1. Monetary policy refers to the measures taken by the government or the central bank to influence economic activities, especially the measures to control the money supply and adjust interest rates. Used to achieve or maintain specific policy objectives-for example, to curb inflation and achieve full employment or economic growth. Operate and set the minimum reserve (minimum reserve) of banks directly or indirectly through the open market. Monetary theory and monetary policy are two sides of the same thing, one from the perspective of economic theory and the other from the perspective of policy measures.

Narrow monetary policy

Refers to the general name of various policies and measures adopted by the central bank to control and adjust the money supply or credit quantity, including credit policy, interest rate policy and foreign exchange policy. monetary policy

Broad monetary policy

Refers to all monetary laws and regulations and all measures adopted by the government, the central bank and other relevant departments that affect financial variables. (including financial system reform, that is, changes in rules, etc.). )

differentiate

The main difference between the two is that the policy makers of the latter include the government and other relevant departments, who often influence exogenous variables in the financial system and change the rules of the game, such as rigidly limiting the scale and direction of credit and opening up and developing financial markets. The former is that the central bank uses discount rate, reserve ratio and open market business in a stable system to change interest rates and money supply. At present, China implements a prudent monetary policy and a proactive fiscal policy.

kind

According to the impact on total output, monetary policy can be divided into two categories: expansionary monetary policy (active monetary policy) and tight monetary policy (prudent monetary policy). When the economy is depressed, the central bank takes measures to increase the money supply, which leads to a drop in interest rates, stimulates investment and net exports, and increases total demand. This is the so-called expansionary monetary policy. On the other hand, when the economy is overheated and the inflation rate is too high, the central bank takes a series of measures to reduce the money supply, so as to raise interest rates, curb investment and consumption, slow down or slow down the growth rate of total output, and control the price level at a reasonable level. This is the tightening monetary policy.

2. Market failure:

Causes of market failure

1, male * * * product

Products produced by economic society can be roughly divided into two categories, one is private goods, and the other is public goods. Simply put, personal items are items that only individuals can enjoy, such as food, shelter and clothing. And public goods are goods that members of society can enjoy. Strictly speaking, public goods are non-competitive and non-exclusive Non-exclusiveness means that one person's enjoyment of public goods does not affect another person's enjoyment, and non-competitiveness means that the increase of consumers will not cause the increase of production costs. For example, national defense is a public product. It brings people a sense of security. When citizen a enjoys national security, it will not affect citizen b's enjoyment of national security at all, and people can enjoy this security without spending money.

2. Monopoly

A certain degree (such as oligopoly) and complete monopoly on the market may make the allocation of resources inefficient. Correcting this situation depends on the power of the government. The government mainly improves the economic efficiency of enterprises by intervening in the market structure and enterprise organizational structure. This intervention belongs to the government's industrial structure policy.

3. External influence

Market economy activities are based on reciprocal transactions, so people's interests in the market are essentially money-related interests. For example, if Party A provides goods or services to Party B, Party A has the right to claim compensation from Party B. When people fall into this market failure.

This kind of economic activity that needs to pay or get money may also have some other effects on others, which may be beneficial or harmful to others. However, whether it is beneficial or harmful, it is not a buying and selling relationship. These influences on others outside the trading relationship are called external influences, which are also called externalities of economic activities. For example, the wastewater discharged from factories built by the river pollutes the river and causes harm to others. The factory discharges wastewater to make money by producing products. The relationship between the factory and customers who buy its products is a money exchange relationship, but the damage caused by the factory to others may not need to pay any compensation to others. This kind of influence is the external influence of factory production. When this influence is harmful to others, it is called external diseconomy. When this influence is beneficial to others, it is called external economy. For example, the flowers you put on the balcony may bring external economy to people passing by here.

4. Asymmetric information

Because participants in economic activities have different information, some people can use the information to cheat, which will damage legitimate transactions. When people's worries about fraud seriously affect trading activities, the normal function of the market will be lost, and the function of the market to allocate resources will be invalid. At this time, the market can't solve the problem entirely by itself. In order to ensure the normal operation of the market, the government needs to formulate some laws and regulations to restrain and stop fraud.

