ABSTRACT

This chapter attempts to conduct a preliminary study on the "Commodity-Currency" balance sheet and its static mathematical model. Under socialism, the relationship between commodity production and commodity exchange requires that commodity availability and currency purchasing power should not only be consistent in total amount but also compatible in their structure. Nowadays in the balance system of the Chinese national economy, the material balance sheet is isolated from the financial balance sheet. The input-output balance sheet (IOBS) that is currently used in China in the form of currency is divided into four quadrants. The mathematical model of "Commodity-Currency" balance is set up with a mathematical formula which establishes the real economic connection between commodity and currency movements in the whole reproduction process according to the "Commodity-Currency" balance method. Based on the static mathematical model of "Commodity-Currency" balance, the chapter draws an economic development plan such as that of Residents Welfare Fund, which relies on computer calculation.