The reform of the monetary economy, what is the reform of monetization

It is to send money but not things.

For example, the welfare fee is directly included in the salary accounting and distribution, and the festival materials have been talked about before, and it is estimated that they will all be converted into money and paid together with the salary, which may bring about a consequence of the increase in the wage level (inflated) after the individual income tax is accrued.

In the past, the benefits of many public institutions, such as buses, were changed to monetary subsidies, that is, you drove your own private car to work, and the company made up a certain amount of postage, which could save the maintenance and purchase costs of the car and improve efficiency. This type of reform also protects subsidies for houses, job consumption, and so on.

There are many definitions of monetization, and there are roughly several:

1) It means that the role of money as a means of exchange has been greatly strengthened, and the role of money has penetrated into various economic fields and links, and with the basic completion of the transition process, money has played an increasingly important role in economic development.

2) refers to the proportion of the exchange of all goods and services in a country's national economy, as well as the proportion of the entire production process, including input and distribution, through money and the trend of changes in this proportion.

3) refers to the expansion of the monetary economy to the non-monetary economy, that is, the increasing proportion of the part of a country's production, circulation and consumption that is traded through money.

4) Since the emergence of money, the economic system has gradually evolved from the operation of the pure real economy to the integrated operation of the real economy and the monetary economy, a process that economists call it"Monetization of the economy"。

With the deepening of the monetization of the economy, the development of credit and the emergence of various financial instruments, the financial nature of the entire economy has become increasingly prominent, which is called"Financialization of the economy"。

And China's monetization reform refers to:

In the past, many public welfare institutions, such as buses, were changed to monetary subsidies, that is, you drive a private car to work, and the company will give you a certain amount of fuel expenses, which can save the maintenance and purchase costs of the car and improve efficiency. This type of reform also includes subsidies for houses, job expenses, and so on.

The monetization reform is to change the benefits of many institutions in the past, such as buses, into monetary subsidies, that is, you drive a private car to work, and the company will give you a certain amount of postage, which can save the maintenance and purchase costs of the car and improve efficiency. This type of reform also protects subsidies for houses, job consumption, and so on.

Where the transportation, housing, and communication benefits provided by an enterprise to its employees have been monetized and reformed, the housing subsidy, transportation subsidy, vehicle reform subsidy, and communication subsidy issued or paid on a monthly basis and in accordance with the standard shall be included in the total wages of the employees, and shall no longer be included in the management of employee welfare expenses.

Now many places use this method, like our company in Shanghai, it is also like this, every month the salary is very high, including these travel subsidies, housing subsidies, transportation subsidies, communication subsidies, etc. are included in the salary, it is very convenient, in the expense reimbursement of this piece is very convenient,

To put it bluntly, it is to send money without sending things, such as directly incorporating welfare expenses into wage accounting and distribution, I have talked about festival materials before, and it is estimated that all of them will be converted into money and put into wages together, which may bring about a consequence of the increase in wage level (inflated increase) after the provision of personal income tax, which is also a problem that everyone is more concerned about!

Legal analysis: The main background is the establishment of the Bretton Woods system, the replacement of the pound by the US dollar, and a very important point is the collapse of the standard, the bankers, the wanton depreciation and appreciation of the currency, resulting in a series of financial problems.

Legal basis: "Measures of the People's Republic of China for the Administration of the Entry and Exit of the National Currency" Article 6 Anyone who transports, carries, or carries the national currency into or out of the country in the mail in violation of national regulations, Changshen shall be dealt with by the relevant state departments in accordance with the law; Where the circumstances are serious and constitute a crime, the judicial organs are to pursue criminal responsibility in accordance with law.

1. The increase in the demand for money caused by the expansion of the output and the scope of output;

2. Changes in demand structure and channels cause changes in monetary aggregates;

3. The reform causes changes in the demand for money;

4. The reform causes changes in the velocity of money circulation, which in turn affects the changes in the demand for money.

The impact of institutional changes on China's currency demand in China is mainly caused by the reform of the economic system. Before and after the magnificent reform of China's economic system, the monetary demand behavior of economic agents has undergone and continues to undergo historic changes, and the root cause of this change in behavior mechanism is the change of China's economic system.

Before the reform and opening up, residents' monetary receipts and expenditures were limited to the purchase of consumer goods, and their monetary demand was generally subordinate to the transactional monetary demand for the purpose of purchasing consumer goods. After the reform of the economic system, the economic function of the family has been greatly enhanced. Peasant households have become independent units of economic activity, and the development of various types of sideline businesses, industry, and commerce has brought about an unprecedented increase in the depth and breadth of peasant households' participation in economic activities, and the income level of peasant households has also increased by a large margin.

A direct consequence of these changes is the rapid expansion of farmers' demand for money, especially for transactional money, and the rapid increase in demand for M0 and M2. Similarly, with the reform of state-owned enterprises and the development of various non-state-owned economic sectors, the incomes of urban households have diversified, and the real incomes have increased unprecedentedly. This has led to an increase in household savings, i.e., an increasing demand for M2; Moreover, the scale of trading demand is rapidly expanding, and the demand for M0 is increasing.

Under the original planned economic system, products and raw materials were allocated in a planned manner, and the very little cash of enterprises was only used for sporadic management expenditures, so that enterprises had no independent demand for money. With the deepening of the reform of delegating power and giving profits, the operating behavior mechanism of state-owned enterprises has changed, and the expansion of market-oriented operation of enterprises has expanded the scale of production and working capital of enterprises, and increased the demand for transactional currency of enterprises. Enterprises entering the market economy are facing increased market uncertainty, and enterprises hold more currency balances to reserve means of production and meet daily irregular expenditures, that is, the demand for precautionary money has increased.

