In Belarus from 1 July 2016 is a denomination in accordance with the decree № 450 “About carrying out the denomination of the official monetary unit of the Republic of Belarus”.
Over its 23-year history of the Belarusian national currency has already twice lost the zeros. The “bunnies” that appeared in 1992, “cut the ears” almost immediately — in 1994. the value of the currency then fell by a total of 10.
Denomination of July 1, 2016, the largest for all time of existence of the new Belarus. Old money for new will change in proportion of 10 thousand rubles to 1 ruble. This means that the denomination of 10 thousand times.
Old and new money will be in circulation until the end of 2016. In the next three years the old money can be changed in banks, and till 31 Dec 2021 — in the National Bank.
The largest new banknote of 500 rubles corresponding to the old 5 million ($250 at the exchange rate in 2016), and the smallest monetary unit was one penny, which corresponds to 100 old rubles.
Just since July 1, entered into circulation seven denominations of banknotes— 5, 10, 20, 50, 100, 200 and 500 rubles, and eight denominations of coins— 1, 2, 5, 10, 20 and 50 cents and 1 and 2 of the ruble.
This is the third denomination of the Belarusian ruble. Previous banknotes, which are now changing to new rubles were in circulation for 16 years.
DENOMINATION — WHY?
The reason is quite simple: in circulation today there is a huge amount of money, and people experience considerable inconvenience in this regard.
Against the background of rapid increase of prices over the last few years, not a single denomination in nominal value of above 200 thousand rubles. As for the acquisition of certain goods (e.g., appliances) need a few million. That is, the buyer must come to our store with full of money pockets. In the literal sense of these words.
For several years, galloping inflation, decline of income and increase the tax burden prices have risen to fantastic proportions. To pay the restaurant for coffee with a few tens of thousands of rubles, and the salary, it turns out, several million rubles. That is Berosus with the pace coming to Zimbabwe, where a loaf of bread costs several million Zimbabwean dollars.
The holding of the denomination a forced step, but it addresses the symptoms and not the root causes of such phenomena in the economy.
But there is reason to believe that the current monetary reform in Belarus may be a different scenario. Recently to the President and the government greatly strengthened the position of hardliners of the neoliberal reforms and rapprochement with the West. It seems that after the recent presidential election and the temporary lifting of the EU sanctions against top Belarusian officials and companies starting to dominate this vector.
3 November 2015 at the economic forum “the Economy of Belarus again before selecting” assistant to the President Kirill Rudy and first Deputy economy Minister Alexander Zaborovsky made suggestions of this “shock therapy” for Belarus in 2016. And if their approaches to the actual collapse of state enterprises, cutting state regulation, the large-scale reduction of jobs and the Westernization of the country will be taken by the head of state, and the current denomination will become an integral part of this liberal Pro-Western turn.
The national Bank has already announced plans to reduce inflation. But if the new Belarusian ruble will apply strict monetarist rule and the resulting cuts in social spending and public spending and anti-inflationary measures of the national Bank will set its relatively steady course, the undoubted advantage will be the importers, who supply their goods to the Belarusian market. For Western corporations, their intermediaries and lobbyists in the Republic of such an approach is just what the doctor ordered. Or, more precisely, the specialists for shock therapy of the IMF and the EU.
The conduct of monetary policy, one of the tools which may become a new Belarus ruble, also can significantly ease the process of integration of Belarus with the EU countries.
Not accidentally in the Republic of Belarus adopted a new banking code, developed taking into account the recommendations of international financial institutions. This code, on the one hand, makes national Bank an independent entity, little dependent on the Council of Ministers, but it also limits the direct lending by the national Bank of industrial enterprises of Belarus.
Anyway, even ordinary citizens of Belarus, poorly versed in financial strategies, a special “gingerbread” from denominations do not wait. One law of the market they know well: the cost of cakes and other goods in the case of the upcoming round prices definitely go up. And the amount of cash in their wallets and down.
WHAT THE PROBLEM SEES?
Experts currently see as the main challenges in errors when calculating use of cards, ATMs and their wallets. Basically teach how to shop with the new prices and how not to get lost in.
Experts argue how long is “enough” new money when possible new denomination:
Inflation and devaluation will continue, but at a moderate pace, so penny will function.
In the next five years we are waiting for still, slow and creeping collapse, but will continue to stabilize,
says former national Bank head Stanislau Bahdankevich. According to him, another denomination not be expected in the next 10 years.
