Scientific works within the theories of price range and credit, consistent with the specification of the studies object, are characterized to be many-sided and plenty of-leveled.
The definition of totality of the low-priced family members shaped in the process of formation, distribution and usage of price range, as cash sources is extensively spread. For instance, in “the overall concept of price range” there are definitions of finances:
1) “…Finances mirror cost-efficient members of the family, formation of the price range of cash resources, within the method of distribution and redistribution of national receipts in keeping with the distribution and usage”. This definition is given notably to the conditions of Capitalism, when cash-commodity family members gain universal person;
2) “Finances represent the formation of centralized ad decentralized cash resources, most economical relations surprisingly with the distribution and usage, which serve for success of the nation capabilities and obligations and additionally provision of the conditions of the widened further manufacturing”. This definition is added with out showing the surroundings of its motion. We percentage partially such rationalization of budget and assume expedient to make some specification.
First, budget conquers the bounds of distribution and redistribution provider of the national profits, although it’s miles a simple foundation of finances. Also, formation and usage of the depreciation fund that is the part of the economic domain, belongs not to the distribution and redistribution of the country-wide profits (of newly fashioned cost at some stage in 12 months), but to the distribution of already developed fee.
This state-of-the-art first seems to be a part of price of predominant industrial price range, later it’s far moved to the fee rate of a geared up product (that is to the price too) and after its cognizance, and it’s miles set the despair fund. Its source is taken into consideration earlier than hand as a despair kind of the consistency of the ready merchandise fee rate.
Second, the major goal of the budget is a whole lot wider than “fulfillment of the kingdom features and duties and provision of conditions for the widened further production”. Finances exist on the state level and additionally on the manufactures and branches’ stage too, and in such situations, when the maximum a part of the manufacturers are not a country.
V. M. Rodionova has a specific position approximately this concern: “actual formation of the financial sources starts on the stage of distribution, while the value is realized and concrete budget friendly sorts of the found out cost are separated from the consistency of the profit”. V. M. Rodionova makes an accessory of a budget, as distributing members of the family, whilst D. S. Moliakov underlines business foundation of finances. Though each of them provide quite substantiate discussion of finances, as a machine of formation, distribution and utilization of the funds of cash resources, that comes out of the subsequent definition of the finances: “monetary coins family members, which paperwork within the technique of distribution and redistribution of the partial cost of the national wealth and total social product, is related to the topics of the economic system and formation and utilization of the country coins incomes and financial savings in the widened similarly manufacturing, within the fabric stimulation of the employees for satisfaction of the society social and other requests”.
In the manuals of the political economy we meet with the subsequent definitions of price range: “Finances of the socialistic kingdom represent competitively priced (cash) family members, with the assist of which, inside the manner of planned distribution of the incomes and savings the funds of cash sources of the country and socialistic manufactures are formed for ensuring the increase of the manufacturing, growing the fabric and cultural stage of the people and for pleasant other trendy society requests”. “The gadget of advent and utilization of important price range of cash resources for guarantying socialistic widened in addition manufacturing constitute precisely the budget of the socialistic society. And the totality of competitively priced family members arisen between kingdom, manufactures and organizations, branches, areas and separate citizen according to the motion of cash budget make financial members of the family”. As we’ve seen, definitions of finances made via financiers and political economists do not range substantially. In each discussed role there are:
1) expression of essence and phenomenon inside the definition of finances;
2) the definition of finances, because the system of the advent and usage of finances of coins resources on the level of phenomenon.
3) Distribution of price range as social product and the cost of national earnings, definition of the distributions planned man or woman, fundamental goals of the economy and cost effective members of the family, for servicing of which it’s miles used.
If refuse the preposition “socialistic” inside the definition of finances, we may say, that it nonetheless continues reality. We meet with such conventional definitions of budget, without an adjective “socialistic”, inside the cutting-edge inexpensive literature. We may supply such an elucidation: “price range constitute coins sources of manufacturing and usage, additionally cash relations seemed in the process of dispensing values of fashioned low cost product and country wide wealth for formation and further production of the cash incomes and financial savings of the reasonably priced topics and state, worthwhile of the people and pleasure of the social requests”. On this elucidation of budget like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the monetary foundation. They situation “distribution and redistribution of the fee of created low in cost product, additionally the partial distribution of the cost of national wealth”. This state-of-the-art may be very real, highly to the method of privatization and the transition to privacy and is periodically used in exercise in exclusive nations, for instance, Great Britain and France.
