issue of money is one of the basic elements of the functioning of the monetary system.Issue of cash as well as non-cash, money happens all the time, but their number is stored in the back, as is happening at the same time and the process of delivery of cash to banks.The emission of money - this is not the production of new banknotes, but only such a release into circulation, in which there is an increase in the money supply.
It can take the form of cash and non-cash.In the first case it is called a money emission treatment.A monopoly on it belongs to central banks of issue of the country (in Russia - the Central Bank).
No other banks and organizations under the law the right to increase the money supply can not be given.Only then can an accurate monitoring and control of the formation of M0 - bills that are both in circulation outside the banking system.
issue of money related to the work of all the banks.In our country operates a two-tier banking system, which means that the emission mechanism works on the basis of the banking multiplier.That is the animation (increase) in cash on deposit accounts occurs when they move from one to the other commercial banks.Multiply the money can not be a commercial bank, in this process involved the entire banking system.Credit multiplier is the engine of the entire process, because it is only when lending to the economy;deposit - reflects the increasing amount of money in bank deposits.
money multiplier mechanism is associated with the free reserve - it's all the resources of commercial banks, which can be used at some point for active banking operations.After all, commercial banks have the right to conduct such transactions only within the limits of the resources that are in the accounts.Money on deposit may be increased up to five times the volume.Mechanism cartoon central bank, regulating monetary circulation in the country.
issue money assumes issuance of all forms of currency.The turnover produced not only paper money.Banknotes issued by the Central Bank, are its debts and liabilities are recognized in the balance sheet.Treasury emit Treasury notes, as well as a bargaining chip.In addition, there is also a kind of deposit and checkbook currency issue, where the increased deposits in accounts at banks Serviced customers, which leads to an increase in the number of checks involved in the maintenance of non-cash payment transactions.
When issuing banknotes in circulation comes a natural growth of the money supply, which is one of the causes of inflation.When you call the number of gold money in circulation was regulated by the needs of treatment, when gold is deposited in the form of the treasures in the treasury or re-enter into circulation.Today, with paper money and credit forms of handling money issue is not able to regulate itself.The increase in money supply is necessary for the growth of production and sales of the goods produced by the economy.But in a situation where the money supply exceeds existing demand for them, begins a rise in prices inevitably leads to inflation.
Issue of cash is carried out by means of their release into circulation, accompanied by an increase in the mass of cash in circulation.The central bank forecasts the size of future emissions and distributes it to the regions.
constantly moving money in cash and non-cash form, moving from business entities in banks, and vice versa.Currencies do not have a value equal to the nominal value.Only cash can apply as carried out non-cash assets are recorded only in the form of records on bank accounts.