3、

Function of money

The concrete expression of the essence of money. With the development of commodity economy, it has gradually improved. In the developed commodity economy, it has five functions: value scale, circulation means, storage means, payment means and world currency. Among them, the most basic functions are value scale and circulation means. Price scale is a function used to measure and express the value of goods, and it is the most basic and important function of money. Just as the ruler for measuring the length has its own length, the weight for measuring things has its own weight, and the currency for measuring the value of goods is also a commodity and valuable; What is worthless cannot be used as a measure of value.

The expression of the intrinsic value scale of goods

Money, as a measure of value, represents the value of various commodities as a certain amount of money to show that the value of various commodities is the same in quality and comparable in quantity. The value of various commodities can be compared with each other, not because of currency, but just because the value of various commodities is the condensation of human labor, and they have the same quality, so they can be compared in quantity. The value of commodities is determined by the amount of socially necessary labor materialized in commodities. However, the value of goods is invisible and intangible, and cannot be directly expressed. It must be expressed through another commodity. In the process of commodity exchange, money becomes a universal equivalent, which can express the value of any commodity and measure the value of all commodities. As a measure of value, money measures the value of other commodities, and the value of all kinds of commodities is expressed as a certain amount of money, so money acts as the external value measure of commodities. The reason why money can perform the function of value scale is because money itself is also a commodity and the condensation of human labor. It can be seen that money, as a measure of value, is the internal measure of commodity value, that is, the manifestation of labor time. When money performs the function of value scale, it does not need real money, but only conceptual money. For example, 1 bicycle, worth 1 gram of gold, just put a label on it. When people are making this kind of value evaluation, as long as they have the concept of gold in their minds. Although the currency used to measure the value of goods is only conceptual currency, this conceptual currency is still based on real metal. People can't arbitrarily price commodities, because there is an objective proportional relationship between the value of gold and other commodities, and the realistic basis of this proportional relationship is the socially necessary labor consumed in producing them. Under the condition of a certain commodity value and a certain relationship between supply and demand, the value of commodity depends on the value of gold. The value of a commodity is expressed by a certain amount of money, which is the price of the commodity. Value is the basis of price, and price is the monetary expression of value. The function of money as a measure of value is to show various prices according to the value of various commodities. For example, 1 cow is worth 2 taels of gold, where 2 taels of gold is the price of 1 cow.

Multiple gold standard and single gold standard

In history, some countries once implemented the dual standard of gold and silver, and gold and silver were used as the measure of value at the same time. In this way, all goods will have two different forms of monetary expression, two prices. Using gold as a measure of value to express the price of goods is the gold price of goods. In the case of constant commodity value, commodity prices will change in the opposite direction to the value of gold itself, that is, once the value of gold decreases, commodity prices will increase accordingly; The higher the value of gold, the lower the commodity price. Using silver as a measure of value to express the price of goods is the silver price of goods. In the case of constant commodity value, commodity prices will also change in the opposite direction with the value of silver itself, that is, once the value of silver decreases, commodity prices will increase accordingly; The higher the value of silver, the lower the commodity price. However, the value ratio of margin to silver cannot remain unchanged, so there is no guarantee that the two prices can coexist safely. Any change in the value ratio of gold and silver will cause price confusion and disrupt the ratio between gold price and silver price. Practice shows that the duality of value scale is contradictory to its function. In the field of domestic circulation, there can only be one commodity as a measure of value. Therefore, in the history of capitalist currency, the multiple gold standard system was eventually replaced by the single gold standard system.

Edit the circulation method of this paragraph

The function of money as a medium of commodity exchange. In the process of commodity exchange, commodity sellers convert commodities into money, and then buy commodities with money. Here, money plays the role of medium of exchange and performs the function of circulation means. The function of money as a measure of value is the premise of its function as a means of circulation, and the function of money as a means of circulation is the further development of the function of value measure.

Barter exchange enters the circulation of goods.

