Today, the monetary system of any country consists of the following elements: monetary unit, types of money, scale of prices, emission system and the state or credit apparatus. The monetary systems of highly developed countries have their own distinctive features on which equilibrium in the money market depends:
- The exchange of banknotes for gold, the provision of banknotes and the abolition of state gold content.
- The transition to credit money that is not exchanged for gold and converted into paper money.
- Money is issued to cover government spending, and not just for bank lending to the economy.
- The prevalence of cashless turnover.
- Strengthening monopolistic state regulation of money circulation.
The monetary system of the Russian Federation
The state monetary system of the Russian Federation is a historically established device for the circulation of money in the country, fixed by national legislation. In 1991, the monetary system of the Russian Federation underwent significant changes; before that, the Russian budget was included in the state budget of the USSR. The state monetary system always determines the banknote that is in circulation in the country and allows you to establish macroeconomic equilibrium in the money market. A monetary unit is a banknote established by law and used to express and measure prices for any product.
- 1. The monetary unit of Russia is the ruble.
- 2. State banknotes with legal payment power - treasury bills, bank notes and loose change (defined by government acts and special laws of the state).
- 3. The state scale of prices is a means of determining the value of goods, expressed in monetary units and based on the weighted amount of precious metal in the monetary unit.
- 4. The state exchange rate is the balance between the currencies of different countries, which is determined by their purchasing power.
- 5. The procedure for issuing (cash and non-cash) and monetary circulation - the processes governed by the domestic legislation of the country.
- 6. The rules for organizing international settlements, import and export of national currency governing operations in the money market are aimed at servicing money circulation within the country and equilibrium in the money market.
- 7. Non-cash money circulation is regulated by the functioning of the money credited to bank accounts.
- 8. Credit and currency regulation is carried out by the Central Bank of the Russian Federation.
The monetary system of the Russian Federation includes the following aspects of financial relations:
- state loan ;
- budget system of the country;
- personal and property insurance fund;
- extrabudgetary funds;
- finance of various forms of ownership.
A monetary system that maintains equilibrium in the money market can be of two types: circulation systems of metallic coins and banknotes, when silver and gold are forced out of circulation by irreplaceable paper and credit money. Metal circulation systems are divided into monometallic and bimetallic. Bimetallic systems are monetary systems in which state legislation secures the role of the official equivalent for two precious metals, silver and gold. At the same time, the state carries out free minting of gold and silver coins for unlimited circulation. Together with them, other banknotes participate in the money circulation: bargaining chip, banknotes, treasury bills, while they can be freely exchanged for gold or silver.
Monometallism differs in that only one of the metals is used as the universal equivalent - gold or silver. Gold monometallism existed in Russia before the revolution, while commodity prices are calculated in gold, it performs all the monetary functions in the country. Today in no country in the world there is a metal circulation, and state banknotes are issued in the form of credit bank notes, treasury bills and small coins. Equilibrium in the money market allows preserving their capital not only to state structures, but also to individual citizens who trust their contributions to the state.