ABSTRACT
Exchange is determined by production. The fact that socialist production is a new type of production in the history of mankind determines that socialist exchange must also be a new type of exchange in the history of mankind. The development of socialist industrial and agricultural production is the material basis of socialist product and commodity exchanges. Socialist commodity exchange must also have appropriate channels in order to facilitate goods circulation and fully exercise its function. In socialist society, production, exchange, and distribution are all carried on according to plans. The process of socialist commodity exchange is even more complex. The objects of commodity exchange are mainly consumer goods, but they also include a certain amount of means of production. The economic conditions of socialism have changed the nature and functions of money. The socialist state can expand and contract the money supply in a planned way, achieving planning in money circulation in order to make it serve socialist construction.