Before currency appeared, commodity exchange was a direct barter transaction. After the emergence of money, it plays a media role in commodity exchange relations. Commodity exchange with money as the medium is commodity circulation, which includes two processes: commodity conversion into money (W-G) and currency conversion into goods (G-W). W-G is the stage of selling and the first morphological change of commodities. This stage is very important and difficult to achieve. Because, if the goods can't be sold, the original commodity form can't be converted into currency form, the use value and value of the goods can't be realized, and then the owner of the goods may go bankrupt. G-W instant purchase stage is the second morphological change of goods. Because money is the universal equivalent of all goods, if there are enough goods, you can buy them with money. This stage is relatively easy to realize. As a medium of exchange in commodity circulation, money performs the function of circulation means, breaking the direct barter and local restrictions, expanding the variety, quantity and geographical scope of commodity exchange, thus promoting the development of commodity exchange and commodity production.

currency circulation

As a means of circulation, money is constantly used as a means of purchase to realize the price of goods in the process of commodity circulation. After a certain circulation process, commodities will inevitably leave the circulation field and eventually enter the consumption field. However, as a means of circulation, money always stays in the field of circulation and is constantly transferred from the buyer to the seller. This constant change of hands forms the currency circulation. Currency circulation is based on commodity circulation and is the expression of commodity circulation. As a means of circulation, money needs a certain amount commensurate with the quantity of goods. In a certain period of time, the amount of money needed for commodity circulation is determined by the total price of goods for sale and the average speed of currency circulation (see the law of currency circulation). The amount of money needed for commodity circulation is directly proportional to the total price of commodities: the greater the total price of commodities, the more money needed for circulation; When the total price of goods is small, the amount of money needed in circulation is small. The amount of money needed in circulation is inversely proportional to the speed of money circulation: the faster the speed of money circulation, the less money needed in circulation; Slow currency circulation means that more money is needed in circulation. In a certain period of time, the amount of money needed for commodity circulation is equal to the total price of all commodities divided by the average speed of the same unit of money circulation, which can be expressed by the following formula:

Currency form as a means of circulation

As a means of circulation, money originally appeared in the form of gold bars or silver bars. Because the fineness and weight of metal bars are different, it is not convenient to check the fineness and weight every time you buy or sell. With the development of commodity exchange, metal bars are replaced by coins with a certain color, weight and shape. The emergence of coinage enables money to better play its role as a means of circulation. Coins will continue to wear and tear in circulation, and the name of money will gradually break away from its actual weight and become undervalued coins. As a measure of value, money can be conceptual money, but it must be sufficient; As a means of circulation, money must be realistic money, but it can be worthless. This is because money plays the role of circulation means, but it is only a fleeting medium, a coin with insufficient value, or even a currency symbol with no value at all, and can also be used to replace metal currency circulation. A token made of base metal such as copper is a coin with insufficient value. Paper money issued by the state and forced to circulate is purely a symbol of value. Paper money has no value, but only replaces metal money to perform the function of circulation means. No matter how much paper money is issued, it can only represent the amount of metal money needed in commodity circulation. If the circulation of paper money exceeds the amount of metal money needed for commodity circulation, the amount of gold represented by each unit of paper money will decrease, and commodity prices will rise accordingly. Because money, as a means of circulation, breaks the time limit of commodity trading, a commodity owner may not buy it immediately after selling it; It also broke the limit of buying and selling space. After the commodity owner sells the commodity, he can buy other commodities on the spot or buy any other commodities in other places. In this way, there may be a disconnect between buying and selling. Some commodity owners only sell but don't buy, and some commodity owners can't sell. Therefore, money, as a means of circulation, breeds the possibility of causing economic crisis.

Edit this storage method

Money leaves the circulation field and is stored as an independent value form and a general representative of social wealth. Money can perform the function of storage means because it is a universal equivalent and can be used to buy all goods, so it is necessary to store money.

