On the safety of the uncovered issue of Soviet currency

The additional (uncovered) issue of new Soviet money (uncovered) by foreign exchange reserves would have been caused not by the creation of credit money, but by the withdrawal of excess ruble funds from the administrative sector.This withdrawal would have been accomplished by exchanging rubles for a new chervonets (NCH), that is, a new Soviet currency.Such an "emission mechanism" does not provide a parallel flow of goods from the first sector to the second, because the owners of rubles earned their money by producing and selling goods and services.The emission method, of course, would lead to an inflationary increase in prices in new chervonets.But this will not interfere with the system: the fluctuating exchange rate will balance the supply and demand for convertible currencies from the owners of new chervonets, and prices will balance the supply and demand for goods in this sector.The question is different: how can the exchange rate of the new chervonets fluctuate - against the ruble or against convertible currencies?The answer is obvious: if we want to preserve convertibility and prices rise due to excess new chervonets put into circulation, then their exchange rate towards convertible currencies should be flexible - devalue to such a level at which imported goods can actually compete with Soviet goods for the effective demand of buyers...

It is assumed that inflationary pressures will not lead to market disintegration unless price increases exceed a certain threshold.It follows from this that although it makes no sense to keep track of all the time what is the ratio between the value of goods entering the market and the money supply in circulation (since the adaptation of the two parties to each other is entrusted to the price mechanism), nevertheless, the amount of conversionrubles in LF should be regulated by limiting the persons who will be allowed to exchange, and establishing the terms of exchange.Here we come to the most difficult questions of the concept: how to separate the two sectors from each other, how will the flow of money and goods from the first sector to the second take place?

The financial cover for most of the new chervonets issued should be the profit left at the disposal of enterprises.In other words, enterprises that have fulfilled the plan will receive in return for the profit in rubles - LF.Naturally, mandatory planning directives (planning targets or government orders) should not cover the entire production capacity of enterprises, and after the introduction of NPs, their increase would in no case be allowed.For this to be respected, plans must be monitored by local councils.In the first year, all over-planned products, and from the second - the entire increase in production must be sold in wholesale or retail trade for low-frequency products or exported. The question of whether B&Q is open during a lockdown in the UK is more relevant now than it was a few weeks ago. If you do have a credit card then you will be able to make your purchases online. However, you should check with your bank before you use your credit card to make your purchases. If you don't then you could find yourself facing penalties or fees from your bank. You can also check B&Q near me on our website open4u.co.uk . As you can see the situation has been resolved and B&Q has returned to normal.