The origin of the money: basic theories, causes, consequences

Money today are one of the most important economic institutions of mankind. The people are so accustomed to them that can not even imagine that there was a time when these pieces of paper and pieces of metal was not in sight. On the other hand, the origin and functions of money have long been interested in eminent economists and historians, many of whom, in considering this issue, seeking to find answers to many questions of the evolution of a society and the state.

All of the theory in which scientists try to shed light on the origin of money, can be divided into two groups – the rationalistic and evolutionary. Proponents of the first of them are with the perspective that the origin of the money associated with the informal agreement between people to facilitate the exchange of one good to another. The most popular rationalist theory used in antiquity, the middle ages and the Enlightenment, however, and currently, a number of economists argue that the money – it is, above all, a certain social Convention.

The Development of a number of Sciences at the turn of XVIII-XIX centuries has led to the fact that many provisions of the rationalists were subjected to quite serious criticism. They were replaced by supporters of the evolutionary concept of development of Institute of money. The most consistent conductors in the life of this concept were A. Smith, K. Marx, David Ricardo. In their opinion, the origin of the money and their evolution was directly associated with the development of commodity-money relations. This primarily related to the process complexity of the production, growth of labour productivity and the total value of the surplus product.

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The origin of the money in accordance with this theory was due to the occasional need of certain people not just to exchange one commodity for another, but also to obtain some profit which could be used in the future.

Evolutionary concept is very closely linked to the origin and functions of money. So, if in the beginning the money was easy and even accidental form of value, then they have become not only in the General form of value, but also a means of wealth accumulation, as well as in the main equivalent of all commodities, including labor.

The origin of the money – a long process that includes several quite independent stages. The General result is that money becomes the main form of value. And it concerns not only material things and objects, but also concepts such as labor, spiritual creativity, and public recognition. The origin of the money and their evolution, which is still ongoing, was the basis to divide the whole economic sphere goods and services that are in the coordinate system, relative cost, and money that serve as the universal equivalent.

The origin of the money, from the point of view of supporters of evolutionary theory have led to the following key trends. First, appearing as one of the varieties of goods, money, quickly stood out from this General mass, taking up a whole range of social relations. Secondly, the evolution of money – the process is very long, but at the same time – naturally, therefore, any order from above, they disappear can't. Thirdly, the most important role throughout the evolution of the money played by the state, for which they were one of the cornerstones of the existence of the Institute of government. The state has assumed such an important role, as the issue of funds, determination of their nominal value, even the definition of appearance money. Especially the role of the state in monetary policy increases at the moment when the rejection of the gold content of the money, and a lot is left to the mercy of the authorities.