What is the difference between credit money and proxy money?

1. The definitions are different.

Credit currency. Credit money is prescribed by national law, and compulsory circulation does not play an independent monetary function on the basis of any ***.

currency. At present, the currencies issued by countries around the world are basically credit currencies. Credit money is a credit circulation instrument provided by a bank.

Proxy currency: Proxy currency is a currency that circulates on behalf of metal currency, and the characteristic of proxy currency is that the value it contains is lower than the value of the currency, but it can be freely exchanged with the currency it represents, and at the same time participate in circulation with the metal currency. Such as the "Jiaozi" issued in the Song Dynasty in China.

Huizi", as well as "bank bills" issued by capitalist banks, etc.

2. The causes are different.

Credit money: In the thirties of the twentieth century, there was a worldwide economic crisis, which caused panic in the economy and financial chaos, forcing the major capitalist countries.

Successively out of the gold standard.

and the silver standard, the paper money issued by the state could no longer be exchanged for metal money, so credit money came into being.

Proxy Money: The possibility of proxy money is that money, as a medium of exchange, is only a means of exchange, not an end of exchange. For traders, what they care about is not whether the currency itself has value, but whether it can act as an intermediary. Just like Marx.

Money is in circulation, "just a fleeting element."

It will soon be replaced by something else. Therefore, in the process of money changing hands, the mere existence of the symbol of money is sufficient. This creates the possibility of replacing real money with value symbols or proxy currencies. The more complete form of alternative currency is paper money.

3. The characteristics are different.

Credit currency: is the value symbol of money; Credit money is debt money; Credit money is mandatory; The state controls and administers credit money.

Proxy currency: Proxy currency generally refers to the metal currency or metal bar made of paper in exchange for physical objects, and its own value is the value of the currency it replaces.

1. The nature is different.

Substitute currency,** or paper money issued by a bank to perform the functions of a means of circulation and payment in place of metallic money.

Credit money is a currency that is issued and created through a credit process with credit as a guarantee. Credit money is the product of the further development of alternative money, and it is the form of money adopted by almost all countries in the world, and it can be said that credit money is a direct consequence of the collapse of the metal money system.

2. The characteristics are different.

The advantages of substitute currency over physical currency are mainly as follows: the cost of printing paper money is lower than that of minting metal; It avoids the wear and tear of metal currency in circulation, and even intentional grinding, which can save money; Overcome the cost and risk of shipping currency. Of course, substitute currencies also have some disadvantages, such as being easily damaged and easy to counterfeit.

Credit money has the following characteristics: it is a symbol of the value of money; Credit money is debt money; Credit money is mandatory; The state controls and administers credit money.

3. The causes are different.

The reason why this kind of banknote can circulate in the market, and play the role of a medium of exchange in a formal way, is that it is fully prepared, and it can also be freely exchanged for metal or metal currency to the issuing unit.

Substitute currencies first appeared in the United Kingdom. After the Middle Ages, English goldsmiths kept gold and silver currency for their customers, and they issued receipts in the form of promissory notes, which could be circulated in the field of circulation; These receipts are readily available for redemption when needed. This is the original proxy currency.

Credit money was created and developed with the development of the capitalist commodity economy. In the case of gold and silver coinage circulation, due to certain restrictions on the amount of gold and silver mined, the increase in the amount of money cannot keep up with the increase in the demand for money in circulation.

At the same time, due to the expansion of the credit system, the function of money as a means of payment has been expanded, thus providing the possibility of creating credit money. Thus, on the basis of the increasing development of commodity production and exchange, credit money in the form of promissory notes, bank notes, cheques, and bills of exchange arose directly from the function of money as a means of payment.

The substitute money stage can be thought of as a transitional stage from the metal money stage of full value to the stage of the credit money system with little value in itself.

It not only retains the characteristics of the currency directly linked to a certain amount of *** under the metal standard, but also has the characteristics of credit money circulation under the credit standard.

The most essential differences between proxy money and credit money are:

Proxy currencies have not yet completely escaped the limit of *** quantityThe issuer of the substitute currency still has to ensure that the substitute currency is exchanged for the specified amount of currency at any time, so the substitute currency system has not completely gotten rid of the restriction on the amount of currency.

And credit money is made up ofNational law, forced circulationNot based on any ***A currency that functions independently as a currency. At present, the currencies issued by countries around the world are basically credit currencies. Credit money is a credit circulation instrument provided by a bank.

