Money surrogates - what is it? What is their role in modern economic systems? How do they affect the economic life? This is an incomplete list of issues that we will discuss in the framework of this article.
The concept of
Monetary surrogates are special substitutes for official forms of money that have been put into circulation by business entities in order to make payments. According to some experts, they are an important criterion for judging the development of monetary circulation in any country due to their presence or absence. It should be noted that the money surrogates, although they perform the functions of means of payment, can not act as an object of savings, and also determine the proportions in the exchange of goods. A special feature of them (against the background of money) is that they do not have absolute liquidity due to the limited circulation. It is problematic to ensure their purchasing power due to the fact that they are accepted only in a discounted form. In other words, their real price is always slightly below par. This is not the least because of certain features. So, money of non-cash settlements is "taxed" by the commission on the part of the systems. And if the thing costs 100 virtual rubles, then it will have to pay 101, at least.
Why there were money surrogates?
The main reason for their appearance is the lack of banknotes, which are officially recognized. This may be the result of a too tight credit policy by the state (which is aimed at combating negative inflationary processes). To find out how well the economy is ensured, calculate the monetization ratio. It is defined as the percentage of the mass of money and the country's gross domestic product. As an example, we can cite the year 1990, when in Russia the coefficient, according to different estimates, fluctuated in the range of 12-20%. Although for normal functioning it should be at least 60%. As an additional reason for the emergence of money surrogates called the disruption of economic ties, which are particularly active in the 90s of last century.
Classification
What can be money surrogates? Depending on the specifics of their organization, the nature of the participants and a number of additional features, these substitutes are singled out:
- The state. This includes a treasury ticket, regional money, tax incentives and a number of other substitutes, the release and distribution of which is carried out under state control.
- Commercial. These include payments by promissory notes, drafting of receipts followed by mutual settlements and other similar forms of organization, which largely depend on the interaction of private structures.
- Other. This includes such substitutes as gasoline coupons, food, clothing, trade documents and many other similar elements of interaction.
Why are money substitutes used?
Especially relevant this issue was in the initial period of transition to a market economy. The following can be cited as answers:
- The replacement of money as a means of payment due to the fact that there was an acute shortage of cash. Problems in this case, and threw undeveloped cashless payments due to problems with the banking system. In general, the negative effect could be reduced if electronic money were introduced, but those were not available at that time.
- The presence of hidden losses of enterprises, which is especially actual during the transition to market methods of farming.
- Attempts to avoid numerous taxes, because of which the receipts of money resources to the budget decreased, and its deficit increased.
- The complexity of using a promissory note as a tool for commercial lending in the vastness of Russia.
- Inflationary processes, which, first of all, were associated with the release of prices and the transition to management on market conditions.
All of the above reasons and contributed to the fact that the money surrogates were very much able to develop as financial instruments for unsecured barter and commercial credit. So, for example, in order to pay non-payments to the budget for 1991-1996, the amount of which was estimated at billions of rubles, the Treasury bills were issued by the Ministry of Finance of the Russian Federation. Such means of payment allowed us to avoid a more sad situation.
Modernity
On the one hand, they, potentially, may be a weak point of our economy. But, along with this, one should not underestimate their structural importance, since their presence is dictated by economic reasons. Thus, the liquidation of monetary surrogates can lead to the loss of part of the savings, and also will have a negative impact on economic processes. Now we have actively used electronic money, there are a large number of payment systems. On the one hand, due to limited circulation, they do not have absolute liquidity, and in which case problems may arise with obtaining them. Also, do not forget that their real price is always below par. But, along with this, it should be noted that the one-stage liquidation of the order, which has already taken shape, is not possible.
