Commodity-money relations as an instrument for the development of social relations

The history of this relationship begins from ancient times. Surplus products were exchanged for other types of goods of subsistence economy and, thus, commodity-money relations arose. But initially there was no production. This relationship can be called commodity exchange. With the development of society and the division of labor, the production of goods appears, and this exchange becomes regular.

So, commodity-money relations are such relations that arise in society as a result of production and exchange of goods.

Until the appearance of a single exchange equivalent, the scheme of these relations was simplified. Excess goods were exchanged for other necessary goods in a certain proportion.

As a result of the exchange of goods , some of their types appeared, which began to play the role of a common equivalent. These were goods that were in high demand. This is the next stage in the formation of commodity-money relations. But they still can not be called full-fledged. There was a barter exchange, the economy was mostly natural.

The next stage was the emergence of a single equivalent for all peoples. Initially, its functions were performed by precious metals (silver or gold). Naturally, such relationships were not always convenient. There was a need for a unit of measurement of all types of goods in order to simplify the exchange. So gradually, money appeared.

At that moment, there was a transition from the "goods to the goods" scheme to the "commodity-money-commodity" scheme. So the commodity-money relations were born.

Money also has made its way of becoming. Initially these were metals. Then the official release of money began. Gold was chosen as the material, thanks to its properties (not to darken, not to rust) and a homogeneous consistency. Gold was one of the expensive and valuable metals, which also became the basis for choice. Originally produced full-fledged coins, but over time they began to cut and reduce the sample of metal. This was necessary to reduce the cost of the coinage itself. Then began to issue money from paper. They are also called defective, because the cost of their release is much lower than the one assigned. After that, coins from less noble metals were minted , which also lowered the cost of their production.

This process was the beginning of the development of forms of value.

I must say that commodity-money relations played a huge role in the development of society. They became the main stimulus in the emergence of links between individual layers of society, people and states. The markets that arose as a result of these relations became cities with time. The need for exchange and trade became the impetus for the development of shipping and transport. There was a written language and, as a consequence, the recording of trade transactions. Therefore, monetary relations are the engine of development of all stages of human activity.

Today, these relations have taken a more modern form. But we can not say that they are stable. As a result of their imperfections, crises occur that have a significant impact on the world community. But having reached the present level, commodity-money relations have passed a long way of development.

For the normal functioning of society, commodity-money relations must be subject to a certain law. The amount of money issued in circulation, ideally corresponds to the quantity of the goods and covers its cost. Only in this case there will be no inflation or an overabundance of goods unsecured by the money supply.

Summarizing, we can say that commodity-money relations are a necessary condition for the full development and normal existence of society and social relations.