Its value is much lower than its monetary value, and it is not the same as a substitute currencyIt is completely decoupled from *** and no longer directly represents any ***

To put it simply, proxy currency is only a medium, and it cannot be used to buy goods on the market, but can only be purchased after being exchanged for ***; Credit currency can be used to buy goods directly, and it is not used and cannot be exchanged for other ***.

The main difference between credit money and proxy money is that it no longer represents any ***.

Proxy currency is an indirect currency, for example, we often find some vouchers or coupons when shopping, and credit currency is a kind of credit voucher that can be exchanged with any food.

Substitute currency is just a kind of representative, for example, the ancient silver ticket, you can exchange it for gold and silver, and he has a physical counterpart to the physical transaction. And credit money is based on a credit relationship, for example, paper money, which is based on national credit (bank credit, etc.), not real gold and silver.

Metal money, substitute money, and credit money can be said to be three different stages of monetary development.

Because metal money is a valuable commodity in its own right, it has developed into a fixed function as a general equivalent and has become money.

A proxy currency is a currency that is convertible for a currency whose face value is not equal to the value of the currency. and can represent real currency in circulation

Paper money, which replaces metal money to perform the function of means of circulation and means of payment, at this stage people pay attention to his ability to trade, because of a series of reasons such as convenience and carrying, merchants tend to him when conducting large transactions. But essentially, it's still based on metal money.

Credit money, on the other hand, is a period when the development of the commodity economy has reached a certain period, and metal money restricts the development of the economy because of its limited stock. In addition, it was discovered that the wear and tear of the metal currency did not depreciate it, so the credit national currency issued on the basis of national credit was produced. At this point, the value of money is negligible.

Looks like it's a little late......I don't know if I can't give it a point, but I can type it word by word.

Ahem, let's get to the point.

The form of money is from metal money to proxy money and then to credit money.

Metal money, as the name suggests, is a commodity that was fixed in gold and silver in the early days, and was made of ***.

Substitute currency is a transition from metal currency to credit currency, for a simple example, there were some goldsmiths in the early days, they kept ** for people, issued receipts to the people who deposited **, these people used receipts instead of real ** transactions, then, these depositors put in the financial institutions to keep the receipts of gold coins, is the substitute currency. The value of the proxy currency is measured by the value of the *** it replaces.

Later, the monetary standard replaced the gold standard and the silver standard, and credit money appeared.

Credit money is the product of the further development of substitute money, and it cannot be exchanged for metal money, such as the RMB and other paper money we use today, which are all credit money. It has only use value, not value in itself.

Metal currencies are also currently in circulation, such as coins of 1 yuan and 1 jiao. It is as much credit money as paper money.

The so-called substitute currency means that it is just a kind of representative, for example, the ancient silver ticket, you can exchange it for real silver, and he has a physical counterpart. And credit currency is based on a credit relationship, for example, the renminbi, which is based on the credit of the state, and you can't exchange the renminbi for gold or silver. Hope it helps.

Bank notes are a typical proxy currency.

Expansion: Alternative Currencies:

It is a currency that circulates in the market on behalf of real currency, and its face value is not equal to the value of the currency, but it can be exchanged. It is usually paper money, or convertible banknotes to be exact, issued by ** or banks in place of metal money.

2.Credit currency.

It is a currency that is prescribed by national law and is forced to circulate independently and independently performs monetary functions without any ***. At present, the currencies issued by countries around the world are basically credit currencies. Credit money is a credit circulation instrument provided by a bank.

Its own value is much lower than its monetary value, and unlike proxy currencies, it is completely decoupled from *** and no longer directly represents any ***.

You're right, the physical currency is yellow.

Gold making (there have been shells and cloth in history), electronic money refers to credit cards, and credit money is all kinds of paper money in your hand, RMB, US dollars, British pounds...

Let me explain it simply: physical money refers to the value of an item as money = its value as an item. 1 kilogram** Whether you make money or goods, the value is the same.

Credit currency is different, 10,000 US dollars is 10,000 yuan to make money, and to make items is a pile of paper, how much can it be worth? But with the credit given by **, everyone thinks that this pile of paper is worth $10,000.

Not much to say about electronic money, virtual non-physical currency.

The alternative currency is also paper money (and copper plate or something), but it can be exchanged directly for ***. This was the case with the pre-1946 dollar. Now you can't directly exchange **, so it has become a credit currency.

Regardless of whether the material of currency is gold, silver, copper, iron, and aluminum, it is also religious, political, national, or blood. All represent a superstition.