The development of currency storage

As a means of storage, money is developing with the development of commodity production and circulation. In the early days of commodity circulation, some people changed the surplus products into money to save them. Storing gold and silver is regarded as a symbol of wealth and a simple form of money storage. With the continuous production of commodities, commodity producers have to constantly buy means of production and means of subsistence, but it takes time for them to produce and sell their own commodities, and they are not sure whether they can sell them. In this way, in order to be able to keep buying, he must store the money obtained by selling goods before, which is the money storage of commodity producers. With the expansion of commodity circulation, the power of money is increasing day by day, everything can be bought and sold with money, and currency exchange extends to all fields. Whoever has more money has more power, and the desire to save money becomes stronger. This is a kind of money storage of social power.

Money performs the function of value scale.

Can be a conceptual currency; As a means of circulation, money can be replaced by currency symbols. However, as a means of storage, money must be both real money and full-value metal money. So you can only use gold and silver coins or gold and silver bars as storage means. In terms of quality, money, as a general representative of material wealth, can be directly converted into any commodity, so it is infinite; However, in terms of quantity, the quantity of each specific currency is limited, and it only plays the role of a limited means of purchase. The contradiction between the finite quantity of money and the infinite quality forces money hoarders to accumulate money greedily. The greed of hoarders is endless. There may even be such a situation: "money hoarders sacrifice their physical enjoyment for gold idols" (Complete Works of Marx and Engels, Volume 23, page 153). Currency storage generally takes the form of direct gold and silver bars, or other storage forms, such as making gold and silver into ornaments and storing them.

The role of money storage

As a means of storage, money can spontaneously adjust the circulation of money and play the role of a reservoir. When the circulation of commodities in the market shrinks and there is too much money in circulation, some money will withdraw from circulation and be stored; When the circulation of commodities in the market expands and the demand for money increases, a part of the stored money will re-enter the circulation. There are different views on whether paper money can be used as a storage means. The traditional view is that only real and sufficient metal money can be preserved and used as a storage means. However, some people think that if the number of paper money issued does not exceed the amount of metal money needed for commodity circulation, paper money can represent the corresponding amount of metal and maintain stable social purchasing power. Under this condition, paper money can also perform the function of storage means. Of course, if the circulation of banknotes is too large, it will be impossible to maintain its original purchasing power, and people will not want to keep it. It can be seen that paper money is conditional and unstable even if it can perform the function of storage means.

Edit the payment method in this paragraph

As an independent value form, money performs its functions when it moves unilaterally (such as paying off debts, paying taxes, paying wages and rents, etc.). ).

Generation and characteristics

The function of money as a means of payment is to meet the needs of commodity production and commodity exchange development. Because commodity transactions are originally paid in cash. However, due to the different production time of various commodities, some are longer, some are shorter, and some are seasonal. At the same time, the sales time of various commodities is also different. Some goods are sold locally, and the sales time is short. Some goods need to be transported to other places and sold for a long time. The difference between production and sales time makes some commodity producers need to buy some goods on credit from other commodity producers before their own goods are produced or sold. The transfer of goods is divorced from the realization of price in time, that is, the phenomenon of credit purchase appears. After credit purchase, when the debt is paid off on the agreed date, money will perform the function of payment means. Money, as a means of payment, was initially caused by the credit purchase and prepayment of commodities, and then gradually extended to outside the field of commodity circulation. In the capitalist society with developed commodity exchange and credit, it has increasingly become a common transaction mode. Under the condition that money is the means of payment, the relationship between the buyer and the seller is not a simple one, but a creditor-debtor relationship. Equivalent goods and money no longer appear at both poles of the selling process. At this time, money is first used as a measure of value to measure the price of the goods sold. Second, money is a conceptual means of purchase, so that when goods are transferred from the seller to the buyer, no money is transferred from the buyer to the seller at the same time. When money plays a functional role as a means of payment, the purpose of transforming goods into money has changed. Generally speaking, commodity owners sell goods in order to exchange them for money, and then exchange the money for the goods they need. In order to preserve value, hoarders turn commodities into money; The debtor turned the goods into money in order to pay his debts. When money is used as a means of payment, the process of commodity form change has also changed. From the seller's point of view, the commodity changed its position, but he didn't get the money, which delayed his first morphological change. From the buyer's point of view, the second morphological change is completed before the commodity is converted into money. When money performs the function of circulation means, it sells its own goods first and then buys others' goods. When money performs the function of means of payment, buying other people's goods takes precedence over selling one's own goods. As a means of circulation, money is a fleeting medium in commodity exchange, and as a means of payment, money is the final result of the exchange process. The measurement standard of currency execution value is concept currency, and the currency execution circulation means can be insufficient currency or value symbol, but the currency as a means of payment must be real currency.

