Raising the gold content or monetary exchange rate. Exchange rate - factors influencing its formation. During the monetary reform of Catherine II ...
Increasing the gold content of the monetary unit. Dictionary of a numismatist
(from Re... and lat. valeo - I mean, I stand)
an official increase in the gold content of a country's currency or an actual increase in its exchange rate (See Exchange Rate). One of the means of state-monopoly regulation of the economy of capitalist countries. According to the mechanism of influence on the economy, R. is the opposite of devaluation. Until the end of the 60s. 20th century R. was a relatively rare phenomenon in international currency practice. This is explained by the fact that a country that redistributes its own currency places itself in a less advantageous position in the field of foreign trade, the influx of foreign capital, and international tourism in comparison with other countries. By raising the exchange rate of a given country relative to the currencies of other countries, R. causes an increase in the prices of exported goods in foreign currency and thereby reduces the country's competitiveness in the world market and hinders the export of its goods. By lowering the prices of imported goods expressed in the national currency, R. leads to an increase in demand for them and an increase in imports. when exchanging currencies, they will receive a smaller amount in local currency. And vice versa, for a country that has revalued its currency, it becomes more profitable to export capital, because. there is a possibility of cheaper purchase of foreign currency. In the field of international tourism, R. leads to a reduction in income from the influx of foreign tourists, because. trips to this country are more expensive for them, and, conversely, it stimulates trips abroad by domestic tourists, for whom foreign currency becomes cheaper. The governments of capitalist countries use inflation to fight inflation. It was precisely as an anti-inflationary measure that the R. of their currencies were carried out by the FRG in 1969 and 1971, the Netherlands, Switzerland, Austria and a number of other countries in 1971 and 1973. By limiting the influx into the country of foreign and mainly speculative, wandering in search of a more profitable investment of capital, R. allows, to a certain extent, to restrain the increase in the money supply in circulation and, on this basis, to slow down the growth of domestic prices. The reduction in import costs as a result of R. also limits the growth of domestic prices. R. is also carried out with the aim of curbing the growth of the trade surplus. Such exchanges are sometimes carried out under pressure from other countries or international monetary and financial organizations. Thus, in December 1971, the Japanese government, under pressure from the United States, revalued the yen in order to equalize the trade balance between the two countries. In the early 70s. With the use in a number of capitalist countries of "floating", fluctuating (deviating from the established parity under the influence of supply and demand) exchange rates, some capitalist countries resorted to the actual exchange rate of their currencies in the form of an increase in their market rate without officially changing their gold content. Thus, the introduction in February 1973 of the "floating" exchange rate of the Japanese yen meant the actual R. of the yen against the US dollar by 16.25%. O. M. Shelkov.
- - Increasing the gold content of the monetary unit...
Dictionary of a numismatist
- - English. revaluation; German Revalvation. An official increase in the gold content of a monetary unit or an increase in its exchange rate against the currencies of other countries, carried out by the state ...
Encyclopedia of Sociology
- - an increase in the exchange rate in relation to the currencies of other countries and international accounting monetary units ...
Glossary of legal terms
- - an increase in the value of the currency, expressed in an increase in the official gold content, the currency parity of the monetary unit or the actual steady increase in its exchange rate, carried out ...
Terminological dictionary of a librarian on socio-economic topics
-
Glossary of business terms
- - Increasing or stabilizing the value of a commodity or currency by artificial means, usually with the intervention of the state ...
Financial vocabulary
- - an increase in the exchange rate of a national or international monetary unit in relation to the currencies of other countries, international monetary units ...
Big Economic Dictionary
- - 1) an official increase in the gold content of the national currency or the exchange rate of a national or international monetary unit in relation to the currencies of other countries, international monetary units ...
Encyclopedic Dictionary of Economics and Law
- - an official increase in the gold content of the country's currency or an actual increase in its exchange rate ...
Great Soviet Encyclopedia
- - a one-time increase in the exchange rate in relation to the currencies of other countries, international accounting monetary units. The opposite concept is devaluation ...
Modern Encyclopedia
- - an increase in the exchange rate in relation to the currencies of other countries, international accounting monetary units ...
Big encyclopedic dictionary
- - REVALUATION and, f. reevaluation f. reevaluer value price, value...
The sun peeped out for a second from the gray mass of heavy clouds and again disappeared into the whirlpool of the cold February sky. The sailor of the French transport ship looked disappointedly towards the gray skyscrapers of New York and trudged to his cabin. Among the crew it was rumored that the ship was chock-full of money: green American papers.
“So much money,” Jean thought, involuntarily spreading his arms to the side ... “You can buy that dress for Marie at the Galeries Lafayette, but what’s there, you can buy a whole shopping center and even more ... and Jean’s hands crawled to the sides again ...
