Monetary and credit crises

The credit promotes occurrence and an aggravation of periodic monetary and credit crises. These are sharp shocks in the monetary and credit sphere, overproduction generated by cyclic crises or extreme economic and political events. Cyclic monetary and credit crises as a harbinger and display of "any general industrial both trading crisis» and special crises differ, «which center of movement is the monetary capital, and direct sphere — banks, stock exchanges, the finance».
Classical cyclic monetary and credit crisis проявт ляется first of all in reduction of the credit and in interest rate increase. Characteristic for an economic crisis overproduction of the goods complicates their realization. Capitalists refuse to sell the goods account from fear of bankruptcy of buyers. In process of delay of a circulation of the capital demand for loans of money for payment of the consumed goods, payments of a salary amplifies and, the main thing, for payment of promissory notes, Appears a tendency to growth of debts of the enterprises. But banks can't satisfy demand for the credit for some reasons: 1) at monetary and credit crises contributions are withdrawn from credit institutions quite often in a mass order; 2) businessmen out of time repay loans, and in case of bankruptcy in general refuse to return them; 3) in the conditions of instability banks are afraid to increase long-term investments of capitals.
Difficulties of reception of the credit conduct to curtailment of production. The delay in return inflow to the enterprises of a monetary gain involves non-payments. As a result of bankruptcies of the enterprises and banks the part of promissory notes and credit volume is violently liquidated decreases. As an example bankruptcies of 10 thousand credit institutions can serve in the USA in 1929 1933
In conditions when the credit is reduced, and the trust to credit money is undermined, begins a pursuit of the valid money. At gold monometallism it caused attacks to banks of issue with the requirement of exchange of credit money of gold. After cancellation of the gold standard flight from paper and credit money to gold is shown in buying up and тезаврации yellow metal.
Insolvency of borrowers, refusal of banks and exporters to grant the loan from fear of bankruptcies cause reduction of the international credit and export of capitals that strengthens an unbalance of balances of payments. During a world economic crisis 1929-1933 many states (Germany, a number of the countries of Latin America) have appeared insolvent.
Crisis of overproduction, bankruptcy of banks and the enterprises cause sharp falling of courses of securities and a panic at stock exchanges. The governments are compelled to close these stock exchanges periodically.
Evolving from overproduction economic crises, monetary and credit crises aggravate them. Bankruptcies, depreciation of the real capital, liquidation of the enterprises, curtailment of production and employment clear away a way for new economic lifting and credit expansion.
Special monetary and credit crises arise under the influence of infringements in monetary and credit sphere in connection with extreme economic and political events, acts of nature, wars.
So, the poor harvest of 1839 in England has caused a rise in prices for wheat and increase in its import from abroad. The passive of the balance of payments caused by it has led to the gold leak which stocks were reduced with 10,5. Million ф. The item in the beginning of 1838 to 2,4 million ф. The item in August, 1839 With a view of restraint of leak of gold has been raised discount rate with 4 to 6 %.
Usually wars also cause monetary and credit crises. In the First World War mass withdrawal of contributions from financial institutions, increase of interest rates, sales of securities and decrease in their courses was observed. Some banks have temporarily been closed.
Sometimes the legislation aggravates monetary and credit crisis. For example, rigid restriction of issue of banknotes depending on official gold reserves of the country (Robert Pilja's Certificate of 1844) has strengthened «monetary hunger» in 1847, 1857, 1866
Though special monetary and credit crises arise usually under the influence of infringements in monetary and credit sphere in the absence of an economic crisis, their reasons are caused by a condition of sphere of manufacture. They anticipate those infringements which should be found out as a result of the events causing monetary and credit crises.
In the conditions of modern capitalism the parity between cyclic and special monetary and credit crises changes. It is connected with change of a course of economic crises in the conditions of state-monopoly capitalism. Modern monetary and credit crises, as a rule, intertwine with cyclic crises of overproduction, and такжэ with economic recessions. However sharp shocks in monetary and credit sphere occur at times and in economic lifting.
For example, depreciation of money, bankruptcies of firms and banks, falling of courses of securities at stock exchanges have amplified in the energy crisis which has begun in 1973 though average rate of economic growth in a number promysh-lenno the developed countries was above, than in 1971-1972
Owing to changes in a cyclic course of reproduction in the conditions of modern capitalism, and also under the influence of monetary and credit regulation the accurate side between cyclic and special monetary and credit crises is erased. Their interlacing is caused by deepening of a general crisis of capitalism. Modern monetary and credit crisis has poured out from the end of 60th years in currency crisis. Forms of its display are modified in the conditions of state-monopoly capitalism.
As a result of the credit expansion directed on encouragement of economic growth, the debts of the enterprises have increased and there was sharply a problem of repayment of credits in the mid-seventies. Difficulties in banking, mistrust strengthening in interbank relations mainly in connection with currency gamble have resulted in 1974 in bankruptcies of such banks, as "Bankhaus Hershtatt" (Germany), "San Diego" and «Franklin Nejshnl» (USA), «Junon де Bank Sjuis» (Switzerland). Bankruptcies of some firms and banks have caused a credibility gap to bank system.
Simultaneously there is a depreciation of money, and the exchange rate is subject to frequent changes. Exchange crises periodically flash. The price of securities at stock exchanges of Paris and London in 1974 has decreased on 20—30 % that has negatively affected capital investments.
Unbalance of balances of payments, difficulties in bank sphere have strengthened intensity in the international credit relations. In connection with fivefold rise in prices for oil demand for the international credit has raised from industrially developed countries — oil consumers. Some countries have resorted to use of gold as a credit guarantee (Italy, Portugal, Uruguay). In a pursuit of profits the international currency gamble in which many banks actively participate has amplified.
Shocks in monetary and credit sphere are caused by instability of economy, an inflation aggravation, imbalance of balances of payments, movings of short-term capitals — so-called hot money. In the seventies monetary - credit crisis has intertwined with a currency, raw, power and world economic crisis (1974-1975). In turn monetary and credit crisis aggravates contradictions of reproduction and the social antagonisms connected with growth of unemployment, decrease in a standard of life of workers.
Influence of monetary and credit crises on position of workers is shown in various forms. First of all inflation reduces a real salary. Currency gamble negatively affects position of workers even far from sphere of their interests. As an example bankruptcy of the Cologne bank «Bankhaus Hershtatt» (1974) which has incurred severe losses at carrying out of currency transactions in a pursuit of profit can serve. It has caused bankruptcy of the enterprises connected with it and banks. Among victims have appeared ten thousand small investors and 800 serving banks as bankruptcy has been declared on the eve of salary payment.
Monetary and credit crises worsen world trade conditions, cause a course change of currencies that aggravates contradictions between the countries. Thus, monetary and credit crises have return influence on economy, aggravating social and economic contradictions.