A Comparative Study Of Marx’s Monetary Theory And Friedman’s Monetary Theory

Marx and Friedman’s monetary theory, Marxist economic theory and westerneconomics systems each have two theories occupy an important position in theformulation of monetary policy in different countries of the world monetary theory ofthe two has a profound impact. For the study of the theory of the two currencies inrelation to the formulation and implementation efficiency is not only a country’smonetary policy, but also about the development of the national economy. This articleattempts to compare the two studies by monetary theory, combined with China’ssocialist market economy actually draw some inspiration at this stage of our responseto the problem of inflation.The traditional Marxist scholars generally are limited to the scope of monetarytheory of Marx ’s "Das Kapital " in the first chapter of the first volume, this articleattempts to Marx’s basic content of the extension and expansion of monetary theory toMarx ’ Das Kapital " Volume II, the third volume of capital in the form of the relevantpart of the analysis. The article points out though Marxist theory of money earlierthan the Western bourgeois monetary theory more than a century, but the moneydemand theory has been included transaction demand, investment demand andspeculative demand, which has always been to help people solve the monetary theoryof Marx content misunderstanding.Marx accordance with the principle of unity of history and logic analysis startedfrom the commodity along the commodity-money-logical thinking capital,explained the origin and nature of currency conversion and money into capital.Considered to act as a special commodity currency is fixed general equivalent, Marxdiscusses the functions of money by correctly reveal the nature of money. On thisbasis, Marx discusses the monetary and credit crisis theory, pointed out that the crisisis still real money manifestation of capitalist crisis of overproduction in the form ofthe root causes of the economic crisis of capitalism is the basic contradiction ofcapitalism, the credit system is only accelerated the outbreak of the crisis. Marx’s theory of the study of inflation based on the law on the basis of its currency incirculation, that the study of currency in circulation should distinguish between twokinds of metallic currency notes in circulation and circulation, while inflation is underconditions of banknotes in circulation peculiar phenomenon.The rise of modernquantity theory of money in the late1960s, the Keynesian demand managementpolicies in developed countries but to make into "stagflation " situation, Americaneconomist Milton Friedman as the representative of the modern quantity theory ofmoney which ushered " Revolution " era. Friedman’s monetary theory in criticalinheritance is developed on the basis of classical quantity theory of money andKeynesian monetary theory, monetary theory based on nominal, focusing on therelationship between commodity prices and the quantity of money in research,including modern quantity theory of money, the economic crisis theory and thetheory of inflation and unemployment. Its basic idea is: money is essential, thequantity of money determines nominal income, currency research has focused on thesupply side, in order to avoid the economic crisis and inflation, the governmentshould implement a "single rule " of monetary policy, fiscal policy abandoned.2008economic crisis since the world economy to varying degrees by the impactof inflation, in this case how to correctly use the money to develop the theory ofeffective monetary policy has important practical significance. Part of the capitalistcountries in an attempt to Friedman’s monetary theory seeks way to save theeconomy. In recent years, there are some scholars advocate abandoned Marxisteconomics, blindly copying Western economic theory, I hope to explain thephenomenon of the current inflation by Friedman’s monetary theory. This article willbe more systematic comparative analysis of Marx’s monetary theory and Friedmanmonetary theory, including comparative monetary nature and functions; comparecurrency crisis and the economic crisis and to compare the relationship betweeninflation theory in four areas; compare currency circulation problems. By comparingthe current results on inflation governance should aim to transform the economicgrowth mode, the RMB internationalization process control and accelerate other aspects of the credit scale.