencyandrepresentsthecirculationofpreciousmetalcurrency
4.Papercurrencyisavaluesymbolissuedbythestateandusedcompulsorily.
①Itisakindofcreditcurrency,whichisbasedonnationalcredit;
②Thecirculationofbanknotesisafixedcurrencysystem.Forexample,China's"RenminbiManagementRegulations"stipulatesthattherenminbiistheonlylegalcurrencyincirculationinChina.
Circulationlaw
Sincecurrencyperformsthefunctionofcirculationmeans,itdividescommodityexchangeintotwoindependentacts,sellingandbuying,whichgivesbirthtothecontradictionthatcommoditybuyingandsellingmaybeoutoftouch.Whenbuyingislessthanselling,itwillinevitablycauseabacklogofsomecommodities,causingacrisisofsurplusinseverecases.Whenbuyingisgreaterthanselling,itwillincreasethepressureofrisingpricesandeasilycauseinflation.
Thereasonsforthesetworesultsarecomplex,andoneoftheimportantreasonsisthattheamountofcurrencycannotmeettheneedsofcommoditycirculation.Theoccurrenceofthisphenomenonraisesaquestiontopeople:Howshouldacountry'scurrencycirculationinacertainperiodoftimebedetermined?Thisrequiresstudyingthelawofcurrencycirculation.Thelawofcurrencycirculationisalsocalledthelawofmoneydemand.Itreferstothelawoftheamountofmoneythatisobjectivelyneededinacountry'scommoditycirculationprocessinacertainperiodoftime.
Commoditycirculation
Thecontentofthecurrencycirculationlawis:theamountofcurrencyneededincirculationisdirectlyproportionaltothetotalpriceofcommoditiestoberealized,andinverselyproportionaltotheaveragecirculationspeedofthesameunitofcurrency.Thecurrencyincirculationherereferstometalcurrency,soitisalsocalled"thelawofmetalcurrencycirculation".
Inthecaseofmetalcurrencycirculation,becausemetalcurrencyhasthefunctionofastoragemeans,itcanspontaneouslyadjusttheamountofcurrencyincirculationtoadaptittotheactualdemand.Therefore,thereisnopossibilityofinflationordeflation.
Thelawofcurrencycirculationmeansthatcurrencycirculationmustadapttothelawofcommoditycirculation.
Thislawcanbereflectedbyaformula:theamountofmoneynecessaryforcirculationinacertainperiodoftime=commodityprice×commoditycirculation/unitcurrencycirculationspeed=totalcommodityprice/unitcurrencycirculationspeedfromthisFromtheformula,wecanseethatcommoditycirculationisprimaryandcurrencycirculationissecondary.Commoditycirculationdeterminescurrencycirculation,andtheamountofcurrencycirculationmustadapttothelawsofcommoditycirculation.