Presentation on economics on the topic “Classical political economy. General characteristics and stages of development
"Economic analysis" - It is assumed that labor costs are expressed in units of labor of the same degree of complexity. Integer programming problem. The model is a conditional image of the object of control (research). Determination of methods by which the problem can be solved. The private technique specifies the general technique in relation to business processes occurring in a certain sector of the economy, to a certain type of production.
"Department of Automation of Production" - Educational Laboratory " Program control equipment." Our graduates and students of specialties 220301 and 220402 ? profitable product! If you enroll in commercial form training, the costs will pay off. Educational laboratory "Fundamentals of Robotics". Department of Automation technological processes and productions."
"Teacher of Economics" - Application of ICT. study room. first in the HSE student rating. Health-saving effect of technology of intersubject communications. The system of extracurricular activities. The structure of the cognitive needs of economics teachers. Berezina Irina Viktorovna Connected to local computer network with internet access.
"Modern Economics" - About the program "Financial Economics": Round table on this topic: " Psychological aspects Money” 17.10.10 at the Financial University. External Study Program. We invite you to visit the website of the London educational project http://projects.fa.ru/london. Partners, collaboration: Science Festival, September 2010. Basic courses in the direction of "Economics" Program "Financial Economics".
"Creation of a training center" - Employees of research laboratories employees of production units new employees of the enterprise. Increasing labor productivity Reducing the development and introduction of new products Improving product quality Preserving the intellectual and scientific property of the company. 1 month 2-3 months 2 months 2 weeks 2 months not determined.
"Economic sphere" - Poll. Production. The economy of a particular country, including certain industries and types of production. Lesson 1. People, organizations. Social Studies. Grade 9 Political. What would happen if people did not have economic knowledge? The structure of the economy. Market. Exchange. Earth. When, under what circumstances?
There are 13 presentations in total in the topic
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2.4.3. The Law of Markets and the Theory of "Three Factors of Production" by J.B. Say. 2.4.1. Methodological principles and main provisions of the theory of K. Marx. 2.4.2. Theories of T. Malthus. 2.4.4. Historical school in Germany - as an alternative to the classics.
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K. Marx (1818-1883) K. Marx Lawyer by education, journalist and professional revolutionary "Marxism is too valuable to be left to Marxists alone" P. Samuelson
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Historical conditions for the emergence of Marxism The victory of capitalism in Europe (40s of the 19th century) Spontaneous labor riots Change in the class structure of society Main classes: bourgeoisie proletariat 1831 - uprising of Lyon weavers in France, 30-40s. - Chartist movement in England, 1840 - uprising of the Silesian weavers in Germany.
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Three sources of Marxism
Utopian socialism (Saint-Simon, Fourier, Owen) Classical bourgeois political economy (Smith and Ricardo) German philosophy (Hegel and Feuerbach)
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Dialectical materialism Subject and method of Marxism Subject Method Analysis of the sphere of production, production relations Identification of the law of motion and death of capitalism. The study of relations between people and the property relations that determine them.
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“Sketch to the Critique of Political Economy” (1843) “The Holy Family, or the Critique of Critical Criticism” (1844) “The Poverty of Philosophy” (1847) The main works of K. Marx and F. Engels “On the Critique of Political Economy” (1859) “Capital” (1867-1905) "Critique of the Gotha Program" (1875)
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Analysis of the capital production process Subject "The best thing about my book: the dual nature of labor, the study of surplus value regardless of its special forms." K. Marx Characteristics of "Capital" Volume I (1867)
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Characteristics of "Capital" (Volume I)
Basics laid out labor theory value. The process of production of surplus value is analyzed. The characteristics of the essence and main forms are given. wages The process of capital accumulation is analyzed. The operation of the law of value is shown. The analysis of the historical process of the development of exchange and forms of value is carried out. The basic economic law of capitalism, the law of surplus value, is formulated. K. Marx showed how the "dazzling" monetary form appeared, the "secret" of money was revealed. "The economic system of K. Marx is distinguished by iron logic, if you recognize the starting point, then you are forced to agree with the conceptual conclusions." Böhm-Bawerk
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Analysis of the capital circulation process Subject Characteristics of "Capital" Volume II (1885)
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Characteristics of "Capital" (II volume)
The reproduction of individual capital is analyzed. The conditions for the unhindered realization of social capital are formulated. The problem of reproduction and circulation of all social capital is analyzed. The doctrine of fixed and circulating capital is being developed. The stages of capital movement are shown. economic growth
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Analysis of Production and Circulation Taken as a Whole Subject Characteristics of "Capital" Volume III (1894) "... in the influence of different capitals on each other, in competition and in the ordinary consciousness of the agents of production themselves." K. Marx
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Characteristics of "Capital" (Volume III)
The problem of combining the operation of the law of value with obtaining an equal rate of return on capital is solved. Criticism of the “triune formula” is given. The doctrine of absolute rent is created and the source of differential rent is clarified. The distribution of profit between groups of capitalists and the forms of its manifestation are studied. Rent - lands Wages are determined by labor
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Characteristics of "Capital" IV volume (1905) Given whole picture development of bourgeois political economy from its inception to its transformation into petty-bourgeois
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Thomas Robert Malthus (1766-1834) T.Malthus Student of A.Smith, friend of D.Ricardo Defender of the interests of the agricultural aristocracy Priest, professor of the department modern history and Political Economy College of the East India Company Born in England, in the family of a landowner 2.4.2. Theories of T. Malthus.