“Finances – are coins resources, financial resources, their creation and motion, distribution and redistribution, utilization, additionally low-cost members of the family, which might be conditioned by way of entering calculations between the comparatively cheap subjects, movement of coins resources, cash stream and usage”. “Finances are the gadget of low-cost members of the family, which are linked to firm creation, distribution, and usage of economic assets”.
We meet with without a doubt innovational definitions of finances in Z. Body and R. Merton’s foundation manuals. “Finance – it’s miles the science approximately how the human beings lead spending `the deficit cash resources and incomes inside the particular time frame. The financial choices are characterised by the fees and incomes which can be 1) separated in time, and a pair of) by and large, it’s miles impossible to take them into consideration ahead neither through people who get choices nor every other character” . “Financial theory includes numbers of the conceptions… Which learns systematically the topics of distribution of the cash sources quite to the time element; it additionally considers quantitative models, with the help of which the estimation, putting into practice and recognition of the opportunity editions of every economic choices take vicinity” .
These simple conceptions and quantitative models are used to every degree of having financial selections, however within the trendy definition of price range, we meet with the following doctrine of the economic foundation: most important feature of the price range is to the satisfaction of the humans’ requests; the topics of reasonably priced activities of any type (companies, additionally country organs of every stage) are directed in the direction of pleasurable this simple feature.
For the desires of our monograph, it is important to examine famous definitions about finances, credit score, and investment, to determine how and how much it is feasible to integrate the price range, investments and credit score into the one overall element.
Some researcher thing that credit score is the consisting a part of finances if it’s far discussed from the placement of essence and category. The different, more numerous organization proves, that a cheap class of credit score exists parallel to the inexpensive class of finances, by using which it underlines impossibility of the credit’s life inside the consistency of finances.
N. K. Kuchukova underlined the independence of the class of credit score and notes that it is handiest its “function characteristic the turned motion of the cost, which is not associated with transmission of the loan opportunities together with the proprietors’ rights”.
N. D. Barkovski replies that functioning of money created a cheap foundation for apportioning price range and credit score as an impartial class and gave upward thrust to the credit score and financial relations. He noticed the Gnoseological roots of technology in money and credit score, because the science about budget has business with the research of such in your price range family members, which lean upon coins waft and credit score. Let’s speak the maximum spread definitions of credit score. Within the cutting-edge publications credit appeared to be “luckier”, then price range. For example, we meet the following definition of credit score inside the finance within your budget dictionary: “credit score is the loan inside the shape of coins and commodity with the situations of returning, typically, by using paying percentage. Credit represents a form of motion of the mortgage capital and expresses cost-efficient relations among the creditor and borrower”.
This is the conventional definition of credit. In the sooner dictionary of the economic system, we study: “credit is the gadget of least expensive family members, which is shaped while the transmission of coins and cloth means into the temporal usage, probably underneath the conditions of returning and paying percent”. In the manual of the political economic system published under discount of V. A. Medvedev the following definition is given: “credit score, as a cheap category, expresses the created members of the family among the society, labour collective and employees in the course of formation and utilization of the mortgage price range, underneath the terms of paying present and returning, at some point of transmission of assets for the temporal usage and accumulation”.
Credit is mentioned in the following manner in the earlier training-methodological manuals of political financial system: “credit is the gadget of cash relations, which is created within the technique of using and mobilization of quickly free cash method of the state budget, unions, manufacturers, companies, and population. Credit has an objective individual. It is used for presenting widened similarly manufacturing of the state and different needs. Credit differs from budget through the returning person, while financing of manufacturers and companies by the kingdom is fulfilled without this circumstance”.