The demand for these two currencies has led to a rapid increase in corporate bank deposits, i.e., a rapid increase in demand for M1. In transition economies, the demand for speculative money from companies is also budding and growing, but it is still mainly in the form of fixed deposits, which increases the demand for M2.

The investment-driven economy is unsustainable, destroys the environment, wastes resources, and over-issues currency. The gap between rich and poor has widened. The problem now is that there is no way to reform.

In the case of sluggish domestic demand and exports, all our energy is focused on investment. If you slack a little bit, once the liquidity drops, and once the money in the containers is squeezed out, the inflation will be terrifying.

At present, the direction of reform of the international monetary system is the diversification of reserve currencies.

In the international monetary system, during the period of the international gold standard, the pound sterling was the main international reserve of all countries; After the introduction of a fixed exchange rate system centered on the US dollar, the British pound was replaced by the US dollar. However, there is still a new Triffin problem in the current international reserve currency institutional arrangement, that is, there is a conflict between the function of the US dollar as a key international currency and the function of national currency. After the US dollar replaced the British pound to become the main international reserve currency of various countries, affected by the political and economic fluctuations of the United States, a single international reserve currency is not conducive to the stability of the entire international financial system, and the existing international monetary system is generally regarded as a transitional and unsound system that needs to be thoroughly reformed.

The diversification of reserve currencies is an inevitable trend in its development in order to meet the needs of the international community. Due to the shortcomings of asymmetry and unfairness, both holders and issuers of dollar assets are dissatisfied with the current international monetary system. Under the current floating exchange rate system, in addition to the US dollar, the mark, and the yen, the international reserves of various countries also include the British pound, the French franc, the Swiss franc, the Dutch guilder, etc., and a pattern of diversification of reserve currencies has emerged.

The structure of diversified international reserve currencies provides a variety of repayment currencies for the international economy, and gets rid of the excessive dependence on the US dollar under the Bretton Woods system; Diversified exchange rate arrangements meet the needs of diverse countries with different levels of development, and provide flexibility and independence for countries to maintain economic development; The flexible and diverse adjustment mechanism makes the adjustment of the balance of payments more effective and timely.

The advantages of a diversified international monetary system also include providing more choices for market players, which is conducive to risk diversification; Competition and checks and balances can be formed between different reserve currencies, and market discipline can be formed for reserve currency issuers. It can increase the supply of international reserve assets. Therefore, it is inevitable that the replacement of a single reserve currency with a diversified reserve currency is a historical development.

This is a more complex question, in short, the issuance of money is increasing.

The increase in the value of the RMB and the increase in the demand for labor will definitely bring about fluctuations in the economy. This was short-lived, though.

The Jamaican system has basically gotten rid of the drawbacks of the Bretton Woods system when the benchmark currency countries and dependent countries were involved in each other, so that a variety of exchange rate arrangements, mainly floating exchange rates, can be more flexible to adapt to changes in the world economic situation, adjust the balance of payments by various means, and generally adapt to the current international economic situation, but there are also many shortcomings: First, the use of sovereign credit currency as the international reserve currency is the fundamental defect of the Jamaican system. **After demonetization, credit money acts as the standard currency, which is greatly affected by the economy of the reserve currency country and has an unstable foundation.

After the collapse of the Bretton Woods system, the dollar's position declined, but it remained at the core. Since the 90s of the 20th century, the U.S. economy has moved towards virtualization, the long-term large deficit in the balance of payments, and the "dollar paradox" caused by the "Triffin problem" has begun to appear, which has had an impact on the operating mechanism of the current system. Due to the lack of the constraints of the US dollar issuance, the amount of currency issuance depends entirely on the manipulation of the Federal Reserve, coupled with the lack of a currency issuance control mechanism, the over-issuance of US currency has led to the flood of US dollars, which has exacerbated the instability of the current monetary system.

Second, the exchange rate system is unstable. Under the current system, countries are free to make arrangements for the exchange rate system according to their own conditions, and the coexistence of multiple exchange rate systems has exacerbated the complexity of the operation of the exchange rate system. Exchange rate fluctuations and exchange rate wars have continued to erupt, fueling international financial speculation and greatly increasing the risk of financial crises.

Third, the balance of payments adjustment mechanism is not perfect, the balance of payments adjustment mechanism is asymmetrical, and the deficit countries among the vast number of developing countries have become the main regulators of the balance of payments imbalance, resulting in a trend of polarization in the balance of payments. Other shortcomings include the lack of an effective mechanism for regulating the issuance of reserve currencies and mechanisms for international cooperation and coordination, and the issue of the right to speak in international financial organizations.

In view of the many shortcomings of the current system, especially the financial crisis that broke out in 08, the international community has carried out some reforms to the Jamaican system, mainly including: reforming the internal governance institutions of the IMF to increase the share and voice of developing countries; the transfer of voting rights to developing countries and countries in transition; the establishment of a Financial Stability Board to monitor risks in global macroeconomic and financial markets; the G20 summit as the main platform for negotiating world economic affairs; Strengthen financial supervision, formulate a new Basel Accord, and further tighten the capital and liquidity standards of banks.

It can be seen that these reform measures have not fundamentally solved the many shortcomings of the current system, and the international monetary system is in urgent need of further reform.