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The main works of T. Malthus
An Essay on the Law of Population in Connection with the Future Improvement of Society (1798) An Inquiry into the Nature and Growth of Rent (1815) Principles of Political Economy (1820)
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Theoretical provisions of T. Malthus
Cost and distribution of income Implementation Law of population Denied the equality of supply and demand, pointed to ways to increase demand Proponent of the theory of production costs The population is redundant compared to the goods it needs Productive labor Labor in the sphere of material production
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J. Say Author of theories: subjective utility, three factors of production and realization. Economist and entrepreneur Born in Lyon, the son of a merchant 2.4.3. The Law of Markets and the Theory of "Three Factors of Production" by J.B. Say. Commentator and systematizer of the ideas of A. Smith Representative of the French bourgeoisie Member of the St. Petersburg Academy of Sciences Jean Baptiste Say (1767-1832)
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Works by J.B. Say
"Treatise of Political Economy, or a simple exposition of the manner in which wealth is formed, distributed and consumed" (1803) "Catechism of Political Economy" (1815) "Course of Political Economy" (6 volumes) (1828-1830)
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2.4.3. The Law of Markets and the Theory of "Three Factors of Production" by J.B. Say. Served as the basis of the neoclassical direction in political economy "Say's Law": Any sale of goods is at the same time a purchase, so the implementation process must be carried out smoothly. "The theory of three factors": Value (utility) is created - by labor, capital, land. Conclusions: There can be no general overproduction, so it is necessary to expand production. The prosperity of one branch is favorable for the prosperity of others. He advocated free trade and condemned protectionism. He demanded a "cheap state" and its minimal intervention in the economy. Labor creates wages Capital creates profit Land creates rent
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Taylor's 4 laws of management 1. Generalization and classification of skills and abilities of all workers. Scientific detailed study of individual actions in each type of labor. Conducting experiments in order to establish laws and formulas for the most effective work "with strict rules for every movement, every person and the improvement and standardization of all tools and working conditions." 2. Careful selection of workers "on the basis of scientifically established characteristics", their training to "first-class workers" and "the elimination of all people who refuse or are unable to learn the best methods." 3. "The administration maintains cordial cooperation with the workers." There is, as F. Taylor says, a convergence of "workers and science on the basis of the constant and vigilant help of management and the payment of daily increases for quick work and accurate fulfillment of tasks." 4. "An almost equal division of labor and responsibility between workers and management." The administration assumes those functions "for which it is better adapted than workers." "Special agents of the administration work with the workers throughout the day, help them, eliminate obstacles in their work, encourage the workers."
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Reaching Worker Program The main goal of such a program is to "lift every worker to top level..., forcing him to use his best abilities, awakening pride and energy in him and giving him a pay sufficient to live better. "The program of the "achieving worker" F. Taylor contains the following principles: 1. entrusting the worker with a task of this degree complexity, which is available to his skills and physical constitution; 2. encouraging him to give the maximum work available to "a first-class representative of his rank"; 3. every worker who works at the highest rate of a first-class worker "should be paid, according to from the nature of the work, an increase of 30% to 100%, compared with the middle peasant class. "In the ability to turn people" weak and negligent "into" first-class workers "is the essence of the art of management.