In the meantime, a tall man of mature years, straightening the lapel of an expensive jacket that could not hide the military bearing of the owner, looked at his interlocutor, smiled slightly and spoke in his usual confident tone:
Gold does not change its nature: it can be in ingots, bars, coins; it has no nationality, it has long been accepted by the whole world as an unchanging value ... We want to exchange 1.5 million US dollars for gold at a rate of 35 dollars per ounce!
The interlocutor’s face changed for a second, he sucked in air, tilted his head to one side, and hissed:
You will be in serious trouble!
- In this case, we withdraw from the territory of France the military personnel of the alliance and evacuate the headquarters of NATO and the military bases of NATO and the United States!
This difficult conversation took place on February 4, 1965 between General Charles de Gaulle and US President Lyndon Johnson. The result will be 1200 tons of gold, which the French president will take home, as well as the abolition of the gold standard by America.
From early childhood, he knew that he was born for something great.
The future general was born on November 22, 1890 in the city of Leela. His family belonged to an old aristocratic family. Charles's father was a teacher of philosophy and French at the Jesuit College. Mother was a religious woman and incredibly energetic. Later, in Military Memoirs, de Gaulle writes: “My father, an educated and thinking man, brought up in certain traditions, was full of faith in the high mission of France. He introduced me to her story for the first time. My mother had a feeling of boundless love for her homeland, which can only be compared with her piety. My three brothers, sister, myself - we were all proud of our homeland. This pride, mixed with a sense of anxiety for her fate, was second nature to us.”
Since childhood, the boy was instilled with a love of reading, Charles rarely appeared at school, as his father preferred home education and the children often took exams externally. The boy was especially interested in: military affairs, history, philosophy and literature. He later said of himself:
“In my youth, I was especially worried about everything connected with the fate of France, whether it was the events of its history or its political life. I was interested in and at the same time resented by the historical drama that is constantly being played out in the arena of political struggle. I admired the intelligence, enthusiasm and eloquence of many of the participants in this drama. At the same time, it saddened me that so much talent was wasted senselessly as a result of political chaos and internal strife, especially since the first harbingers of war began to appear at the beginning of the 20th century. I must say that in my early youth the war did not inspire me with any horror and I extolled what I had not yet experienced. I was sure that France was destined to go through the crucible of the greatest trials. I believed that the meaning of life is to accomplish an outstanding feat in the name of France ... "
In the fall of 1909, the future general entered the Saint-Cyr military academy, then the Higher Military School in Paris.
During the First World War he was wounded three times and taken prisoner. After his release, he returned to Saint-Cyr again, but already as a teacher of military history.
During World War II, Charles de Gaulle was appointed commander of a tank brigade, after receiving the rank of brigadier general, he was appointed deputy minister of national defense. However, as is known from history, under the aggressive pressure of the German army, France quickly surrendered its positions. The government leadership capitulated. The population, for the most part, took what was happening for granted.
Charles de Gaulle was forced to enter into negotiations with Churchill. Later, he will speak by radium directly from England with an appeal to his people:
“The military leaders who for many years led the French army formed a government. Referring to the defeats of our armies, this government entered into negotiations with the enemy in order to stop the fight. Of course, we were suppressed and continue to be suppressed by the mechanized, ground and air forces of the enemy. We are forced to retreat not only by the numerical superiority of the Germans, but by their tanks, planes, their tactics. It was the tanks, planes, tactics of the Germans that took our leaders by surprise to such an extent that they plunged them into the position in which they are now. But has the last word been said? Is there no more hope? Has the final defeat been dealt? Not! Believe me, for I know what I'm talking about: nothing is lost for France, we can win in the future ... This war will not be limited to the long-suffering territory of our country. The outcome of this war is not decided by the battle for France. This is a world war. Despite all the mistakes, delays, suffering, we will be able to win in the future!! »
In response to the emotional appeal of the general, the French organized a fight against the Germans in the zone of occupation and beyond. The Petain government, subordinate to Hitler, sentenced de Gaulle to death in absentia.
This was the beginning of the Resistance, where Charles de Gaulle led the united patriotic forces of the Free French.
After the end of the war, de Gaulle will try to carry out some reforms in France, in particular, he is trying to cancel the constitution of 1946, which significantly limited the power of the head of government, but does not find enough support to implement his ideas. He leaves his post and settles for a while in the village, writes a lot, reads and spends time with his family.
Return to power Charles de Gaulle was helped by the Algerian crisis of 1958. The bourgeois majority of the parliament came up with a proposal to return him to the presidency. De Gaulle accepts the proposal and issues a new Constitution, which significantly expands his powers and limits the role of parliament.