The influence of surrogates
If we consider the 90-ies of the last century, then because of the use of money surrogates there was a significant difference in purchasing power. So, if you express in rubles, the prices could easily differ by a factor of 1.5-2. Of course, you can notice that this is observed now, when the bread in different ways stands in Tver and on Sakhalin. But it's one thing when we are dealing with transport pads, and quite another, when the food is sold in the neighboring shopping arcades. By the way, this influence led to the formation of a unique, relatively autonomous payment system on the territory of the Russian Federation, in which monetary surrogates still operate. So, it is possible to recall that our state employees who spend a lot of time traveling on cars issue gasoline coupons. On the one hand, this is not money, a person can not spend them uncontrolled. On the other - there are separate nuances of expenditure control. But, anyway, the ambulance rides, the police and firefighters too, so this system is quite justified in serving its purposes.
Treasury surrogates
They are used for settlements or for attracting additional funds to the state treasury. As an example, let's cite the following: a hypothetical country has a budget deficit of 2%. There are two options for action: either we take loans, or cut costs. Theoretically, the second option is more correct. But who told you that humanity acts rationally? Politicians are people who do not want to lose their ratings. Therefore, a special treasury ticket is being developed, its issue is stipulated (in what quantity, what denomination, interest, and so on). All this has state guarantees. On the one hand, these are reliable investments, but on the other hand they are not profitable. For example, for the hypothetical state under consideration, inflation is 12%, and the issued securities will yield only 7% of profit.
Hazards and Risks
Even at first sight it is clear that those who invest in them will only lose their savings. And if we take into account a number of other factors that relate to the objectivity of information evaluation, the situation will be sad in general (I mean that many economic experts consider inflation calculations using modern methods to be understated). Money and monetary circulation in this case is used as the basis of the financial life of the state, and surrogates allow to avoid negative consequences from their shortage.
Using e-money
If we talk about the market of the Russian Federation, here the main players are Webmoney and Yandex.Money. Of course, there are also banking systems for electronic payments, but due to a number of features we will not consider them. Last but not least, this is due to the fact that they are created as additional services of banking institutions. Then we are interested in electronic payment systems, which were created precisely for such purposes. In the world market the leading player is PayPal, but due to the fact that it is not represented in the Russian Federation, it will not be considered. But, in general, the principle of operation is the same, so that what is acting here can be successfully transferred to foreign analogues. So, what does the normal purchase process look like? A person comes to the seller, asks about the price of the goods, and then decides whether he needs it. If the answer is positive, then he gives him a certain number of monetary units and receives a product or service.
How do electronic surrogates work?
In this case, everything is somewhat more complicated. Initially, it is necessary to provide funds for the use of the intermediary (electronic payment system). Then the seller will make a request to her to find out if you have enough money. If the information is confirmed, then the necessary goods will be sent, and a certain amount will be debited from the account. That is, directly the money is not used in the process itself, although at the beginning of the action and at the end (when the seller will cash out the earnings) they are necessary. But in a number of actions, electronic substitutes are used instead. If we consider Webmoney, then it can be WMZ, WMR, WMU, WME, WMB and so on. As you can see, there are many options.
Barter and coupons
Let's consider at the end of this article another type of surrogate, as well as their role in the economy. By barter means the direct exchange of goods. As an example, one can change ten boxes of matches per loaf. This is the real barter. In cases when the economy of the country ceases to function and all ties collapse, this form of exchange allows supporting people's livelihood, at least by exchanging the goods that they manufacture. That is, the role of barter is great in cases of uncontrollable chaos, because it gives at least some kind of interaction. And in the future it can already grow into more stable bonds, only those already clothed in monetary-commodity relations. Coupons are used in cases where the state is going through difficult times, and resources are very limited - so much so that improper distribution can lead to certain human losses. Therefore, they are used to regulate the distribution of available resources. Then you can choose a more or less suitable size of supply. As an example, one can cite the situation of a hypothetical state when its agriculture has been severely damaged, and there is no money or opportunity to buy them abroad. Also coupons can be used to support the poor. But we do not meet such a practice in our country now. Thus, surrogates such as coupons and barter are indicators of the stability and sustainability of society. And the fact of their absence or stay at such a level that they can not be registered indicates that there are positive development trends.