Banking. Credit money, its types (lecture notes)

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Banking. Credit money, its types (lecture notes)

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Credit money, their types

The expansion of commercial and bank credit in the economy, in conditions where commodity relations have acquired a comprehensive character, has led to the fact that credit money, which belongs to the highest sphere of the socio-economic process and is governed by completely different laws, has become the general commodity of contracts.

The immediate form of commodity circulation is C-M-C, that is, the transformation of a commodity into money and the reverse transformation of money into a commodity. For the circulation of goods, a specific commodity is allocated from their environment, endowed with monetary functions. In the conditions of developed capitalist production, when not the circulation of goods, but the circulation of capital becomes ubiquitous, the latter also allocates from its Environment a part of capital, which is given monetary functions.

In simple commodity production, circulation is separated from production, and commodities find social recognition only through their conversion into money. Under capitalist production, which is characterized by the formula M-C-M, circulation is only one of the moments of production. In this case, the product does not need to receive public recognition only through money. He finds it in the very process of production, acting as capital, which is a social relation. Money expresses here a social bond that was already established before it began to function.

As circulation develops, the money form becomes more and more fleeting. At the same time, goods are increasingly gaining social recognition not so much through money, but directly in the process of production. Therefore, the labor time contained in them already in the process of production begins to appear as socially necessary, as a result of which the commodities turn out to be capable of being correlated with each other already at this stage, and not after they have been previously equated with the money commodity in circulation. Thus, credit money arises when capital takes possession of production itself and gives it a completely different, modified and specific form than before. They do not grow out of circulation, like commodity-money in the pre-capitalist formation, but out of production, out of the circulation of capital.

Since the main object of exchange relations under capitalism is not the commodity as such, but commodity capital, the role of money is played not by the money commodity, but by money capital. Consequently, it is not money that appears in the form of money capital, but money capital in the form of credit money.

Credit money has gone through the following evolution: bill, accepted bill, banknote, check, electronic money, credit cards.

Author: Shevchuk D.A.

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