THE THEORY OF PURCHASING POWER OF MONEY

The question of total integration of Russia to the world economy after the considerable period of its international economic blockade as part of USSR is now becoming ever more relevant, and also at times of WG. The continuous development of world trade has led to a significant increase and improvement of the market of goods and services that, in turn, has led to their increasing consumption. Today provide world goods and services do not just increased qualitatively compared with the twentieth century, today they are also grown and quantitatively, which inevitably leads to the improvement of the living standard of the population. Indeed, if we compare, for example, the standard of living of Europeans in the nineteenth century, the appearance of only one of such phenomena as water, has significantly improved the lives of people, because he allowed the maximum meet the demand for quality water, including each resident at home. Or you can give an example of how the invention at the beginning of XX century of penicillin, which helped successfully fight colds and, in the end, increased the overall lifespan of the population. Of course such goods and services a large multitude, and bring them into the example to date, in alphabetical order. However, such a strong development of the market of goods and services, which was formed on the capitalist principles that led to the collapse of the monetary system of the gold standard from 1870 to 1914, which was, at that time, the only correct and stable system of mutual settlements between consumers and producers. However, already in the nineteenth century, the growth in the number of goods and services began to significantly outpace the growth of income in the economy of the world's gold reserves (which are extremely limited level of gold production in the world). All of this led at first to a partial loss of value of gold, and later to the impossibility of securing all of the world's goods and services with gold. Of course, the situation with the settlements tried to save the introduction of the silver market funds, but over time, the cost of silver and gold also was not enough.