We meet with the subsequent definition if “the direction of the economy”: “credit score is an economical category, which represents relations, whilst the separate commercial businesses or persons transmit cash manner to every different for temporal usage underneath the conditions of returning. Creation of credit score is conditioned by an ancient method of satisfying the low-budget and cash relations, the form of that’s the cash relation”.
Following scientists provide barely one-of-a-kind definitions of credit: “Credit – is a loan within the shape of money or commodity, which is given to the borrower via a creditor below the situations of returning and paying the percentage charge by means of the borrower”. Credit is giving the temporally free money resources or commodity as a debt for the described terms with the aid of the fee of fixed percent. Thus, a credit score is the loan in the shape of money or commodity. In the method of this mortgage’s motion, a definite family members are fashioned between a creditor (the loan is given by way of a juridical of physical character, who gives sure cash as a debt) and the debtor. Combining each definition named above, we come to an concept, that credit score is giving cash capital of commodity as a debt, for positive phrases and fabric provision beneath the price of company percent rate. It expresses definite affordable family members among the members of the system of capital formation. Necessity of the credit relations is conditioned, from one side, by way of amassing stable amount of temporarily unfastened cash sources, and from the second aspect, life of requests of them.
Though, at the identical time, we must distinguish comparable to concepts: loan and credit score. The loan is characterized by means of:
o Here, the dialogue may additionally touch upon transmission of money and additionally things shape one side (loaner) to any other (borrower): a)underneath the proudly owning of the borrower and, on the same time, b) under the situations of returning identical amount or same amount and nice of the things;
o The loaning of money might also bear no hobby;
o Any individual may additionally take part in it. With the difference in the mortgage, credit score, that is somehow a personal occasion of the loan, represents:
o One side (loaner) offers to the second (borrower) simplest cash, and _ for temporal utilization;
o It might not bear any interest (if the project does not foresee something);
o In it, the creditor is not any individual, but a credit employer (at the primary vicinity, banks). So, a credit score is the bank credit score. To our mind, it isn’t correct to apply “credit” and “loan” as the synonyms. Banking crediting is the union of members of the family between the bank (as a creditor) and its borrower. These relations touch upon:
a) Giving a positive amount of money to the borrower for definite motive (even though, we meet with the so-referred to as free credit, pursuits, and objects of crediting are not appointed within the mission);
b) It’s opportune returning;
c) Getting percent charge from the borrower for using the assets under his/her disposal. The critical basis of the credit essence and its essential detail is a life of accepting as true with between the two sides (in Latin “credo”, from which comes the phrase “credit score”, approach “agree with”). From the position of a move of money paperwork (within the abstraction, the historical procedure of formation budget friendly members of the family and social budget and banking structures expressed with the aid of them) comparing unique definitions of finances and credit score, the paradox end seems: credit is the private occasion of a budget. And simply, from the placement of motion of the cash forms, price range constitute the system of formation and utilization of the budget of cash means. Very regularly such moves are fulfilled with out returning, however, occasionally, it is feasible to give loans from the finances for the investment tasks of different needs. Also, when a manufacture or companies use their coins funds and we imply the price range of commercial situation, such usage may be found out as in the manufacture or company (there’s no situation approximately returning or now not returning of the usage), so gratis underneath conditions of returning. This present day is called business form because of transmitting the assets to others, but even in this event, it’s far the element of the financial system of the manufacture and corporation.
From the factor of coins manner movement, principal character of credit is the system of formation and usage of the price range of coins approach underneath the conditions of returning and, normally, taking the cost percentage. If gating the credit fee does not take vicinity (even in the great events), in step with the movement form, credit score will become a personal occasion of price range, as from the internet economic funds (consequently from the state finances) the loans which undergo no interests may be used. If gating credit price takes region, by the advent form, credit score is discussed to be monetary amendment.
