Without money turnover can not be the normal course of life.Money was at all times.Cash released into circulation when commercial institutions give cash to its customers of the special cash desks.So what is the issue?It is a process of release of money into circulation, resulting in much the money supply grows.Emissions produced to meet the additional needs of market participants in the funds for the implementation of current operations.
Issue - market regulator ?
There are various forms of the issue of money.Lending is one of them.Loans to banks may be issued only within the available means and resources, which are represented by a set of their own, borrowed and borrowed funds.With rising prices, an additional need for money.And there is a need to issue.What is the issue in a command economy?This release into circulation of money (according to the credit plan).The increase in the money tree is only possible if it fills the real economy.If we take Russia, there is the main cause of a significant increase in the money supply over the past few years has been an acute shortage of the state budget.
In 1992-1994 it is extinguished through the issue of money in circulation in parallel reducing the turnover of industrial decline.Since we are talking about the issue, it is worth mentioning the term, which often occurs in the framework of this topic.We refer to the prospectus of the shares.This document discloses information to investors regarding the alleged issuance of securities.In the prospectus, as a rule, there is information on the current release.It contains information about each tranche, the principles for calculating interest payments, credit rating and other useful information.
Types issue
There are two types of issue: cash and non-cash.Consider that this issue of cash?First of all, I must say that it is carried out by the Central Bank.The mechanism of emission, in fact, are the operation of a financial institution with other commercial financial institutions.In addition to lending, a significant role in the release of funds play and other activities of the Central Bank.In countries with advanced economies (US, UK, Germany) to such transactions include the purchase of government securities, bills of leading companies.For the Russian Federation and other countries with economies that are under development, the major role played by the purchase of freely convertible currency from exporting companies and financial commercial structures.
necessary to separate the concept of "the release of funds" and "issue".If the issue is not always possible to observe the growth of the money supply in the total turnover, as there is and inverse processes (ie, withdrawal of funds: the payment of loans, depositing of funds on deposit accounts, elimination of worn currency)).In this case, it made a change in the structure of the total money supply.And in the case of the second concept is observed otherwise.After all, in fact, that this issue?This is a direct increase in the money tree.
