Monetary systems

In general we can say that "monetary system", anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region. Set of mechanisms by which a government provides money "cash" in a country's economy. It usually consists of a mint, central bank, and commercial banks. Criterion, Standard, Touchstone, Measure, basis for comparison, a reference point against which other things can be evaluated, etc. legal tender, tender, stamp, something that can be used as an official medium of payment. Money is the most common medium of exchange, functions as legal tender. currency is the metal or paper medium of exchange that is presently used.

To know the monetary systems, we need to first access to the first concept of the monetary system, the monetary system known as the set of rules, which include the appointment of the monetary unit settling accounts, and those that control the issuance of cash and withdraw cash in the primary, or terminal from circulation in the community or state. The system includes all types of cash money in the state, also includes all financial institutions to the state, which shall have the authority and responsibility in the money creation and execution, in addition to all the laws, regulations and directives, and procedures governing the process of money creation and execution. For further understanding of the monetary system should look a little to the qualities of the monetary system, so that it can accommodate the idea more clearly.

I . quantitative management of cash supply

The ability of the monetary system to manage the quantity supplied of money, are the most important attributes of the core, where the system of monetary management that money, by the monetary authorities state, represented by the central banks or monetary institutions whatever its title, it varies from one country to another, in America, for example, no a central bank, but the Council of the U.S. Federal play this role, he or central bank in any other country, is the institution that is the greater responsibility for managing the two key in this regard, expansion or contraction in the quantity of money supply, or rolling, in order to achieve the desired balance and maintain it for the welfare of the community.

II.  the flexibility of various types of money

Good monetary system means that money traded in the state, you must be a high degree of flexibility, the ability to sense the contraction or expansion, (Money used as a mediator in the swap operations, and as a store of purchasing power, and as collateral for debt repayment). If the monetary authorities determine the quantity supplied of money, individuals in the community have a right to carry any amount they want money, and in any form they want, and if people want to swap paper money in the currency of other assistance, it must be available to them enough to achieve , and when they wish to withdraw their deposits (demand) must be financial institutions and banks in the financial position to achieve them so.

III.  equal in purchasing power for all types of coins

The ability of the monetary system to empower individuals, to convert any kind of money to another type easily, and without loss as a result of this conversion, for example, if someone has a coin help of ($ 1,000), then that person should be able to convert this currency to paper currency or cash deposit or any other currency, and the meaning of this is that the purchasing power of each type of money, you should be equivalent to the purchasing power of all other types of money.

IV.  stability in value

Good monetary system of stability in the value of money here and must take into account the other hand, price stability so keep the purchasing power of the currency stable.

V.  safety

The belief was for long periods of time that money safe is that money commodity only, or that those coins midwife to the conversion into gold or silver, but in the monetary systems of modern, has become most types of coins of all kinds almost safe, thanks to the government's guarantee of the different types of money, and governments seek always to ensure that the value or purchasing power of that money, and the stability of its purchasing power. It is worth mentioning that this confidence in the new money and legal, are no longer as they were years ago, at least among some intellectuals, economists, perhaps some of us read the book currency war and other writings published after the global financial crisis in 2007, these coins are no longer trusted as before, and are surrounded by some of the risks arising from the weakness of economies in support of those coins.

VI acceptance in foreign markets

Monetary system good and balanced should have had the ability to market his money in foreign markets, and that the purchase of goods and services or make investments or external in the form of purchase of foreign securities, and some countries have easy admission for its currency in the foreign markets, because the currencies of these countries widely accepted in foreign countries, and examples of the U.S. dollar, which is almost acceptable anywhere in the world, you can download the U.S. dollar and its travel to anywhere above the ground and be acceptable, you can use the U.S. dollar in any place other than the moon's surface.

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