What Is Money Circulation?

Currency circulation refers to the form of currency movement caused by commodity circulation. It manifests as a continuous movement of currency as a means of circulation and a means of payment in the process of commodity circulation. As Marx said: "The form of movement that is directly conferred on money by commodity circulation is that money constantly leaves the starting point, that is, money is transferred from one commodity owner to another, or in other words, currency circulation." (The Complete Works of Marx and Engels, Vol. 23, p. 134) Because commodity circulation is the premise of currency circulation, and currency circulation is a reflection of commodity circulation, currency circulation is determined and restricted by commodity circulation. [1]

Currency circulation

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Currency circulation refers to the form of currency movement caused by commodity circulation. It manifests as a continuous movement of currency as a means of circulation and a means of payment in the process of commodity circulation. As Marx said: "The form of movement that is directly conferred on money by commodity circulation is that money constantly leaves the starting point, that is, money is transferred from one commodity owner to another, or in other words, currency circulation." (The Complete Works of Marx and Engels, Vol. 23, p. 134) Because commodity circulation is the premise of currency circulation, and currency circulation is a reflection of commodity circulation, currency circulation is determined and restricted by commodity circulation. [1]
Currency in circulation
(A) currency circulation
Currency circulation is essentially
In reality, commodity circulation and currency circulation are relatively independent. Currency circulation can also affect commodity circulation. The differences between the two are mainly reflected in the following: First, the exchange of commodities and currency is not mandatory. Commodity circulation determines currency Circulation is conditional; the second is the inconsistency in time between commodity circulation and currency circulation, and the conversion of commodities into money and currency into commodities is two different processes; the third is the inconsistency in quantity between commodity circulation and currency circulation The currency circulation is always less than the commodity circulation, and the determinants of commodity circulation and currency circulation are also different.
Although currency circulation is determined by commodity circulation in essence, commodity circulation is reflected in currency circulation and realized through currency circulation. Whether currency circulation is normal and stable directly affects commodity circulation and national economic operation. .

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