"Economic Austerlitz" by Charles de Gaulle
Charles de Gaulle, to put it mildly, did not treat America very warmly. After the test of the atomic bomb by France gave a positive result, he announced the refusal of his country's participation in NATO. This decision was also influenced by the visit of the French general to the USSR, where Soviet missiles with nuclear warheads were demonstrated to him, and implicitly pointed to the headquarters of NATO located in Paris. In 1963, America strongly "recommended" France to participate in the creation of a "multilateral nuclear force" under the command of the Pentagon, to which de Gaulle replied with a categorical refusal. And the final touch was the withdrawal of the French Atlantic fleet from NATO command.
Naturally, de Gaulle's policy irritated the Americans; they called him "an old man who has lost his mind." Roosevelt and Churchill, who believed that there would be no problems with France, were constantly rebuffed by the "arrogant Frenchman", or, as they called it, "hidden fascist."
But that was only the beginning. Once, the former Minister of Finance, Joseph Cailliau, told General de Gaulle a joke: “A painting by the famous Raphael was put up for sale at the Drouot auction in Paris. An Arab, in order to master a masterpiece, offers oil, a Russian - gold, and an American constantly raises the price and acquires Rafael for 10 thousand dollars. "What's the joke?" de Gaulle was surprised. “And in that,” the former minister replied, “that the American received Rafael for only three dollars ... That is how much the pile of paper on which all this money was printed costs.” The anecdote greatly impressed the general, he called dollars "green wrappers" and prepared America "economic Austerlitz."
So, on February 4, 1965, Charles de Gaulle, at a meeting with Lyndon Johnson, announced his intention to exchange $ 1.5 billion from French state reserves for gold, in accordance with the Bretton Woods agreement, according to which $ 35 per ounce was supposed, and this is equivalent to 1.1 g for 1 dollar. All other negotiations were left to the financial specialists of Paris. According to the rules of the Gold Pool, the exchange could only take place in the US Treasury. Therefore, at first one ship “full to the brim” with money came to the shores of New York, and then an airplane loaded to the eyeballs with green banknotes “pulled itself up” for exchange. By the end of 1965, out of 5.5 billion dollars, the French had no more than 800 million left, the rest of the amount returned to the state treasury in the form of gold.
Following France, other countries also decided to pull off the “Charles de Gaulle scam”, the Germans, “envying” the resourcefulness of the French, also reached for the golden mountains of hard currency. Ludwig Erhard, Federal Chancellor of Germany, nevertheless showed ingenuity, defiantly condemned the French for their "betrayal", while he himself quietly collected dollars and also presented them to America for exchange. At the same time, the amount was several times more than one and a half million dollars brought by the French. Following Germany, the central banks of Canada, Japan and other countries wanted to return the yellow metal. The gold reserves of the United States were melting before our eyes, by 1968 the treasury had given away half of the hard currency. In March of the same year, the country's leadership limited the free exchange of dollars for gold, and on August 15, 1971, American President Richard Nixon announced the abolition of the "gold standard" and with it the Bretton Woods agreement, completely uninterested in the opinions of the other participants in the agreement. The dollar, and all other world currencies, thus simply turned into pieces of paper, and existed only due to the consumer's faith in their strength.
Thus, the "economic Austerlitz" of Charles de Gaulle can be called a failure. He wanted to push the "green candy wrappers" into the background, to return the former importance of the yellow metal, but it turned out the other way around. In addition, several strikes soon took place in France, demonstrations and riots began, most historical sources claim that this situation did not develop without the help of CIA agents. De Gaulle left the presidency without waiting for the end of his second electoral term.
Due to the military power of America, as well as the influence of the NATO military bloc, the dollar has taken a leading position in international settlements. Exchange rates were no longer strictly fixed and were constantly changing under the influence of various factors. It became almost impossible to control the dollar exchange rate.
Speculators began to take advantage of the current situation, making huge fortunes on the movements of rates. The foreign exchange market began a “new life”, in which America, unrestrained by anything, launched printing presses at full capacity, and tons of “green papers” flew into the world
In the middle of the 18th century, the previously dominant agrarian economy lost ground, and industrial production was gradually introduced to replace it. The industrial revolution in different countries had its own characteristics, but in general, this whole process can be placed in the 19th century. In the place of manufactories, factories grew up, manual labor gave way to machines. Production forces on the basis of the machine industry formed quickly, capitalism knocked on the doors of developed European countries, and with it the gold standard system appeared.
The gold standard is a settlement system where a certain amount of gold is taken as a unit.
Why exactly gold?
High cost for a small quantity
well kept
Can be easily taken apart and put back together
Easy to recognize
Before gold, of course, there were other "metal" standards, such as bronze, and later silver. But they were inferior to the yellow metal in many qualities and characteristics.
