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Money. Credit. Banks. Nominalistic and metallic theory of money (lecture notes)

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Nominal and metallic theory of money

Nominalist theory (NT)

In NT, money, from the point of view of their essence, is defined as simple signs, devoid of intrinsic value, conditional units of account. It is concluded that the purchasing power of money does not depend on their material content and is determined by the face value. Those. a banknote of one hundred rubles by itself is worth much less, but it says on it that it is a hundred rubles and this denomination is taken as its value. Hence the name of this theory. The objective basis of NT is the development of monetary functions, the transition to monetary circulation, when money is accepted not by weight, but by the name indicated on them. The deviation of the value of money due to the wear and tear of coins from their internal commodity content gave reason to deny the commodity nature of money. The first nominalistic concepts appeared in Plato and Aristotle. Its adherents are J. Stewart, J. Berkeley, the ideas of this theory were shared by Keynes and his followers. In modern conditions, this approach to the essence of money is the most common.

metal theory

The opposite of nominalistic theory. Its main idea is the actual identification of money and treasures. metals Proponents of the metal theory believed that gold and silver by their nature were money.

One of the first representatives of this theory was N. Oresme - 14th century. The idea was picked up by mercantilists and, accordingly, all critics of mercantilism opposed it. During the period of the gold standard, this theory became widespread. However, in modern conditions the metal theory has no chance of spreading and developing.

Author: Shevchuk D.A.

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