Among the concepts that characterize the monetary relations in society

Among the concepts that characterize the monetary relations in society, there is major money circulation, circulation, finance, credit, money supply, velocity of money. If some of them found in the literature a fairly complete and unambiguous interpretation, the concept of cash flow and the money still remains controversial.Discussions are underway regarding the nature of these concepts, their interrelationships, application fields and the like.In many editions of money circulation is interpreted as the aggregate of all cash payments in the economy. Such a definition has the important disadvantage that captures only the quantitative aspect of cash flow, its effective dimension.The essence of it as a movement of money in the process of reproduction remains unaddressed. This deficiency is the cause of a formal approach to the definition of currency, which is treated just like cash in money circulation.This approach is supported by Russian authors of the fundamental textbook "Money, credit, banks' issued under the editorship of OI Lavrushina in 1998, however reproduced position in the interpretation of cash flow in a textbook of Russian authors were not consistent, and in determining the monetary authors returned to the formal criteria, reducing it only to the turnover of cash on the ground, which only provides cash circulation outside banks. In fact, the movement of money at the same realization of the values ​​is carried out as cash and noncash money going from one party to another sphere of circulation. The only difference is that the cash is moved from the hands of the payer at the hands of the recipient, and non-cash money transferred from the account of the payer to the beneficiary. But this difference does not change the essence of the phenomenon of money circulation, which serves the realization of real goods.In a market economy, social production is a commodity form, which determines the expression of a double movement of the gross national output - in-kind, clothing and money. During playback, movement in the value of these two terms is shown as two separate processes - as the movement of products and a cash flow or cash income.Nevertheless, they are inextricably linked in their common substance - the value of the total product. Money based on that value, it determines the real value of the mass of money that is in circulation, regardless of its nominal value. However, the movement of money transfer services that cost in the process of reproduction, individual cash transactions economic agents are the cause of the corresponding displacement between the real value, ie have real economic substance.The process of social reproduction takes place continuously, so there is incessant and cash flows, which it serves. Taken by itself this process of continuous movement of money between the subjects of economic relations in the public playing a turnover of money.Cash turnover - a phenomenon macroeconomic discipline. It serves the entire circuit of the total capital of society at all stages of social reproduction: the production, distribution, exchange and consumption. So often it is called the total money in circulation.After advancing money for the purchase of capital goods and payment of labor capital goes into production and provides manufacturing gross domestic product.After payment of manufactured goods and services serve the implementation of the national money and the release of the product of social capital in cash. During the use of cash proceeds from the sale of products and services, distribution of the value of national product between the owners of factors of production (creditors, shareholders, employees hired) and the state, which belong to the established taxes. All economic agents are formed revenues, due to which they direct capital in the sphere of consumption - production and personnel. This provides a new cycle of social reproduction.Cash turnover as a macroeconomic phenomenon should be distinguished from the turnover of money in circulation within a single individual capital, ie at the micro level.In the latter case, money is one of the functional forms of capital, and its constituent element of wealth owned by the owner of the individual capital. In this case, money is the capital they need for themselves the appropriate rate of return (income) is similar to other forms of capital. The greater weight of money has given individual owner, the more rich, the greater its ability to "earn" profits or income.Just play another role in the overall money money back. Here they function solely as money and not the functional form of capital. Therefore, their weight in the back can not be considered part of the country's wealth, ie its growth does not increase the total capital of society like the capital of the individual. If the money supply, which is located in the back, suddenly doubled, the total wealth of the country has not increased, and could even decrease due to increased costs of production of extra money and provoking inflation of their release into circulation.This provision does not alter the fact that much of the mass of money, which serves the aggregate turnover are capitalized and transformed into loanable capital.Capitalization of the money helps to accelerate the implementation of its GDP, and so - to increase its volume, ie growth of social wealth, but the most money at the macro level of such wealth is not converted. Due to the capitalization of funds within the available weight quickly transferred from one economic entity to another, though faster, "shuffled", but qualitatively they do not change, remaining only a reflection of the real bagatstva. .