However, it turned out to be impossible to use gold directly all the time. Firstly, the quantity of goods is steadily growing, but it is not so easy to ensure an equivalent growth of "gold money". Secondly, gold coins still wear out, “coin cutting” was also popular, when scammers cut off the edge and a smaller coin was passed off as a full-fledged one. There were "means of protection" in the form of notches, but they were also bypassed by drilling holes and cutting out parts, filling them with other metal. As a result, it was impossible to determine the real value of the coin. Thirdly, the transportation of gold is a very laborious and costly process, if only because it weighs a lot. Fourthly, if a certain amount of gold is lost, it becomes difficult to restore stocks, here you can’t turn on the printing press, in order to complete the required amount, you need to look for the precious metal directly. And finally, fifthly, money circulation was disrupted due to the constant “damage to coins”, this is when the state elite reduced the weight of the coins or the content of the precious metal in them, without official notification.
Therefore, the appearance of paper money was an excellent way out, given that it was originally backed by gold. They can otherwise be called a certificate that gives its owner certain rights. When there was a settlement with paper money, people exchanged among themselves the right to use a certain amount of gold, without directly transferring the gold metal itself. It was both convenient and safe for the following reasons:
Money can be of different denominations - this allows you to use them both in large transactions and in small ones;
Paper money will not lose value when worn out;
Paper money is easy to replace and recover.
Later, paper money began to be used by the government in order to have control over the state as a whole.
The gold standard works simply and reliably: the monetary unit issued by the country corresponds to a certain amount of gold, using this data, the countries receive the exchange rate.
Officially, the gold standard was first fixed in 1867 by the Paris Monetary System, at the conference an interstate agreement was drawn up, where gold became the main form of world money.
The gold standard had many supporters. Of course, the system made the economy stable, since the government could not turn on the printing press and draw more paper than there was gold backing the currency. It turns out that the amount of money was theoretically tied to the country's gold reserves. At the first request, the owner of the monetary unit could make an exchange for a portion of gold corresponding to the amount.
The gold standard was originally adopted in Great Britain in the late 18th century. Over time, other countries also switched to this system. First Germany (1871-1873), then the USA (1873), France (1878), Russia (1895-1897) and Japan (1897). Gold moved freely between countries and performed the function of world money, supported the exchange rate of national currencies of countries.
This situation continued until the First World War. Those. gold acted everywhere as money, and paper currency, as it were, was its representative. At the same time, paper money "easily" changed to the yellow metal, and the exchange rates were clear to everyone. This period in the history of finance was called the Golden Age. The time of "the most free capitalism" while maintaining a fixed exchange rate.
The collapse of the "gold standard" and the Bretton Woods conference
The inflation that arose during the First World War led to the fact that it became impossible to maintain the exchange of currency for gold, respectively, this inevitably led to the collapse of the "gold standard". The dominant countries tried to revive it in the 1920s, at least in a modified form, but the world economic crisis that began in 1929 made this impossible. In the UK, the peg of gold to the pound sterling was abolished. This period is characterized by the constant adjustment of currency parities, the strengthening of foreign exchange controls and the introduction of restrictions on imports.
From July 1 to July 22, 1944, a conference was held in the state of New Hampshire (USA), named after the resort - Bretton Woods. 44 countries have signed agreements, on the basis of which it followed:
A troy ounce of gold costs $35;
For participating countries, stable exchange rates are determined;
National banks support the exchange rate of their country, in relation to the main currency, with the help of foreign exchange interventions;
Exchange rates can only be changed through revaluation (increase in the exchange rate of the national currency against the currencies of other countries) or devaluation (decrease in the gold content of the monetary unit under the gold standard)
The main links of the system were also organized: the International Monetary Fund and the International Bank for Reconstruction and Development. These organizations provided loans in foreign currency to support unstable currencies. They controlled compliance with the rules by the participating countries, ensured monetary cooperation.
As a result of the conference, the United States received foreign exchange advantages, "pushing" its previously dominant competitor - Great Britain. This contributed to the establishment of the Dollar Standard. In the middle of the 20th century, America concentrated 70% of the world's dollar reserves on its territory. The dollar, a currency converted into gold, has become the basis of currency parities, practically the main means of international settlements, reserve assets and foreign exchange interventions.
The national currency of the United States has essentially become the world's money.
However, this system could only function as long as America's gold reserves ensured that dollars were exchanged for gold. The collapse of the dollar was a matter of time. The American "mountains of gold" were melting, despite all the efforts of the American government. It was very problematic to make a direct exchange: this process took place exclusively at the state level, and only at one point - in the US Treasury. However, the situation nevertheless got out of control: from 1949 to 1970, gold reserves in the United States more than halved - from 21,800 tons to 9,838.2.
French President Charles de Gaulle put an end to this "unfortunate metal leak" and it is this "strategic event" that is described above.
