ABSTRACT
Money under socialism carries out the function of circulating medium. That is, it serves as means for making possible the circulation of goods. Any excessive expansion of media of circulation is always linked with an excessive extension of means of payment and vice versa. With a system of central price formation and with the old administrative system of management, prices of different types of goods had to deviate more and more from the value of goods, and money, therefore, lost de facto its function as a measure of value. A very important feature in the economic system of management is the central orientation or stimulation of all financial processes, assuring their differentiated mutual effect and their utilization to achieve various economic-political purposes. It is the abolition of private ownership of means of production and the introduction of economic planning that provide conditions and instruments of such conscious control of national economic development.
