Monetary reform

Many shortcomings in the monetary sphere canto eliminate by such measures as: devaluation, exchange of money, denomination. However, all these measures do not cause long-term improvement, they do not eliminate the reasons that caused these or other shortcomings.

Radical elimination of negative phenomenais the monetary reform. This is a process that involves the transition to the use of a stable, stable monetary unit, which contributes to the development of economic relations in a market economy. Together with this, the importance of finance increases with the organization of the national economy.

The monetary reform is carried out in accordance withcurrent legislative acts. They are aimed at strengthening the state's financial system. In the course of the transformation, the bank notes are being withdrawn, in exchange they issue new banknotes. The monetary unit (or the gold content) also changes, the transition from one financial system to another is made. At the same time, conversions are carried out both in cash circulation and in non-cash settlements.

It should be noted that the monetary reform does notguarantees the subsequent preservation of the stability of the financial unit. After the transformation, it is necessary to regularly carry out measures to strengthen the new system. Equally important is the financial and credit policy. Its use allows you to make the necessary regulation of the financial industry.

According to the historical experience of transformations and taking into account the content of the changes themselves, three main prerequisites for the successful implementation of monetary reforms are singled out.

1. For the maintenance of a financial unit, the growth of production is of paramount importance. It helps to increase the volume of offers and limits the probability of price increases.
2. The absence of a deficit in the budget makes it possible to managewithout attracting money issue and loans to pay expenses. Due to this, solvent demand is limited and the likelihood of its impact on price increases.
3. If there are sufficient gold and foreign exchange reservesthe stability of the rate of national money is maintained. These reserves, if necessary, can be used to import goods and increase their supply in the market.

Of course, all of these factors have different meanings in carrying out various financial transformations.

For example, the first monetary reform in Russia1895-97 years was held against the background of increased production and almost no-deficit budget. But, in connection with the fact that the transformations in that period suggested a free exchange of banknotes for gold, the accumulation of gold reserves acquired special significance.

In 1922-24, a new monetaryreform in the country. Transformations were supposed to eliminate the negative consequences that had developed in the financial system after the First World War and the Civil War. However, there were no prerequisites for the successful implementation of the changes. However, certain conditions were created that required immediate implementation of the reforms. These conditions were in effect to increase the functioning of foreign currency in circulation. Gradually, it began to displace the depreciating national currency. In this connection, the transformations were started by the end of the year 22 with the release of chervonets. This monetary reform (due to the lack of certain conditions) was completed not immediately, but only by the beginning of the year 24.

The following transformations in the financial system instate were held in 1947. It should be noted that initially the changes were supposed to begin in 1946. But in connection with the poor harvest year, the monetary reform was postponed to the next year, which became fruitful and contributed to its successful implementation.

The need for the following transformationsemerged in the Russian Federation in the late 20th century. At that time, the value of money in the life of the population and the activities of enterprises was quite low. As a result, in 1998 the exchange rate of the state currency was changed, denomination was carried out.