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Sample - school class Workers engaged in a certain type of work, F. Taylor make up a certain "class" according to the type of school. It distinguishes good, average and bad students depending on progress. Taylor repeatedly compares workers to "adult children" who need to be given lessons, supervised, instructed, urged, and helped. Training in correct methods is carried out through written and oral instructions, practical instructions in the workplace. Thus, the successful ones are transferred to the next "class", and the unsuccessful ones are fired.
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Create Guarantees Only for the Best Taylor's high work rates, harsh work regime, standardization of worker movements and tools, clear coordination and subordination - all this put a person in very harsh conditions. Not everyone survived high rates. But F.Taylor did not "look up to the weak": they had to be eliminated before they were given a task, and not after poor performance. In this way, the protection of the employment, not the position, is guaranteed.
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Work must be challenging Where did the new approach to personnel management come from? F.Taylor suggested: 1. break down all workers into types or "classes"; 2. Give each type of worker a task according to their strength, but not so weak that it is carried out without overexerting themselves. The task should be given for growth, and the work should "challenge", force you to jump above your head every time, so that there is an opportunity to grow and improve skills; 3. to show the most economical and rational methods of work to the leaders selected in each "class". F.Taylor suggested reducing all unnecessary movements, leaving only the most necessary ones, leading to maximum success along the shortest path.
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F.Taylor's "achieving manager" program The "achieving worker" program is complemented by the "achieving manager" program. It covers a wide range of personnel training, personal and business qualities, methods and style of work of the leader. According to F. Taylor, it is easier to select and train several people, each of whom, having one or two abilities, would perform one or two functions, than to find or train one person who has all the qualities and performs broad responsibilities.
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Motivation, Evaluation and Promotion Although F. Taylor did not consider economic reward the only possible and universal form of motivation, he gave it paramount importance. According to his plan, such a payment system is designed to provide "what they most wanted": 1. the livelihood and material wealth of the worker's family; 2. fair distribution of wages and a fair assessment of labor, since the leader received much more than the lagging behind; 3. feeling of complete satisfaction, which arose under the observance of the first two conditions. Taylor came to the conclusion that both overpaying and underpaying are equally harmful. Money is to be earned, not received; only in this case they have real value in the eyes of man. The whole subtlety of labor rationing lies in finding this measure of labor expended and paid. Among the motivating factors of F.Taylor, promotion should be noted.
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Unlike school scientific management who worked in
mainly questions of rational organization of labor of an individual
worker, representatives of the classical school developed
approaches to improving the management of the organization as a whole.
Fayol and other representatives belonged to the administration
organizations, so often the classical school is called
administrative.
The goal of the classical school was to create universal
management principles that will lead an organization
to success.
management, which includes six main groups of operations
management activities:
technical and technological (production, manufacturing,
processing);
commercial (purchase, sale, exchange);
financial (raising capital and effective management them);
security (protection of property of individuals);
accounting (inventory, balance sheets, costs
production, statistics);
administrative (foresight, organization, command,
coordination and control).
Henri Fayol
Fayol was born in 1841 insuburb of Istanbul in Turkey, where
father supervised the construction of the bridge
across the Golden Horn. In 1847 his
the family returned home to France.
After graduating from the Saint-Étienne School of Mines, he
got a job in
mining
Compagnie de Commentry Fourchambeau-Decazeville, in
which he served as leader.
In 1916, just a few years later
after Taylor published his
theories scientific organization labor,
Fayol's work "General and
industrial management". In his
book, Fayol summarized the accumulated
them control schemes, creating
logically coherent systematic
management theory.
Fayol's principles of control
The division of labor is the transfer of individual operations to employees and, as a result, an increase inproductivity, due to the fact that the staff gets the opportunity to focus their attention.
Power and responsibility - the right to give orders must be balanced by the responsibility for their
consequences.
Discipline - the need to comply with the rules established within the organization. For supporting
discipline, it is necessary to have leaders at all levels who are able to apply adequate sanctions to
order breakers.
Unity of command - each employee reports to only one leader and only receives from him
orders.
Unity of action - a group of workers should work only according to a single plan aimed at
achieving one goal.
Subordination of interests - the interests of an employee or a group of employees should not be placed higher
the interests of the organization.
Remuneration - the presence of fair methods of stimulating employees.
Centralization is a natural order in an organization that has a control center. Degree
centralization depends on each specific case.
Hierarchy - an organizational hierarchy that should not be violated, but which, to the extent possible,
must be reduced to avoid harm.
