ECONOMIC THEORY

The market is, first of all, the exchange of the results of labor: goods and services. The deep essence of the functioning of the market economy lies in the free flow of investment capital = labor resources in production to the average rate of profit, respectively, optimal pricing, and ultimately - an equivalent (socially fair) exchange of labor results. We are talking about a sufficiently perfect market mechanism of self-regulation of the economy both in the interests of consumers in terms of satisfying their material needs, and in the interests of commodity producers in terms of equal value remuneration for equal labor. This is the essence of the law of value of a free-market economy, which, under "laisser-faire" conditions, flawlessly performs the function of supporting market equilibrium and stable development. The state must, observing a number of regulatory requirements (deficit-free state budget, moderate money emission, fixing the discount rate, the norm of bank reserves, the tax rate and a number of other parameters at the optimal level), leave the economy alone, giving business, with the exception of criminal business, complete freedom of creative self-realization. – The optimal strategic course of the state economic policy. The theoretical justification of such a policy, however, requires a revision of the conceptual foundations of classical political economy in order to eliminate its shortcomings and transform it from a theoretical abstraction into a full-fledged applied economic science suitable for developing the correct strategy for macroeconomic development. Political economy will become an applied science under the condition that it “gives birth” to a monetary unit on the labor-cost basis of the material wealth actually created by society. This monograph sets this task for itself.

The modern global economy requires a reformatting of the world monetary system in order to finally bring the money supply of international settlements into line with the total real mass of value in the world. What is needed now is an alternative to the current SDR (Special Drawing Rights) system. Unlike the gold exchange standard - GES and the modern SDR, the new supranational currency should be based solely on a labor-costs basis. That is, for the first time in history, a monetary unit should be tied to labor (living = materialized), rely on the actually produced mass of material wealth. The implementation of this project requires a synthesis of political economy and monetarism.

Currently, the most acute economic problem of Western countries is their deindustrialization. The reason for this lies in the redirection of investment flows from the real sector of the economy to the financial sector due to the higher profitability of the latter. As a result, financial bubbles inflate in the stock markets, and the real economy declines. What are the ways to overcome the problem? First of all, it is necessary to abandon the taxation of the entrepreneurial profit of a large business and move to the taxation of its stock market value - market capitalization. Then financial bubbles will burst and speculative pyramids will collapse, and investment flows will rush into the real sector of the economy, reviving industrial production.

The article presents the idea of curbing the "overproduction" of fictitious capital, which depletes the real sector of the economy, for the sake of the industrial revival of the United States. Since one of the reasons for the deindustrialization of the leading country of Western civilization is the super-profitability of the financial sector as a result of the value-speculative revaluation of inflated assets, the essence of the innovation comes down to a radical reform of the tax system to prevent their speculative revaluation: the transition from profit taxation to taxation of the market value (capitalization) of large business. This kind of reform should be accompanied by measures to limit excessive credit-monetary emission in order to strengthen the dollar and stabilize the financial system. According to the author's assumption, a tax on the market value of assets, devaluing the fictitious capitalization of financial pyramids and bubbles, will direct investment flows to the goods-producing sector of the economy, exempted from taxation of business profits. As a result, tax reform should restore the productive capacity of the real economy, attract an influx of capital investment from abroad, and lead the United States to an industrial renaissance.

The current crisis of the global monetary system forces the world community to search for ways of its reform. The focus is, first of all, on the issue of a qualitatively new international currency. In the context of this problem, a project is presented for the reincarnation of the Keynesian idea of an "objective standard of the value of a composite commodity", which in this case is the combined grain of the International Grains Council (IGC), with the aim of creating on its basis a supranational monetary unit GES (Grain Equivalent Standard) as an exchange rate benchmark /measure of value/ of national currencies plus for practical use as an international payment and reserve instrument. Since the movement of the market value of IGC grain is in the trend of the long-term movement of the value of the prevailing mass of commodity products, the new monetary architecture assumes, in essence, the binding of the GES currency to the general price trend of the world economy, which guarantees the stability of this currency in terms of purchasing power in the long term. – Guarantee of stability of global finances. Two options for reforming the global monetary system are proposed. The first option involves the creation of a global currency GES based on the weighted average value (in US dollars) on the world market of the IGC grain standard. – A symbolic currency, is used as a measure of value and an international unit of account, an analogue of the SDR of the International Monetary Fund. The second option involves the creation of a global GES currency on its own monetary base, value-formatted by the global economy and attached to the weight of the IGC grain standard similar to the gold-dollar standard of the Bretton Woods system. – The currency is quite real, autonomous (independent of national currencies), used as a measure of value, a full-fledged means of monetary circulation. The first option provides for a symbolic linking of the world currency to the market value of the IGC grain standard; the second – its direct value link to the weight of the IGC standard. Reforming the monetary system is designed to "anchor" national currencies (including the US dollar) on a solid material-value basis of the global economy, calm the emission-monetary bacchanalia in the world, stabilize the system of international settlements and payments, normalize equivalent commodity exchange in world trade, clearing pricing from pseudo-value falsity.

Keywords: Global Monetary System, World Monetary Unit, Supranational Currency.

Attention! Translation problem.

PRICE (цена) is the monetary expression of the value of a commodity.

VALUE (стоимость) is the market valuation of the labor embodied in a commodity.

COST-PRICE (себестоимость) is the monetary costs of producing commodity.

COSTS-LABOR (трудозатраты) is the costs of labor for the production of good.

Under this condition, the value of the goods is presented:

In theory: VALUE > = < COSTS-LABOR → to the average rate of return.

In practice: VALUE (in price) = COST-PRICE + PROFIT (average).

PROFIT average is an indicator of the optimal VALUE (in price).