The history of this relationship dates back to ancient times. Surplus products were exchanged for other types of subsistence goods and, thus, commodity-money relations arose. But initially there was no production yet. These relations can be called commodity exchange. With the development of society and the division of labor, the production of goods appears, and such an exchange becomes regular.
So, commodity-money relations are those relations that arise in society as a result of the production and exchange of goods.
Before the emergence of a single equivalent of exchange, the scheme of these relations was simplified. Surplus goods produced were exchanged for other necessary goods in a certain proportion.
As a result of the exchange of goods , their individual types appeared, which began to play the role of a common equivalent. These were goods in high demand. This is the next stage in the formation of commodity-money relations. But they still cannot be called full-fledged. There was a barter exchange, the economy was mostly subsistence.
The next step was the emergence of a single equivalent for all peoples. Initially, its functions were performed by precious metals (silver or gold). Naturally, such relationships were not always convenient. There was a need for a unit of measurement for all types of goods in order to simplify the exchange. So gradually the money appeared.
At this moment, there was a transition from the scheme “goods to goods” to the scheme “goods-money-goods”. So commodity-money relations were born.
Money has also come its way of becoming. Initially, these were metals. Then began the official release of money. Gold was chosen as the material, due to its properties (not to darken, not to rust) and a uniform consistency. Gold was one of the most expensive and valuable metals, which also became the basis for the choice. Initially, full-fledged coins were issued, but over time they began to be cut off and the metal sample reduced. This was necessary to reduce the cost of minting coins. Then began the release of money from paper. They are also called inferior, because the cost of their release is much lower than the assigned. After that, coins from less precious metals were minted , which also reduced the cost of their production.
This process was the beginning of the development of forms of value.
It must be said that commodity-money relations played a huge role in the development of society. They became the main stimulus in the emergence of relations between individual layers of society, people and states. The markets that arose as a result of these relationships became cities over time. The need for exchange and trade was the impetus for the development of shipping and transport. Writing arose and, as a result, accounting for trading operations. Therefore, monetary relations are the engine of development of all stages of human activity.
Today, these relationships have taken a more modern form. But it cannot be said that they are stable. As a result of their imperfections, crises occur that have a significant impact on the world community. But reaching a modern level, commodity-money relations have come a long way.
For the normal functioning of society, commodity-money relations must be subject to a certain law. The amount of money put into circulation ideally corresponds to the quantity of goods and covers its value. Only in this case there will be no inflation or oversupply of goods unsecured by the money supply.
Summarizing, we can say that commodity-money relations are a prerequisite for the full development and normal existence of society and social relations.