From the ancient factor of view, finances (specially inside the sort of the state price range) and credit score (starting with usury, later business and banking) had been growing otherwise for thinking about credit to be the part of price range. Though, from the genetic-historic point of view, previous loaners, before giving loan, wished amassing the permanent capital not returning, this is the internet economic basis. The banks analogously wished attention of the critical personal capital for influxing the clients’ way and for getting better percentage rate underneath the situations of returning. Herewith, exactly on the economic basis, inside the type of economic fund (which later in part becomes loan fund) a part of the financial institution capital appears to be the reservation (coverage) a part of the fund, which by way of nature is economic and now not mortgage. So notwithstanding the essential differences among price range and credit shape the genetic-historic point of view, credit score appears to be formed from price range and constitute their amendment.
From the vital position of expressing reasonable members of the family of price range and credit score, we meet with cardinal differences between these categories. Which in general expressed by using the distinction of the movement paperwork notwithstanding they may be returnable or now not. Finances specific members of the family in the elements of distribution and redistribution of social product and a part of the countrywide wealth. Credit expresses distribution of an appropriate price simplest within the phase of percent given for mortgage, at the same time as in keeping with the loan itself, a handiest a temporal distribution of money sources takes location. Herewith, there is lots of not unusual between the finances and credit score as from the crucial factor of view, so according to the shape of motion. At the identical time, there’s a vast difference between price range and credit as in the essence, so in the form too. According to this, there need to be a sort of typically low-priced category, with the intention to recall budget and credit score as a total unity, and within the bounds of this class itself, the separation of the precise essence of the budget and credit score might take area.
Funding of the coins way is commonplace to the researched competitively priced classes. It takes location in any separate machine of price range and credit, which have been touched upon all through the analyses of defining finances and credit score. Word combination “funding of the cash resources (fund formation)” displays and defines exactly essence and shape of cost effective class of extra widespread person, those of finances and credit score categories. Though in the in affordable texts and practice, it is very uncomfortable to apply a termini, which includes three words. Also, “unloading” with an statistics hardens substantially its influxing into the circulation even in the conditions of its strict substantiation and thoroughness. In the discussing context we recall:
1) wide and slender information of within your budget category of the finances;
2) discussing finances in slim know-how underneath widespread conventional meaning;
3) discussing finances, as investment of the coins means, in huge information, which issues finances – in narrow meaning and credit score – in whole that means. Termini “funding” and its equal “fund formation” are used by us as the practical structuring of cash way, that’s based totally on poles – accumulation of cash assets (amassing) and its utilization for specific purpose within the manner of financing and crediting. We have mounted a brand new termini – “finance-funding sphere” (FIS). Analyses approximately interrelation of price range and credit made with the aid of us supply us an opportunity of proving, that inside the given termini, the phrase “financial” is used with the meaning of investment coins resources, its useful structuring. In this system we do not forget at the equal time economic, credit and investments’ good value categories.
Let’s sum up center results of discussing new concept – “finance-funding sphere” and discuss its funding consisting components.
The concept “investments” changed into brought into the native most economical science from the West. In the Soviet low-budget technological know-how they for a long time used within the region “investments” the termini “capital placement”, which expressed using the economic elements within the sphere of real industrial activities at some stage in consciousness of capital projects. From one glance, this termini in its concept are same to the “investments”, therefore it’s far feasible to use them as synonyms. Though the termini “investments” and “making an investment” have the advantage closer to the termini “capital placement” from linguistic and philological points of view, due to the fact they may be expressed with one word. This is not best cost effective and at ease inside the manner of working with the termini “investment” itself, however, also it offers a possibility of termini formation. More concretely: “funding technique”, “funding domain”, “finance-funding sphere” – these kinds of termini are a good deal extra perfect. Changing native most economical termini with foreign ones is practical if it sincerely topics (by keeping parallel usage of the local termini for the inheritance). Though we must now not alternate native low-cost termini into overseas ones altogether, whilst by way of ordinal traditional language smooth to give an explanation for non-public and narrow concrete procedures and factors get their own termini. The “motion” of these termini is authorized inside the slim expert bounds, however, their “spitting out” into the competitively priced science may additionally turn low-priced language into the tangled slang.
Let’s discuss termini – “funding” and “capital placement’s” utilization inside the affordable literature. Investments are the placement of funds into the principle and movement capital for the reason of having income. “Investments in cloth property – are the placements of finances into the cell and actual estate (land, homes, furniture and so forth). Investments in financial belongings are the placements of price range into the securities bank accounts and other financial devices”.
