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Money the global supply and global demand are constant

Money has evolved in
various forms, thus increasing the way
modern society functions. In all of its spirit, the increased circulation of
money in the market would mean an increased amount of distribution and
production of resources. The ease of
communication has led to a variable
number of currencies which are majorly operating and integrating world market.
The inflow and outflow of the goods and services
within the boundaries are regulated not
only by the policies of WTO or respective foreign policies but also by the ease
of doing business. The ease of doing
business and consumption of goods or services are direct products of money as a
function in the market (Michel, 2002).

The curious case of global capitalism is based on an
integrated market free of doing business. The Marxist tendency of devaluing the role of money in a capitalist
market seems to be contradictory in
nature (Marx, Karl 1876).  The
significance of money in a capitalist market is not merely limited to the
supply and demand between two or more parties. The circulation of money,
therefore, isn’t a position and post result
of global capitalism, for it plays an inclusive part in the development of
capital. The forefold creation of capital
increases the chances of trade and commerce between various countries.  Once the exponential growth of the capital
sets in it is, therefore, merely a matter of time post which money would act as
a collateral bargain in the world economy.

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Another key function of money in the global capitalist
market is its role in price mechanism. The price as a factor is determinant in
the global demand and supply provided that the various financial corporations and consumers hold the demand and
the supply constant. Once the global supply and global demand are constant the
reach of money and its unequal flow would lead to a change in prices of the own good of any given commodity. The
increase or decrease in price (keeping supply and demand curve constant) would
set a spiral effect in motion. The first effect of global price mechanism would be the shift from a position of
equilibrium to disequilibrium, as a consequence of a change in demand or supply due to the own price of the good. The
spiral effect of global price mechanism
would prove significant in the change of trade and commerce. For instance,
assuming that due to certain reason or increase or decrease in the supply of
the money the resultant price of the own good gets decreased. This would move
the point of equilibrium lower than its origin. Once that happens, it sets a
spiral effect in motion leading to excess supply or demand in the market. This
spiral effect can either be diverging or converging
depending on various global factors including money.

We have discussed the classical functions of money such as
circulation, ease of doing business and global price mechanism. The emergence
and evolution of new currencies act as a catalyst in all the above factors. As the currencies become increasingly digital
and decentralized the real nature of
global capitalism sets in. This would result in
the promotion of features and function of global conglomerates and financial institutions
(Geoffrey, 1984).

The other key components
of global capitalism are the various MNCs and global conglomerates. The money invested by the various MNCs severely affect
the growth and the development of domestic industries of a country. While the global nature of capitalism is only aggravated
by the increasing FDI of a country it also proceeds to enter the vicious circle
of money supply back to the origin country. The invested money acts as the
injected money for the development of infrastructure of one nation and the exploitation of resources of the other. Again,
the supply and demand of money differ in
various countries depending on their willingness to contribute and accept
global trade and commerce (Geoffrey, 1991).

The beauty of global capitalism and the role of ‘invisible
hand’ can be summarised by the
contrasting nature of economies like China. A communist China contributes to
the global economy as much as a principally capitalist USA does. This formation
and integration of global community and
capitalism are further aggravated by the
presence of money, in large. Money not only acts as a catalyst for trade or
injection for a country’s resources due to investment, rather it prevents the accumulation of money in one hand, the effects
of which are deteriorating for any global
community (Ben, 2003).

The emergence of cryptocurrency
is another catalyzing factor of global
capitalism, the normative effects of which are still under speculative phase.
The uncertain and decentralized character
of cryptocurrencies formulates as an incentive
for local and global traders to exchange goods and services. An intriguing
feature of crypto money is the fact that the governments cannot regulate the
supply or demand of cryptocurrencies.
Though, skeptical, the blockchain
mechanism further increases the global trade and the sustainability of global capitalism. 

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