Money creation is a process of manufacture of banknotes and coins in circulation.On its influence on the economy of a country specialists can talk for hours, because there are many contradictions.After all, it is considered to be a tool that can lead to both improvements and to deterioration in the financial sector.
First of all it is worth noting that the money issue is a privilege that belongs to the National Bank.It regulates the money supply: the shortage of releases and withdraws as needed.There are two forms of issuing funds: cash and non-cash.The first is much wider, because in addition to the money makes issuance of means of payment.In addition, the right to exercise the non-cash issue and also have commercial banks, which distinguishes it from the money form.
emission of money in Russia corresponds to a number of principles:
- monopoly, that is, the right to issue banknotes is endowed with only the central bank of the Russian Federation and only he decides when and how much to withdraw, or to release them.
- may be carried out without security.Issue of banknotes has no actual security gold or other precious metals, and manufacturing costs significantly less bills than their nominal value.In addition, the absence of an official relationship between the national currency and in gold.
- is the official means of payment, confirmed by the current Russian legislation, the only free tool that can be used in cash payments to contractors.
- Russian ruble can be exchanged for each subject, to produce documents proving the identity, and in any amount.There is no particular restriction.
- government should not specify the national bank the timing and amount of release of money, especially in the form of an ultimatum.
Increase in cash in the money supply by means of a special unit called the cash processing center.It, in turn, includes a reverse cash and reserve fund.The first is responsible for the release of funds to commercial banks, and receive cash in case of formation of surpluses.A reserve functions as a storage means.Moreover, while there are bills in the stock, they can not be called money because it does not operate the main functions and are merely signs money.
cash processing center is located in the department of the National Bank, which has an emission rights.Accordingly, it was he who decides on the transfer of funds from the reserve fund in the circulation vault.It is carried out at a time when the flow of funds is not increased by the planned regulations, and in several commercial banks increases the need for extra cash.
non-cash issue arises in the process of development and expansion of lending, so it can be made and other lending institutions.It involves increasing the money in the accounts due to enter into any transaction with the bank.It is believed that this form is the primary issue, that is, first there is the growth of bank accounts, and then there is a need to increase the money supply.
worth noting that the non-cash and cash are in constant interaction and occasionally takes the form of one or the other.For example, when paying for a loan or deposit carried out an increase in non-cash assets.And when withdrawing money from bank accounts increased amount of cash.But the concept of "money issue" involves not just a transition from one form to another, and not just the money supply in circulation and the real increase in the money supply.