Order is a certain place for each person and each person in his place.
Justice - respect and fairness of the administration to subordinates, a combination of benevolence
and justice.
Stability of staff - staff turnover weakens the organization and is a consequence of poor
management.
Initiative - providing an opportunity for employees to show personal initiative.
The corporate spirit is the cohesion of workers, the unity of strength.
Henry Ford
Born into a family of emigrants fromIreland, who lived on a farm in
around Detroit. When he
turned 16, he ran away from
home and went to work in Detroit. IN
1891-1899 performed
duties of a mechanical engineer
later and chief engineer in
"Electric Company"
Edison". Out of work
time designed his first
automobile. From 1899 to 1902 was
co-owner of the Detroit
car company", but due to
disagreement with others
the owners of the company left it and
founded the Ford Motor Company,
which originally issued
vehicles under the brand name Ford A.
Ford's contribution to management development
His contribution to the development of management is also characterizedthe following things:
1. On the basis of his factories, the earliest craft schools in the whole
America.
2. At his factories, Ford paid the workers the highest wages in
two times higher than average salary in America, this fact caused
business dissatisfaction.
3. Ford introduced an 8-hour working day in his factories.
4. Particularly successful students got the opportunity to study in his own
school, where they could also receive scholarships for their achievements.
5. Built his own laboratory social direction where they studied
the conditions in which its workers live, work and rest.
6. Always strived to improve the various qualities of their cars, to
development of new models and lower prices, which was beneficial for
consumers.
7. Ford workers never did hard, backbreaking work, this
always made cars that were in abundance in factories
quantity.
Mary Parker Follett
Follett was born in the stateMassachusetts and held a large
part of his early life there.
Graduated from college in 1898
Radcliffe, but was refused
doctor at Harvard at admission
to work on the basis that
she was a woman.
The Four Fundamental Principles of Organization
Follett identified four principles of coordination,considered key to effective
management.
Coordination involves the "interconnection" of all
factors.
Coordination is direct contact,
expressed in a direct connection between all responsible
participants, regardless of their place in the hierarchy.
Coordination - must start early. She
covers all persons related to the process, already on
the initial stage of the project.
Coordination must be an ongoing process,
built on the understanding that unity does not exist -
there is only a continuous process of unification.
F. Quesnay (1694-1774)
Representatives of classical political economy in France in the XVIII century. were François Quesnay and Anne Robert Jacques Turgot. They transferred the question of the origin of social wealth from the sphere of circulation to the sphere of production. At the same time, the latter was limited only agriculture, believing that wealth is created only in this industry.
A. Turgot (1727-1781).
Therefore, this direction in the development of economic thought was called the school
physiocrats
(The term is derived from the Greek words "nature" and "power").
Adam Smith (1723-1790)
The outstanding English economist Adam Smith went down in history as the "Prophet of Free Competition". His greatest merit can be considered that in the world of economics he saw the natural self-regulating order discovered by Newton in the physical sublunar world. The main idea in the teachings of A. Smith is the idea of liberalism, minimal state intervention in the economy, market self-regulation based on free prices, which are formed depending on supply and demand. The main work of his life, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), had a tremendous impact on the next century. Economic life, according to Smith, is subject to objective laws that do not depend on the will and conscious aspirations of people. The starting point of all his research is the problem of the division of labor, which binds "egoists-individuals" into a single society. After examining this problem, he proceeds to present the origin and use of money. Smith made a significant contribution to the theory of value, to the doctrine of income, of productive and unproductive labor, of capital and reproduction, and of the economic policy of the state.
CLASSICAL POLITICAL ECONOMY
Classical political economy is not a homogeneous, uniform doctrine and contains a number of directions, the authors of which considered certain aspects of economic life from their own, original point of view. The classical school laid the foundations for the whole variety of modern economic views.
Jean Baptiste Say (1767-1832) began to develop another tradition of value interpretation, founded by A. Smith - the theory of factors of production. He was the first of the classics to clearly and unambiguously formulate the idea that the value of a commodity is equal to the sum of wages, profit and rent, i.e. owners' income production factors used in the manufacture of this product.
The most important contribution made by the representative of the classical school, Thomas Robert Malthus (1766-1834) to economic science, is his development of the "theory of population", in which he connected economic and demographic factors. Moreover, in his formulation of this question, the dependence turns out to be two-way: just as the economy affects the change in the population, so the size of the population affects the economy.