Senior analyst of Forex broker “Alpari” Vadim Iosub even remembered the monetary reform in the USSR, 1961:
There is a possibility that, with effect from 1 July the coins are out of circulation during the lifetime of our generation, and maybe will not work at all. This does not mean that the country will be no more denominations. The fact that in respect of coins there is a certain practice. In particular, it was used for currency reform in the Soviet Union in 1961. During the reform carried out the denomination of the ruble by 10 times, but the coins remained in circulation at their face value. 1 penny old left and new 1 penny. This is a logical approach to the use of coins. Especially when you consider that the minting of new coins is much more expensive than printing new banknotes.
But the judge did not remember that Khrushchev’s 1961 not only caused a rise in prices, but also changed the economic policy of systematically reducing prices of products of mass consumption policies to slow price increases, allowing to enrich themselves “elitist”. This policy still prevails throughout the Soviet Union.
The problem of a possible devaluation is mentioned in publications very low-key, casual:
There is also psychology. And may power as many claim that denomination is a purely technical process (because it is), but the appreciation of the dollar on 3 — 4 cents a day will be perceived much calmer than his price increase of 300 — 400 rubles. Although in the end it’s the same thing.
Do take advantage of the power of this opportunity will see later. Meantime, afraid of the presence of the new banknotes in denominations of 500 rubles. Old is 5 million. The logical question — why such a high denomination, if the forecast for the next five years till 2020, inflation will drop to 5%?
NEW PRICES AND ECONOMIC THEORY
The leadership of Belarus there is an understanding that business can use (as in other denominations, including in the Soviet Union, and Russia), increasing prices on food. The President noted after the approval of the new money:
It is necessary to choose time to in any case, we men are not rebuked, we spent the denomination, and someone profited from it. I have a strict requirement: if we were to round prices, the only down side. The people here have nothing to lose.
Against the background of a denomination of possible inflationary pressures. The experience of the denominations in Belarus, Russia and Khrushchev’s Soviet Union suggests that the prices dealers will still increase. For example, if the subject was worth 19 900, then after the denomination it will cost 1.99 RR. Sellers for ease of calculation deliberately would be to round the price to 2. And there is no leadership of any country will not keep a situation today, when the dominant financial policy and liberal economic theories that owns the minds of officials and economists.
What is the problem of the modern economic system? To answer this question, for a start, we propose to consider what approaches to the study of and economic organization exist.
On two classes of economic theories
All potential and currently known economic theories are divided into two classes:
- First describe the economy of the society, implying the need to give an answer to the question “as a private entrepreneur legal means to fill their pockets”.
- The second describe the economy of the society, implying the use of economic relations in society as a means to achieve some other, non-economic in their essence, goals.
The first theory form the basis of economic and financial education in all countries with developed traditions of market economy and constitute the so-called “economy for the clerks, forming the personnel body of those whose hands and are non-economic in their essence goals. These theories share a common approach to the organization of national economy based on the calculation of financial indicators of the economy, and which is therefore called the financial-accounting approach. It dominates in today’s economy. And this is why all the predictions of all the experts contain in one form or another the understanding that “inflation and devaluation will continue,” regardless of denomination or lack thereof and diverge from each other only in the numerical evaluations of this overall course. Denominations in such a system is inevitable, as the financial system is based on usurious lending rate rise to inflation, adding and adding noughts to a currency depreciating countries. The denomination of such a system is logical, because the experts do not argue about how to build a system so that there was no need for denominations in the future, and that when it inevitably (in their understanding and in the will.
The economic theory of the second kind in the countries with developed market economy does not find expression in the system of economic and financial education. They represent personal opinions in Economics and Finance of higher layer managers of successful firms, and traditions of families in the banking and industrial magnates (globally about 350 — 400 families of them within the United States, approximately 50 families). This is all coupled with theoretically formalized professional and life skills and is a so-called “economy for the hosts.
In these economic theories need to answer questions such as:
- as a society generates needs, and what are they consequences of their satisfaction?
- what to produce with limited resources and production capacity, i.e. what is the priority given to different types of products and industries?
- how much to produce?
- based on what technology?
- how to distribute products and the natural benefits?
- how to ensure environmental safety in the production-consumption system?
The answers to these and many other questions are largely due to the policies (both internal and external), holding that the life of the economic system of society somehow needs to provide cost-through the organization of production chains and their relationships, so this approach to the construction of national economy called the organizational and technological approach.
