Аннотация: A currency and a quasi-currency. An economic essay.
A currency and a quasi-currency. An economic essay.
After the victory-defeat of the Russian Empire in the war of 1877-1877, the exchange rate of the Russian ruble reached its lowest point - 66 silver kopecks.
This war was fought under Emperor Alexander II.
Under Emperor Alexander the Third , Minister of Finance Ivan Vyshnegradsky developed (tentatively - 1885 - 1887 - 1892) the foundations of a new financial and budgetary strategy.
In 1897, already under Emperor Nicholas II and under S.Yu. Witte, a decree on the minting of gold coins was issued. The golden ruble was adopted as the basis of the monetary system of Russia. One ruble was equal to 0.77 g of pure gold.
The golden ruble was in circulation until about 1914 (before the start of the First World War).
There were many problems in the Russian Empire - military defeats (1905), political instability, periodic famine in certain provinces - but the subjects - looking at the gold rubles - were imbued with faith in the stability of the state and in its prospects.
This historical example allows us to see certain important elements (symbols) and their meaning in the huge State Cause.
Among these State Symbols is the national currency.
Let's move on from this particular example to more general considerations.
The population has the right to count on effective governmental policy.
But if circumstances coincide, the state may find itself in a difficult position.
It's necessary to get out of a difficult situation honestly and with dignity. This is the way of the Statesmen - even if they are not very educated, if they are not very efficient and if they are not have enough fortune (luck).
Another thing is brokers.
Some citizen may unexpectedly discover that he was the legal owner of the property, but it turns out that this property without any compensation is 'excluded' from electronic databases. (This, it turns out, happened a year and a half ago). And the (former?) owner is left to ask himself: 'Am I the owner? Or am I not the owner?" So, this is how all are living: a citizen writes statements, statesmen are deeply thinking in the spirit of ancient philosophers ... And who cares about "this"?
But if it is so easy and simple to deal with property relations, then why not go further?
Let us assume that circumstances demanded additional money issue.
While maintaining honesty (and dignity) in the Cause of State, the value of the national currency gradually - or quickly - falls.
Both the state and all segments of the population bear their part of this heavy burden.
But brokers play not only for emission.
They are betting on honesty in the State Cause, for the dignity of the State, for the symbols of the State.
The unfavorable consequences of money emission will not disappear anywhere. One way or another, but these consequences will manifest themselves.
But why not try to maintain your authority, your reputation? Why not disguise the real exchange rate of the national currency? Why not "embellish" the situation?
Why not make it difficult to exchange the national currency - its exchange for world (and non-world) currencies.
In situation, when creating such difficulties, many people will not immediately understand up to what extent the national currency has fallen. Consequently, brokers hope to retain at least part of their reputation.
Honesty, the dignity of the State are at stake (what a trick!). The national currency itself is put at stake - as a symbol and as one of the basic elements of the State Cause.
One of the signs of a full-fledged (albeit falling) currency is the possibility of its free exchange for other currencies. What is the national currency in modern conditions without the possibility of its free exchange for other currencies?
The creation of obstacles to the exchange of the national currency for world (and other) currencies turns the national currency into a quasi-currency.
Bets are made! A new round of play has begun!
March 9, 2022 04:10
Translation from Russian into English: March 9, 2022 04:53.
Владимир Владимирович Залесский 'Валюта и квази-валюта. Экономический очерк'.
{ 2847. Валюта и квази-валюта. Экономический очерк.
MMDCCCXVII. A currency and a quasi-currency. An economic essay. }