Additional reasons for the crisis:
The currency crisis of 1967 coincided with a drop in economic growth;
Rising inflation had a very negative impact on the ability of firms to compete. "Hot" money was speculatively moved due to "rate distortions", which, in turn, appeared due to different inflation rates in different countries.
The currency crisis escalated in the 1970s due to speculation. The dollar appeared in abundance first in one country, then in another, causing economic instability.
Currency fluctuations were also exacerbated by chronic deficits in some countries and surpluses in others.
Failure to comply with the principles of the Bretton Woods system. The economy of the USA and Great Britain was weakening and they tried to compensate for the decline by issuing national currencies, this was contrary to the interests of other countries.
The influence of transnational corporations (TNCs). TNCs are organizations that have short-term assets in different currencies. They can exceed the reserves of the banks of the countries in which they are located, thereby eluding national control. TNCs are also involved in currency speculation on a large scale.
Thus, there was a need to revise the existing monetary system. Its principles ceased to correspond to the reality of that time.
A completely new currency order, taking into account the transition to floating rates, was secured by agreements signed at a conference in Kingston.
The amended IMF Charter confirms that the currencies of various countries are not tied to gold, and, accordingly, excludes the possibility of establishing a fixed ratio of currency pairs based on the gold parity. Thus, the Jamaican monetary system replaced the Bretton Woods.
The consequences of abandoning the gold standard were not long in coming. In economic relations between world states, the balance has been sharply disturbed. Lending surged as large amounts of US dollar exports remained in the hoards of central banks around the world.
American lending grew non-stop, and the participating countries began to accumulate dollars. The rest of the world also accumulated "green paper", because if there were few dollars and the reserves did not grow or even fell, speculators could bring down the currency of this country by depreciating it.
The strong inflow of the US currency around the world contributed to the increase in the volume of world credit, which continued to grow until 2007. Banks were constantly trying to raise profits, lending was in full swing.
America, handing out its own hard currency to the whole world, has popularized globalization and free trade. States spent money "right and left." In the 1990s, the foreign trade deficit crept up to a critical point, but absolutely no action was taken to correct it.
There is, of course, nothing wrong with free trade. In theory, each country produces a certain useful product and then exchanges it for a useful product of another country through commodity-money relations. However, such a scheme is only possible with the functioning of the gold standard. When such relations were being formed in the world, it was difficult to imagine that in the future everything would turn upside down and mutual settlements would be made with the help of unsecured money created on the initiative of one country.
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332. Monetary reform- it:
A. Complete transformation of the country's monetary system.
B. Long-term government policy for you
embossing metal money with paper money.
C. Whole or partial change in the country's monetary system
us.
D. Process of loss of monetary functions by gold.
333. The purpose of the monetary reform is:
A. Cosmetic replacement of circulating banknotes,
giving them a more convenient format and colors,
degree of protection.
B. Stabilization of monetary circulation or simplification of the
conditions for its functioning.
C. Carrying out a set of activities aimed at
appreciation of the national currency
threads.
D. Changes in the national price scale.
334. The main methods of stabilizing money circulation
and currencies are:
A. Revaluation, devaluation, stagnation, contribution.
B. Inflation, deflation, stagnation, income policy.
C. Nullification, standardization, unification, denomina
tion.
D. Nullification, devaluation, revaluation, denomination.
335. Devaluation involves:
A. Reducing the gold content of the monetary unit or its
b.
and the introduction of a new currency.
336. In the course of the monetary reform, the replacement of the old banknotes
kov on new:
A. It is always carried out.
B. It is carried out only in case of devaluation of the national currency.
C. May not be conducted.
D. It is carried out only when the national currency is revalued.
fierce.
337. In the case of the circulation of signs of value, the devaluation of the national
currency means:
A.
C. An increase in its official exchange rate.
D. Depreciation of its official exchange rate.
338. Nullification involves:
A. Increasing the gold content of the monetary unit or
its official exchange rate.
official exchange rate. .
C. Consolidation of the current price scale in the country.
D. Cancellation of a severely depreciated currency
and the introduction of a new currency.
339. Method of limiting money demand through money-cre
dietary and tax mechanisms by reducing government
expenses, increase in the interest rate for a loan, increase in
denial press, limiting the money supply, is called:
A. Revaluation.
B. Deflation.
C. Devaluation.
D. Denomination.
340. Revaluation involves:
A. Increasing the gold content of the monetary unit or
its official exchange rate.
B. Reducing the gold content of the currency or its
official exchange rate.
C. Consolidation of the current price scale in the country.
D. Cancellation of a severely depreciated currency
and the introduction of a new currency.
341. Demonetization is:
A. Depreciation of the official exchange rate of the currency
values in relation to foreign currencies.
