Tema 1 si 2 la Finante - Vostricov Denis

Extras din document

Lecture 1 . Economic content and concepts of Finance 1.1 Theoretical approaches concerning the concept of finance 1.2 Economic content of Public Finance 1.3 Functions of finance 1.1. Theoretical approaches concerning the concept of finance. There are several expressions related to the word “finance” that we read or hear about: public finance, private finance, finance and capital markets, etc. The word “Finance” has a Latin origin. In the texts originating from XIII and XIV centuries we may find words like finatio, financias and financial precuniaris which all mean "payment in cash”. In Germany, in the XV - XVII centuries the word Finanz is met, which also means payment in cash, and Finantzer, which describes the usurer (moneylender, broker, stingy). In France in the XV century, such expressions as hommes de finances and financiers were used, to indicate the king’s tax-gatherers and the treasurer. It is assumed that the word “finance” derives from the word “finis”, often used in the meaning of "payment period". As we know it now Finances means the entire heritage of the state and finance – income of the state. In time the word finances has acquired a broader understanding. Now it has many meanings including the state budget; crediting; monetary operations; banking and exchange operations etc. The concept of Finance is closely related to the concept of State. It is linked to the use of money and all other forms of value in the process of national income distribution. Finance has appeared on a certain stage of society’s development. Since the emergence of the first elements of finance - the appearance of monetary relations in the early civilizations - it became part of the system of economic relations. Under the influence of changes in initial historic conditions and the developing economic environment the present concept of finance has evolved. The conditions of formation and development of finance are: a) The emergence and development of commodity-money relations, so as to allow the formation and use of state resources in the form of cash; b) The emergence of state that required new resources to undertake necessary functions within the already existing relations. In this context there are two distinct phases in the evolution of the concept of Finance: I stage – classical – corresponding to the pre-monopolistic capitalism period. II stage – modern – corresponding to the age of imperialism. Classical concepts reflect the liberal doctrine, which states that business and economy should be conducted according to the principle of laissez-faire, laissez-passer. The basic tasks of public finance are: to ensure the necessary resources for maintaining the normal operations of public institutions; to keep the taxes and loans with a neutral character; to keep the balance between revenue and expenditure, which was the keystone of the policy. A budget deficit, that always generates inflation, was seen as an unwanted p