function

As a means of payment, money can reduce the amount of money needed in circulation, save a lot of cash and promote the development of commodity circulation. After currency performs the function of means of payment, the amount of money needed for commodity circulation can be expressed as: total price of commodity/average circulation times of the same unit of currency = the amount of money needed for commodity circulation. On the other hand, money, as a means of payment, further expands the contradiction of commodity economy. In the case of credit purchase and credit sale, there is a creditor-debtor relationship between many commodity producers. If one of the parties fails to pay it back at the due date, it will cause a series of chain reactions, which will "affect the whole body" and destroy the whole credit relationship. For example, if one of them fails to sell his goods within the prescribed time limit, he will not be able to pay his debts on time, and the interruption of a link in the payment chain may cause a currency credit crisis. It can be seen that the possibility of economic crisis has further developed after money is used as a means of payment. Credit currencies, such as bank notes, promissory notes, bills of exchange and checks, are generated from the function of money as a means of payment. With the development of capitalism, the more credit business develops, the greater the function of money as a means of payment, so that credit money occupies the field of large-scale transactions, while coinage is driven to the field of small-scale transactions. After the development of commodity production and monetary economy to a certain extent, not only in the field of commodity circulation, but also in the field of non-commodity circulation, money is regarded as a means of payment and an independent form of exchange value. Such as land rent, taxes, wages, etc. It is also paid in currency. Since money acts as a means of payment, it is necessary to accumulate money in order to repay debts when they are due. Therefore, with the development of capitalism, money storage, as an independent form of getting rich, has decreased or even disappeared, while money storage, as a means of payment, has increased.

Edit this world currency

Money performs the function of universal equivalent in the world market. Due to the occurrence and development of international trade, currency circulation transcends the scope of a country and plays a role in the world market, so currency has the function of world currency. As a world currency, it must be full-value gold and silver, and it must take off the regional coat of coins and appear in the form of gold nuggets and silver nuggets. Coins and banknotes that once played a role in various countries have lost their role in the world market. In domestic circulation, there is generally only one kind of monetary goods that can be used as a measure of value. Internationally, because some countries use gold as the measure of value and some countries use silver as the measure of value, gold and silver can be used as the measure of value at the same time in the world market. Later, in the world market, gold achieved a dominant position, mainly through gold to fulfill the function of value scale. In addition to the value scale, the world currency has the following functions: ① As a general means of purchase, one country directly uses gold and silver to buy goods from another country. As a general means of payment, it is used to balance the balance of international trade, such as paying international debts, paying interest and other unproductive payments. ③ Act as a means of international wealth transfer. As a representative of social wealth, money can be transferred from one country to another, for example, to pay war reparations, export monetary capital or transfer gold and silver to foreign countries for other reasons. At present, the main function of the world currency is to balance the balance of payments as an international payment means. As the world currency, the flow of gold and silver is twofold: on the one hand, gold and silver spread from the place of origin to the world market, absorbed by the circulation fields of various countries, compensated for the wear and tear of gold and silver coins, used as materials for decorations and luxury goods, and solidified into storage currency. This flow reflects the direct exchange of labor products between commodity producing countries and gold and silver producing countries. On the other hand, with the changes of international trade and foreign exchange market, gold and silver are constantly flowing between countries. In order to adapt to the circulation of the world market, every country must store a certain amount of gold and silver as a reserve. This world currency reserve increases or decreases with the expansion or contraction of commodity circulation in the world market. In capitalist countries, banks' gold reserves are often limited to the minimum necessary for special functions. Excessive money storage is a restriction on capital, which also indicates the stagnation of commodity circulation to a certain extent.