Aggregation. First of all, it should be borne in mind that aggregated parameters are used in macroeconomics. The macroeconomic view of the national economy distinguishes in it three or four economic entities: the household sector, the business sector, the public sector and abroad. Each of these sectors is a collection of real economic entities. In […]
Tag: currency
Macroeconomics as a branch of economic science
Economic theory became a science after the classics substantiated that the main source of a nation’s wealth is not the amount of natural resources available to it, but an effective form of organization of the social economy. Since then, the subject of economic research has been the relationship between people regarding the production, distribution, exchange […]
Exchange rate theories
Exchange rate theories have a number of features that are characteristic of each of them: denial of the theory of labor value, the value of the exchange rate, the commodity nature of money; a men’s concept is an exaggeration of the role of the sphere of circulation when underestimating production factors. The subject is menus […]
Characteristics of the main elements of the monetary system
Currency content The basis of the national currency system is the national currency – the monetary unit of the state established by law. International settlements usually use foreign currency – banknotes in the form of banknotes, treasury tickets and coins in circulation and which are a legal means of payment in the territory of the […]
Stages of development of the world monetary system
Until 1914, the international movement of both long-term and short-term capital could be carried out almost without government control, since currency relations remained relatively stable, and inflationary processes in the international sphere were restrained. This happened due to the fact that interstate calculations were constantly adjusted by the gold standard mechanism. With the gold standard, […]