B. A set of measures to limit monetary demand
sa through the monetary and tax mechanisms
the reduction in government spending, increase in
interest rate for a loan, increased tax pressure,
money supply restrictions.
C. Process of loss of monetary functions by gold.
D. Consolidation of the current scale in the country.
342. With the circulation of valuable money, the devaluation of the national
cash currency meant:
A. Reducing its gold content.
343. A denomination is:
A. Cancellation of a severely depreciated currency
and the introduction of a new currency.
its official exchange rate.
C. Enlargement of the current price scale.
D. Reducing the gold content of the monetary unit or its
official exchange rate.
344. When circulating signs of value, the revaluation of national
currency means:
A. Decrease in its official exchange rate.
B. Enlargement of the current price scale.
C. Reducing its gold content.
D. An increase in its official exchange rate.
345. Anti-inflationary policy is a comp
lex mere by:
A. Increasing the money supply in circulation with the aim of
indications of production stagnation.
B. Gradual conversion of galloping inflation into hyper
inflation.
C. Import promotion.
D. State regulation of the economy, directed
nomu to fight inflation.
346. Ruble revaluation is beneficial for Russians:
A. Exporters, because per unit of foreign exchange earnings
B. Importers, because per unit of foreign currency
ruble equivalent.
C. Exporters as they spend less ruble eq
vars abroad.
to purchase goods abroad they will have to spend pain
ruble equivalent.
347. The purpose of the anti-inflationary policy is:
A. Establishing control over inflation and acceptable to
national economy growth rates.
B. Establishing total control over prices and income
mi, production and distribution of products.
C. Changing the structure of the money supply, devaluing
minted metal coins and banknotes of small denominations
stva and replacing them with banknotes of a larger denomination.
D. Prohibition of cash circulation and its
local replacement by non-cash money circulation.
348. In the circulation of valuable money, the revaluation of the national
cash currency meant:
A. Reducing its gold content.
B. Increasing its gold content.
C. Cancellation and replacement with a new currency.
D. Consolidation of the current price scale.
349. The method of stabilizing money circulation associated with
canceling a heavily depreciated currency and introducing
new currency is called:
A. Devaluation.
b. Nullification.
C. Denomination.
D. Revaluation.
350. The confiscation currency reform presupposes:
A. A complete sale of the country's gold and foreign exchange reserves.
B. Freezing and cancellation of deposits, establishing
strict parameters for the exchange of old banknotes for
new.
C. Establishing a limited period for the exchange of old money
new signs to new ones without limiting the amount of exchange.
D. Complete retirement of a severely impaired asset
national currency and introduction into circulation as
legal tender and legal tender over
strong foreign exchange.
351. Income policy as a method of anti-inflationary policy
ki suggests:
A. Parallel control of prices and wages
business of their growth.
B. Total refusal of the state to regulate the price level
and wages in the country.
C. Restriction of money demand through monetary
and tax mechanisms by reducing government
expenses, higher interest rates on loans, increased
niya tax press, limiting the money supply.
D. Consolidation of the current price scale in the country.
352. The method of stabilizing money circulation associated with
a decrease in the gold content of the monetary unit or its official
real exchange rate is called:
A. Denomination.
B. Revaluation.
C. Devaluation.
D. Deflation.
353. Deflation is:
A. Parallel control over prices and wages
by completely freezing them or establishing pre
business of their growth. %s
B. The process of loss of monetary functions by gold.
C. Method of limiting money demand through monetary cre
dietary and tax mechanisms.
D. The "strike out zeros" method, i.e. upscaling
prices.
354. Enlargement of the current scale of prices by evidence
em about holding:
A. Denominations.
B. Deflation.
C. Nullifications.
D. Revaluations.
355. The method of stabilizing money circulation associated with
an increase in the gold content of a monetary unit or its office
the social exchange rate is called:
A. Devaluation.
B. Denomination.
C. Deflation.
D. Revaluation.
356. Devaluation of the ruble is beneficial for Russians:
A. Exporters, as they spend less ruble eq
vivalent per unit of foreign currency for the purchase of
vars abroad.
B. Importers, because they receive more ruble
equivalent per unit of revenue in foreign currency with
selling goods abroad.
C. Exporters, because per unit of foreign exchange earnings
they receive a larger ruble equivalent.
D. Importers, because per unit of foreign currency
for the purchase of goods abroad, they will have to spend less
ruble equivalent.
357. Match the indicated characteristics
specific methods of stabilizing money circulation and currencies.
358. Establish the conformity of the indicated measures with specific methods of stabilizing monetary circulation.
359. A comprehensive policy for the stabilization of monetary circulation is based on the implementation of:
A. Deflation and income policy.
B. Denominations and demonetizations.
C. Deflation and denominations.
D. Devaluations and revaluations.
360 ......... changes when a denomination is carried out in the country to
national currency.