As the financial circulation only accompanied by production and consumer exchange of products and the provision of access to natural goods, which are due to different kinds of socially determined reasons are not complimentary — the organizational and technological approach of the credit-financial system (together with the laws governing the financial treatment) appears as one of many management tools macro the economic system of the society (in addition to her management tools macro-level are, in particular: the system of standards, business ethics, chart of accounts).
But the current political forces in many countries for the most part engaged in the fixture, adjust the created “hosts” the global economic and financial climate.
Our Federal government through the Eurasian Union, SCO, BRICS still only preparing the ground for the transition to the organizational and technological approach to the economy, and it is often beyond the will and consciousness of the majority of the bureaucracy, burdened with liberal views force enterprising individuals who understand what and how needs to be done. The disease of liberalism “elite” — one of the biggest dangers for us and our future, because the liberals don’t realize information and algorithmic integrity of Economics as a set of objects, interconnected by a single algorithm and informational communications, presenting it to himself for the most part as the endless sea of Finance by which they sail on their boats, boats and ships of different size companies, seeking to come to a place of bread, avoiding the storm-a crisis.
Functional diagram of the relationships between sectors of the economy
It looks like the General scheme of the sectors of the economy, but you will not find this diagram in any course of today’s education system. In different disciplines show different blocks, the high, the relationship between neighboring blocks, but do not describe the whole integrity of the national economy, which generates the inadequacy of the worldview of many people in matters of governance, including the liberastov of liberty.
What teaches us education system? Individual pieces, individual relationships, but not the integrity of the entire national economy! But understanding that the economy is closed (on a global scale — brand) production consumer system which shall be governed by (and really behind the scenes through the balance sheets of corporations regulated) sector and regional balances of exchange of products and financial exchange.
A modern system of education thus creates a kaleidoscopic picture of the economy in the minds of people and such above-described “boundless” ideas about her. Because and themselves, United by a common behavior of algorithms, the liberals, hobbled by economic theories ‘ for clerks, not perceived as the integrity of the information and the algorithmic set. However, those who understand the commonality of information and algorithmic support of thinking the liberals can aim to manage this integrity as a single entity. For this you need only to know how to be, statistically, to react to particular information is a collection of individuals.
Feeding the right signals to translate them into one or the other mode of operation that occurs through the stuffing information, it would be a reason.
CONCLUSION
Recognition of the fact that the meaning of existence and the social utility of economic units in relation to the interests of the population of Belarus is achieved only in the economic-political complex called “the National economy of Belarus (or bigger — the Union state, EEU) as a whole, indicates that within this complex should be built a network of channels of monetary circulation, each of which has a specific functional purpose in the life and development of this complex succession of generations.
It was done by F. D. Roosevelt in the USA during the “great depression”. This system can develop itself under the influence of the pricing policy of “free market”.
Moreover, if this “market” is open for any action on it various foreign entities in their unrestricted discretion. It needs to be built consciously-it is advisable to protect against this very “free” market population and the process of social development. And this brings us back to the cross-sectoral and inter-regional balances of exchange of products and financial exchange and leads to the question of the contribution of each administratively independent enterprises (and their associations) in this overall balance.
But otherwise we will live in a constant state of inflation and devaluation” in anticipation of the next crisis from time to time swiping denomination, so as not to frighten the population with the burden of accumulated zeros, and in fact — inflation system, the generator of which is the lending rate.
It is also important to recognize that the economic and political system called “the economy” can thrive only as a result of the successful development of the vast majority of its components. I.e. a healthy body consists of only healthy cells.
I’ll tell you a secret that our man is not afraid even of domestic policy, simply because he did not understand her. As you did not tease, he still will think that this is not “domestic policy”, but simply the divine sufferance, like pestilence, famine, flood, with that only difference that this time the implementation of this allowance is Pompadour. Do I need to understand what domestic policy? — in this respect opinions may be different; but I, on my part, I say directly: “watch out, gentlemen! because as soon as MAN will UNDERSTAND WHAT INTERNAL POLITICS — n-i-ni, C’est fini! [over!] (Saltykov-Shchedrin’s the Pompadours and pompadours”
In the XIX century Russian peasant was permissible not to know and not to understand what “internal policies”.
Currently, you need to know and understand both internal and external in global politics.
The chances that the Belarusian and the great Russian men learn to understand it, extinguished the imposition of various “traditions, myths, dogmas; encoding education “book wisdom”, and just plain, everyday brainwashing TV.
Therefore they need to educate themselves to bring a full transition to organizational and technological management of the national economy.
