The role of monetary instruments in the development of the crisis and the “war economy” (the first half of the ХХ century)

The article examines the key factors of instability in the first half of the twentieth century, clarifies the conditions under which national industrial crises become global. The analysis of the works of famous Russian economists helps to reveal the algorithms of the development of industrial and global crises, to characterize their features. The author argues that with the rise of money, the contradiction between supply and demand increases many times, and the cyclical nature of economic development becomes a permanent process in the capitalist system. Free migration of loan capital accelerates the development of global overproduction crises. The article suggests that the processes of transformation of technological structures in capitalist reproduction system create prerequisites for the development of a special type of economy — ≪military economy≫. The concepts of ≪military economy≫ and ≪military conjuncture≫ are formulated. It is shown that ≪military economy≫ leads (in addition to huge human and material losses) to a number of systemic changes in the national economy of the country: narrowing of the sphere of civil production, budget deficit, growth of public debt and the deformation of pre-crisis proportions of national economy. First experiences of such market regulation relate to World War I and World War II. The author considers the specific function of monetary instruments in conditions of ≪military conjuncture≫, reveals the economic meaning of ≪price revolution≫ concept of the monetary ≪version≫ put forward by M.I. Tugan- Baranovsky as a systemic factor of economic distress in emergency situations. The author concludes that global crises, the demonetization of gold and its displacement by credit exchange marks in the first half of the twentieth century, the transition to new technological structures are changing the forms of integration and creating conditions for changing the political and economic ≪map≫ of the world. The result of the ≪war economy≫ development during major world conflicts is the change of currency leaders and the accumulation of gold and foreign exchange reserves, the ≪redistribution≫ of sales markets and technological re-equipment of production.

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