Money and Economy (on the book by M. A. Portnoy “Money in National and World Economies”)

Abstract

The evolution of money’s nature and functions to evaluate prices of goods and services, to preserve and increase assets holdings as well as to serve as a means of payments is presented by the author in connection with the development of advanced economies. Сredit money superiority over commodity money has been proved. The truth of the statement is supported by the fact that commodity money had been practically displaced in advanced economies by the beginning of the XX century. The 1970-s changeover from Bretton-Woods to Jamaica system of currency payments marked the end of commodity money era on a global scale. The research of money’s nature and functions development is of special interest due to original presentation by the author of such globally acute problems as USA persistent deficit of trade balance and federal budget as well as US national debt rise. The author has presented the trends observed as appropriate for the global industry development. He has also advanced the idea of a new approach towards economy globalization to make the process controllable.