J. Sismondi (1773-1842). For him, the whole interest of political economy, from a theoretical point of view, was reduced to explaining crises, and from a practical point of view, to finding measures to prevent them and improve the situation of workers. He thus becomes at the head of a whole series of economists whose activity did not cease throughout the nineteenth century. Not being socialists, but not blinded by the vices of the liberal regime, these writers were looking for a middle way in which they would not sacrifice their principles in correcting the abuses of freedom.
CLASSICAL POLITICAL ECONOMY
The formation and development of classical political economy took place against the backdrop of serious changes in the economic and social life society. Traditional feudal relations were replaced by a new economy - a market economy, which at the initial stages of its development was characterized by deep social stratification society.
Abuses in factories in the first half of the nineteenth century have been described thousands of times: the exploitation of children of all ages in the most unhealthy and cruel conditions, the almost endless working hours of women and adult workers, miserable wages, ignorance, rudeness, disease, and the vices engendered in such deplorable conditions. In England, reports of doctors, questionnaires from the House of Commons, speeches and revelations of Robert Owen aroused the indignation of public opinion.
The requirement to limit the work of children in cotton spinning from 1819 is the first timid step in the field of labor legislation. J.B. Say, traveling in England in 1815, declared that the worker in England, despite the fact that he has a family, and despite the efforts often worthy of the highest praise, can earn only three-quarters, and sometimes only half of his expenses.
WORK
Ford Madox Brown, England (1821-1893)
artistic
Manchester
CLASSICAL POLITICAL ECONOMY
Ricardo (1772-1823).
D. Ricardo was the most prominent economist of the era of the industrial revolution in England. He formulated a series of economic laws that entered the treasury of political economy. The central place in the teachings of D. Ricardo is occupied by theories of value and money, wages and profits, land rent, the doctrine of capital and reproduction.
Paul Samuelson, in his economics textbook, rates David Ricardo as key figure 19th century: "He was one of the lucky ones. Classical, neoclassical, and post-Keynesian scholars all trace their ancestry from his circle. The same can be said of Marxist-socialists."
Summing up the consideration of the classical school, it should be noted that the main object of study here is production as such, regardless of its industry characteristics, as well as the distribution of benefits. Its outstanding representatives put forward and substantiated a system of concepts and categories that are a scientific reflection of many economic processes.
MARXISM
Karl Marx 1818 - 1883
The merit of the German philosopher and economist K. Marx lies not only in the development of his original teaching - the theory of surplus value and the law of concentration (automatic expropriation), but also in the fact that his work has become a starting point for modern radical political economy (20th century).
In addition, his economic theory served in the 20th century as one of the components of the social ideology of the socialist countries with a planned economy, thus contributing to the fundamental changes in both the economic and general history of mankind in this century.
Karl Marx was born in Trier (Germany) in the family of a lawyer. During the period of revolutionary events in Europe in 1848-1849, he actively participated in the work international organization"Union of Communists" and together with Engels wrote its program "Manifesto of the Communist Party" (1848)
IN 1867 Marx's main work, "Capital" (vol. 1), was published, in which an analysis of the development of capitalism and its historical limits was given .; Marx did not complete work on the following volumes; Engels prepared them for publication (vol. 2, 1885; vol. 3, 1894).
IN the last years of his life, Marx actively participated in the formation of proletarian parties. Marx developed the principles of a materialistic understanding of history (historical materialism), the theory of surplus value, studied the development of capitalism and put forward the proposition that its death and transition to communism were inevitable as a result of the proletarian revolution. Marx's ideas had a significant impact on social thought and the history of society in the late 19th and 20th centuries.
The successor of the work of Marx and Engels was V. I. Lenin, who developed the Marxist doctrine in new historical conditions.
MARGINALISM
In the 1870s, the “Marginalist Revolution” took place in economics, which led to dramatic methodological and theoretical shifts. From that moment can be considered the beginning of modern economic analysis. Among essential elements marginalism as a direction in economics, the following should be highlighted:
Use of marginal (i.e. incremental) values. The word "marginalism" itself comes from the Latin margo, which means edge, limit. Marginalists for the first time use categories - marginal utility And ultimate performance.
Static. Marginalists have lost interest in the "laws of motion" of capitalism, which the classics dealt with. The focus of economic research after the "Marginal Revolution" shifted to the study of the use of scarce resources to meet the needs of people at a given moment in time.