We don’t meet with the termini “investments” in the earlier reasonable dictionary, but we meet the combined termini “investment coverage” – the union of the commercial choices, which guarantee major directions of the capital investments, the sports of their awareness inside the determinant suburbs, on which the achieving of deliberate prices of development of the society manufacturing is depended, balancing and effectiveness, getting increasingly more manufacturing and profit of the countrywide income for every misplaced Ruble”. For today, within the most actual definitions, the capital investments are bounded handiest by way of economic approach, when no longer only financial, however also the funding of natural, cloth-technical and informational assets takes vicinity. Labour resources take an actual location inside the investment method. They themselves satisfy this or that investment technique.
A wonderful side of the discussed definitions is that they connect funding coverage and capital placements (investments):
– low-cost improvement in keeping with the key guidelines to the attention;
– offering high fees of competitively priced increase;
– elevating an economical effectiveness, that is expressed:
a) via growing the throw off of the manufacturing and Countrywide earnings for each lost Ruble;
b) by means of pleasing the branch shape of the investments;
c) via improving their technological structure;
d) via optimization in their further manufacturing shape.
Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the fees of collecting manufacturing and business approach and growing cloth reserve”. In this definition modern fees (production costs) are blended with the funding (capital) price. Also, now not the funding prices but (even though the investments are accompanied by way of the best costs) exactly advancing. It differs from the expenses by way of that the means (method) are placed with the aid of returning the superior values, also, underneath the conditions of boom, to which the concept advanced capital is corresponding. The advancing may be realized in the cash, natural-material and informational forms.
Except the termini “investments”, there are two extra termini related with the investment. They are shown underneath.
“Human capital investment” – any hobby provided for raising the people labour productivity (within the manner of developing their qualification and developing their abilities); on the charges of improving the employees’ training, fitness and elevating the mobility of the operating forces”. It may be very beneficial to use the mentioned termini, though it wishes one correction: the human capital investments do now not challenge most effective workers, however also the servants, representatives of every type of labour. “Investment commodity, capital items – a capital.”
In the legit manuals of a political economy of the Reformation time, the capital investments are discussed as “expenses for developing new fundamental budget and widening, reconstruction and renewing the energetic ones”. In this definition the investments (capital placements) at some stage in separation of the forms (kinds) of further manufacturing of the main budget are bounded best via foremost price range (without increases of the movement funds and coverage reserves):
a) creating new ones;
Also, the idea of the industrial accumulating appears, on the expenses of a widening of primary, movement price range and additionally insurance reserves take area”.
You’ll meet the definitions of investments from “the direction of the economic system”: the investments are known as “placements of the fund into the simple capital (fundamental manner of manufacturing), reserves, also other least expensive objects and strategies, which request lengthy-termed influx of fabric and cash way. “According to the Department of capital into physical and cash forms, the investments too should be divided into material and cash investments”.
They apportion investment commodity, to which belong industrial and nonindustrial building objects, automobiles purposed for converting or widened technical park and the furnishings, increasing reserves and others.
“They name the total investments of production and funding product, that is directed in the direction of retaining and increasing the fundamental capital (fundamental method) and reserve. Total investments include two elements. One of them is referred to as the depreciation; it represents important funding resources for compensation of renewal to the extent of earlier than business utilization, wearing out and repairing of the primary means. Second consisting part of the overall investments is represented via internet investments – capital investments for the cause of increasing fundamental means”. Depreciation isn’t a compensation useful resource of wearing the primary finances out, but it’s miles the purposeful economic supply of such sources. Human capital investment is “a specific sort of investments, mostly in schooling and fitness safety”.
“Real investments are the investments inside the budget friendly branches and additionally, they’re types of not pricey activities, which offer influx the increases of real capital, that is increasing cloth values of the commercial method”. We can accept as true with such definition with one specification that material and nonmaterial values to belong to the actual capital (wealth), consequently technology-discovering experimental-production results, various statistics, training of the workers and others. Such service as organization of the excitable video games, additionally the service of redistribution social wealth from one non-public man or woman to some other (besides charity).