Revaluation (restoration) — recovery former gold content of the currency or increase the solvency of the national currency.
The revaluation limits the inflow of foreign speculative capital into the country and makes it possible to restrain the increase in the money supply in circulation and slow down the growth of domestic prices.
For example, after the First World War during the monetary reform of 1925-1928. in England, the pre-war gold content of the pound sterling was restored. After the Second World War, the revaluation was carried out by raising the official exchange rate against the dollar, and then an increase in the gold content of the monetary unit was registered.
Devaluation
Devaluation- official decrease in the gold content of the monetary unit or its exchange rate (decrease in the purchasing power of the national monetary unit in relation to foreign currency).
The devaluation officially consolidates the actual depreciation of paper money that has already taken place in the context of inflation. In 1998, they eliminated the foreign economic imbalance, lowered the level of domestic prices in the country compared to world prices and made the economy more competitive, lowered the level of .
Devaluation - the depreciation of the national currency in relation to foreign. The terminology used to characterize changes in the monetary unit does not always correctly assess the content of such measures. For example, carrying out a denomination, as a rule, means a decrease in the nominal expression of issued banknotes. Such an assessment is practically acceptable for characterizing the denominations carried out in our country. This applies to the denomination of 1922, when the ruble of the 1922 issue replaced 1000 previously issued banknotes, and also in 1923, when the newly issued notes were related to the signs of the 1922 sample as 1: 100.
Subsequently, in 1961, the previously issued monetary units were replaced in a ratio of 10: 1 to the unit of 1961. Such a measure was a denomination, which amounted to a change in the nominal expression of the monetary unit, which was important mainly for monetary circulation within the country. However, simultaneously with the denomination, the gold content of the monetary unit was reduced by 4.5 times. It could not be characterized as a denomination, but was an independent measure, which was related mainly to transactions with foreign states.
The name of the denomination is not quite accurately given in the Decree of the President of the Russian Federation of August 4, 1997 "On changing the nominal value of Russian banknotes and the scale of prices." Denomination is a method of "crossing out zeros", i.e. consolidation of the scale of prices. In Russia in 1998, the denomination of the ruble was carried out in the ratio of 1: 1000 old rubles. In accordance with the Decree, the denomination of the face value of banknotes, and not the monetary unit, was provided, while the denomination applies not only to cash banknotes, but also to money of non-cash circulation.
Denomination
Denomination- Strengthening by the state of its monetary unit, reducing the nominal value of banknotes (crossing out zeros - enlargement of the scale of prices by crossing out zeros).
Denomination is used to streamline monetary circulation and simplify settlements. At the same time, old issues of banknotes are exchanged for new issues of paper money, expressed in larger units of account.
In Russia, on August 17, 1998, the ruble was devalued almost four times, namely, instead of the exchange rate of 6.1 rubles. for 1 US dollar a new rate of 24 rubles was set. per US dollar. During the financial crisis of 2009, the gradual depreciation of the ruble led to the fact that 1 US dollar costs 36.7 rubles. It should be borne in mind that changes, and above all the depreciation of the ruble, are accompanied by a number of consequences, including:
- increased interest in increasing exports, since a large amount in rubles can be received per unit of foreign exchange earnings;
- rising prices in the domestic market, especially for imported goods, which may affect the deterioration of the financial situation of the population;
- a decrease in the value of ruble savings (cash and money kept in banks);
- worsening conditions for importing equipment.
All this should serve as an incentive for the state to take certain measures to eliminate the negative consequences of the decline both for enterprises and for the population.
Monetary reforms in Russia
- production growth, contributing to an increase in the supply of goods and limiting the possibility of price increases, which is of paramount importance for maintaining the stability of the monetary unit;
- deficit-free budget, which makes it possible to do without the use of money emission and attracting a loan to cover budget expenditures, due to which there is a limitation of effective demand and its possible impact on price growth;
- availability of sufficient gold and foreign exchange reserves, allowing to maintain the stability of the national currency, and, if necessary, to use such reserves for the import of goods, to increase their supply on the market.
The significance of each of these factors in the implementation of various monetary reforms is not the same, only if all these prerequisites are present, the implementation of reforms can be successful. So, during the implementation of the Witte reform in Russia in 1895-1897. there were necessary prerequisites in the form of production growth and a practically deficit-free budget. However, since this reform provided for the transition to the free exchange of banknotes for gold, the accumulation of a sufficient gold reserve acquired particular importance. To solve this problem, the slogan “We won’t finish it, but we’ll take it out” was proclaimed, which made it possible, thanks to an increase in exports, to accumulate the necessary gold reserves and successfully complete the monetary reform.