Subjectivism, i.e. an approach in which all economic phenomena are examined and evaluated from the point of view of an individual economic entity. No wonder marginalism is sometimes called the subjective school of economics.
The marginalist direction of economic thought is usually divided into two schools due to differences in methodology - Austrian and Lausanne.
Austrian school |
Lausanne School |
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At present, marginalism (mainly on the basis of the Lausanne school), due to the addition of components of the classical school, has transformed into "NEOCLASSICS (NEOCLASSICAL SCHOOL)".
ECONOMIC SCIENCE
from ancient times to the end of the 19th century
Classical political economy
Adam Smith, Jean B. Say, David Ricardo, Robert Malthus…
PHYSIOCRATS
F. Quesnay, A Turgot
Mercantilism
Atoine de Montchretien
medieval thinkers
Thomas Aquinas, William of Ockham
Saving
Aristotle, Antisthenes, Plato
NEOCLASSICAL SCHOOL
At present, marginalism, due to the addition of components of the classical school, has transformed into "NEOCLASSICS (NEOCLASSICAL SCHOOL)". The prominent representatives of which are: Alfred Marshall and Joseph Schumpeter.
A. Marshall. Main work: "Principles economics» (1890). The fact that |
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neoclassical school is a synthesis of the ideas of (early) marginalism and classical |
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schools, looks especially obvious when we turn to the works of a recognized |
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the founder of the neoclassical school of the English economist A. Marshall. |
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"Principles of Economic Science" is written in the traditional manner for the classics - with |
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long digressions, rich factual material, reasoning on social |
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and moral themes. |
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The subject of economic science, from the point of view of A. Marshall, are those incentives |
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motives that guide a person in his economic activity. These motives |
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quantifiable: the strength of a particular stimulus that causes |
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a person to take some action is equal to the monetary payment necessary for a person |
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performed this action. |
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Joseph Schumpeter, economist and sociologist. Born in Austria-Hungary, since 1932 in the USA. Compositions |
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on the problems of the economic cycle, the history of economic doctrines. Considered history |
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political economy as a process of ascending development of the analytical apparatus and methods |
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central location in which entrepreneurial function. Offered |
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dynamic concept of the cycle, where cyclicity is seen as a regularity |
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economic growth. |
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Every root problem economic system, said Schumpeter, is |
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achieving and maintaining balance. Within the framework of the model, all firms are in the state |
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stable equilibrium, and income equals costs. Profit and interest are zero, prices |
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formed on the basis of average cost, economic resources are fully utilized. |
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Schumpeter Joseph |
This model introduces a new production function corresponding to the new |
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relationship between inputs and output. Introduction of a new function |
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carried out by the Innovator, seeking to make more profit than they can give |
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usual ways. |
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MONETARISM
Monetarism is considered one of the directions of neoclassical economic thought. It originates in the mid-1950s in the United States. One of the recognized founders and leaders of monetarism is the representative of the so-called Chicago school Milton Friedman.
Initially, monetarism originated as a separate branch of experimental research in the field of monetary circulation, namely, as an analysis of the demand for money. In the future, it evolved, covering an ever wider range of economic issues. In the end, by the mid-1970s, it turns into a respectable doctrine, the recipes of which began to be used by the governments of many capitalist countries.
In theoretical terms, monetarism, on the one hand, is based on certain provisions of the neoclassical synthesis (for example, the theory of property), and on the other hand, is a continuation of the pre-Keynesian neoclassical quantity theory of money.
Friedman 1912-
The main works of M. Friedman: "Research in the field of the quantitative theory of money" (1956); M. Friedman, A. Schwartz "A monetary history of the United States, 1867 - 1960" (1963).
All benefits acquired and stored by an economic entity can be represented as its assets. Their combination forms a portfolio of assets. Money is an asset along with other goods.
Assets are held by the individual either because they bring money income(financial assets: stocks, bonds) either because they have some utility per se (non-financial assets: e.g. consumer durables, capital goods) or because they provide convenience, liquidity and security (money).
The task of the individual is to distribute the resources (wealth) available to him in such a way as to maximize his utility. The new quantity theory of money is primarily interested in the amount of funds stored in monetary (liquid) form, that is, in other words, the demand for money.
The demand for money is determined by three main groups of factors: a) the general wealth of an economic entity; b) the costs and benefits associated with various forms of wealth storage; c) the preferences of the individual in relation to various forms storage of wealth.