Role of money in Capitalistc Economy
Money is the sovereign queen of all delights. For her the Teacher teaches the lawyer pleads, the dancer, the soldier flights
In capitalistic Economic money is the pivot around which all economic activities, cluster. Money is an indicator as well as a survivor of wealth . The importance of money can be judged from the powerful nfluencei which it exercises on the volume of production, direction of production, pattern of consumption, method of distribution in the country.Capitalism is an economic system based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit. Elements central to capitalism include capital accumulation, competitive markets, and a price system.
There are multiple variants of capitalism, including laissez-faire, welfare capitalism and state capitalism. Capitalism is considered to have been applied in a variety of historical cases, varying in time, geography, politics, and culture. There is general agreement that capitalism became dominant in the Western world following the demise of feudalism
Economists (including political economists) and historians have taken different perspectives on the analysis of capitalism. Economists usually emphasize the degree to which government does not have control over markets (laissez-faire), as well as the importance of property rights. Most political economists emphasize private property as well, in addition to power relations, wage labor, class, and the uniqueness of capitalism as a historical formation.The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy. Many states have what are termed mixed economies, referring to the varying degree of planned and market-driven elements in an economic system.