“Financial investments represent placement of price range into the shares, obligations, promissory notes, other securities and contraptions. Such investments, of direction, do not provide increases of the real fabric capital, however they help getting income, therefore on the costs of converting the path of the securities inside the time of speculation, or distinguishing the path in extraordinary locations of promote and buying”. We proportion utterly such definition, therefore it follows that financial investments (if it isn’t observed by actual investments as a result) do not boom real cloth wealth and real nonmaterial wealth. According to this context, the expression below may be very crucial: “we ought to distinguish financial investments, which represent placement of the finances inside the approaches of selling and shopping the securities for the motive of getting earnings and economic investments, which come to be cash and actual, moved to actual physical capital.”
In the “most economical direction” quoted before long and brief-termed investments are separated. Recognizing the lifestyles of the limits between them, the authors ascribe brief-termed investments to “one month or more” investments. If we get such conditioned standards, that we will call the investments which triumph over the terms of a few months, lengthy-termed ones, which may be very doubtful and we don’t accept as true with it. A lengthy-termed character of the fund placement is a giant function of the investments (quick-time period does not combine with the idea of investments). Principally, it’d be higher to factor out quick compensative, middle termed compensative and long-termed compensative investments:
– less than 6 months – brief compensative;
– from 6 months up to the yr and a half – center termed compensative;
– extra then the year and a 1/2 – long termed compensative.
We stopped at the definition of the investments within the capital work “good value path” for the special motive, as, in it, the writer tried to talk about the idea of investments systemically and quite completely, herewith the e-book is posted simply now.
We’ll return to the dialogue the definition reasonably priced class of “investments” in one of a kind publications within the following bankruptcy. The definitions given right here are quite enough for having a perception of the extent of lighting fixtures up the given class in the budget friendly literature. What conclusions can be made in accordance the definition of the stated within your means class in the posted works, besides the made notions and specifications?
There is pretty deeply, concretely and carefully defined the idea of “investments”, different definitions inside the low-cost literature; however often in every works about the investments discussed via us till now, there is not opened the essence of investments as a cheap category. In every monograph , despite the fact that it has a title funding, as a cost-effective category , there is given simplest the definition, idea of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing characteristic of the researched object. A concept out of a good deal crucial characteristic capabilities represents handiest one, and essential in it’s miles simplest – definition”.
But the categories are a good deal wider; it is “a key, the most fundamental concept of each technological know-how”. Economical categories theoretically constitute real, objectively existed productive members of the family. A category is the defining of events of existed characters, connections, family members of the goal world. Generally, any academic procedure is fulfilled by using the categories, which provide possibilities for dividing the strategies and events semantically, for expressing the definitions of a subject and recognize their particular peculiarities and low-cost relations of a cloth global. Our goal is precisely to verify investments – as an economical category and also, as a financial category within the narrow information.
Here we observe for some other manual thesis made via the academician Vasil Chantladze: “every monetary relation is an economical one and each economic class is and economical one, however now not every most economical relation and in your price range class is a monetary relation and financial category”. In the procedure of defining the investments, it’s far essential to soak up mind the sides of sources, expenses and earning, because funding, from one aspect, is the result of the manufacture’s activity, and, from another one, – a part of earnings, which, in this case, is not used for usage. Another occasion: it is really useful to speak about investments in two elements: as a category of reserve and goes with the flow, so that you can mirror precisely the relationship between “placement of finances” and “investments”.
As we’ve got noted above, no longer lengthy ago, inside the well-known Soviet literature the concepts of “the placement of price range” and “investments” were popular to be the synonyms and concerned to be investment of assets for similarly production of the primary finances and formation of the turnover finances. We meet with such knowledge of the concept of “funding” (right here, they separate three sorts of the funding prices: investments inside the simple capital of investments, investments in the house building and investments within the reserves) in the modern-day comparatively cheap guides and it’s far in most cases used on the macro level in the course of a statistical examine of low-budget approaches. In this concrete occasion investment is the class of reserve.