Monetary reform 1922-1924
The next monetary reform in our country was carried out in 1922-1924. and was aimed at eliminating the negative consequences of the First World and Civil Wars that had developed in the monetary sphere and, in particular, the withdrawal from circulation of a rapidly depreciating monetary unit.
Despite the absence of the necessary prerequisites for the implementation of monetary reform, conditions arose that required its speedy implementation. They consisted in the fact that foreign currency began to function in circulation to an increasing extent, displacing the rapidly depreciating banknotes used. Therefore, the reform was launched by the end of 1922 in the form of the issuance of chervonets. However, due to the lack of necessary conditions, the reform was not completed immediately, but only at the beginning of 1924.
It was important that by this time there was an increase in production, especially agricultural, and the state had a relatively sufficient gold and foreign exchange reserve at its disposal. At the same time, there was a significant budget deficit, which was covered by the issue of banknotes. Overcoming the budget deficit was delayed until the beginning of 1924, which determined the duration of the reform.
Monetary reform of 1947
The next monetary reform in our country was carried out in 1947. It was intended to eliminate the consequences of the war of 1941-1945. in the sphere of monetary circulation, in which there was an excessive amount of money; normalize the money supply; create a stable monetary unit, especially since the country retained a rationing system for the distribution of products, in which products were sold at reduced prices, and there was commercial trade without the use of rationed distribution, where goods were sold at inflated prices. Therefore, the reform provided not only the use of a new monetary unit, but also the abolition of the card system, the normalized distribution of products and the transition to trade at uniform prices.
By this time, the country had the appropriate prerequisites for reform, including an increase in production, budget revenues and expenditures were practically balanced, and there was a sufficient gold and foreign exchange reserve. Nevertheless, the originally planned reform in 1946 was postponed to 1947 due to a poor harvest in 1946; a good harvest in 1947 contributed to the reform.
Monetary reform of 1961
In 1960, a decision was made to change the scale of prices again and increase the gold content of the ruble from 0.222168 g of pure gold in 1950 to 0.987412 g of pure gold in 1961, i.e. more than four times.
The change in the scale of prices from January 1, 1961 consisted in the fact that all funds, internal debt, cash incomes of the population, prices and tariffs were recalculated in the ratio of 10 old rubles to 1 new ruble. Tickets of the State Bank of the USSR were issued in denominations of 100, 50, 25 and 10 rubles. and treasury notes 5, 3 and 1 rub. New coins entered circulation: 1 ruble, 50, 20, 15 and 10 kopecks. from a MS-nickel alloy and 5, 3, 2 and 1 kopecks. from brass. The exchange of money was carried out for three months: from January 1 to April 1, 1961.
In 1991 - 1993 in connection with political and inflationary processes and the collapse of the USSR, 50- and 100-ruble banknotes of bank notes of the USSR were first replaced. Officially, the need for this reform was explained by several reasons:
- in the former republics of the USSR, there were many savings in Soviet money, and these savings could increase inflation in Russia;
- many counterfeit banknotes of large denominations circulated in the country;
- it was necessary to seize illegal capital, which was stored in large denominations.
After this reform, prices set by the state rose. On January 1, 1992, coupons were canceled and prices were declared free. After that, prices and inflation began to rise rapidly.
At the first stage, the Central Bank of the Russian Federation carried out several successive issues of banknotes of higher and higher denominations. In 1992, the first banknotes of the Central Bank of the Russian Federation in 5,000 and 10,000 rubles appeared in circulation, in 1993 - a new series of banknotes in denominations of 100, 200, 500, 1000, 5000, 10,000 and 50,000 rubles. From July 24, 1993, all bank and treasury notes of the USSR issued in 1961 - 1992 and notes of the Central Bank of the Russian Federation in 5,000 and 10,000 rubles. 1992 sample were withdrawn from circulation in the territory of the Russian Federation. In 1994, mainly in order to protect them from forgery, modified banknotes of the Central Bank of the Russian Federation were issued in 5,000, 10,000 and 50,000 rubles. 1993 sample, but on paper of a different color for each denomination and with a modified watermark and improved printing.
In 1997, a decision was made to enlarge the monetary unit, i.e. ruble denominations. This was due to the fact that there was a slight increase in the country's gross national product, and inflation almost approached normal.
The reform of 1998 consisted in the enlargement of the ruble by 1000 times, and, unlike previous reforms, there were no strict restrictions on the terms and amounts of money exchange. Denominated and non-denominated ("new" and "old") money were in circulation simultaneously throughout 1998.
The experience of monetary reforms in Russia confirms that the required prerequisites for their implementation are the growth of production, the absence of a budget deficit, the presence of gold and foreign exchange reserves, although each of the reforms carried out differed in its own characteristics. The general requirements for reforms remain important.