The monetary system and its elements.

To date, no legal state in the world can exist without a monetary system. The monetary system and its elements represent the device of the monetary circulation of the domestic economy of the country, which was formed during five centuries of history with the subsequent approval of the legislation of the national government. The main difference of monetary systems in different countries is its universal monetary symbol.

At present, the monetary system and its elements are formed from structured types, bearing of which are a system of metal circulation based on real money (silver, gold, platinum coins, etc.) and a system of credit and paper circulation (the monetary component is replaced by the value symbol ). In turn, the world economy classifies the type of metal system into bimetallism and monometallism.

Bimetallism is characterized by the application of two standards of money equivalent - silver and gold. This kind of monetary system operated in the XVI-XVIII centuries, while there was a free coinage of an unlimited number of coins using both types of metal. This type of monetary system led to fluctuations in the economic situation in the market, because the use of two metals at once led to fluctuations in the price policy for goods and services. Therefore, with the development of capitalism, which required stable monetary circulation, led to a single transition to monometallism. Monometallism is characterized by the use of a single metal (silver or gold) as a universal equivalent. With the development of this type of monetary system, gold monometallism has acquired significant changes, divided into gold, gold and gold and gold standards. The gold coin standard was freely used inside the country, but was banned for external trade messages. At the end of the long World War I, this standard was canceled due to a sharp deficit of metal due to military expenditures. He was replaced by gold and gold and gold standards. These types meant the exchange of banknotes for gold bars or slogans (money for payment of foreign currency), which could also be exchanged for gold. But these standards were abolished after the global economic crisis, which led to the introduction of a single paper and credit circulation system . This system is based on the issue of unified banknotes in the country. The monetary system of Germany is a vivid example of the historical development of monetary circulation.

The international monetary system and its elements were formed in 1944 at a meeting of the monetary and financial conference of the UN organization in the United States in Bretton Woods, where it was decided to introduce an interstate gold standard. Certain rules were stipulated and fixed:

• Gold was recognized as the final means of settlement between countries that perform the function of world money, and also served as an estimated standard for public wealth.
• Along with the use of gold in the world economy, the United States and Britain monetary unit was introduced - the dollar and pound sterling.
• The market value of gold was set on the basis of the official value in the United States.
• National monetary units could be freely exchanged for dollars in central banks of the country, and then in gold. This exchange facilitated the possibility of multilateral settlement between countries.

As a result of the weakening of the external positions of the US market due to the depletion of gold reserves in the country, the international monetary system and its elements, which was based on the dollar's benchmark, was bankrupt. The dollar was replaced by reserve currencies - FRG, SDR, ECU and Japanese yen, and the dollar price for gold was officially canceled.