money supply and monetary aggregates - is the concept of interrelated and interdependent.
money supply is a collection of payment, purchasing and accumulated funds belonging to physical and legal persons and property of the State involved in the maintenance of economic relations.Money supply describes the movement of money in quantitative terms.
Under the weight of money and realize the cash and non-cash means.According to the structure, it is divided into the active part (those funds that cater to farming) and a passive part (accumulation and bank balances that are potential means of payment).
mass of money is not easy and is not the same as cash.In fact, the share of cash in the amount of money is not so great, since all economic agents make deals among themselves on the basis of non-cash payments through bank accounts.
level of development determines the stability of the currency and the share of cash in the total mass of money.For example, in the US, this figure does not exceed 5-10%, with the CIS countries - 30%.The more cash in the total weight of all the money the country is, the less flexible is very monetary system.Money supply and monetary aggregates have to be in the right proportion to ensure the normal functioning of the monetary system.
As part of the mass of money allocated such components that can not be used directly as a means of purchase and payment.This means on deposit accounts, deposits, savings deposits, shares, etc.They are called "quasi-money" (from the Latin. "Almost").This part of the money in the total money circulation is a very large and powerful part.
structure of the money supply and its composition constantly changing.At different stages of development of commodity exchange and payment relations, it was different.When gold circulation at the beginning of the last century, the structure of money supply in developed countries was approximately as follows: 40% were gold coins, 40% of the bill, 10% balances different kinds of lending institutions.Immediately before the first world war, these figures changed as follows: 15%, 22%, 67%.
To analyze the cash flows and changes in the process used for a certain period money supply and monetary aggregates different categories.
Monetary aggregates - a measure of the amount of money or financial assets, of which the mass of money.
money supply and monetary aggregates in this sense, are interwoven.The so-called units represent a stepped hierarchical structure in which each subsequent unit will include the previous ones.Each subsequent rate at this involves less liquid assets.They are expressed in such concepts as monetary aggregates M1 m2 M3, M4 and M0.
M0 -nalichnye money in circulation (coins, bank notes, treasury notes).
unit Ml includes M0 and means on current accounts used for cashless payments.
aggregate M2 comprises Ml and deposits in commercial banks, short-term securities of a public nature, which can be in cash or checking accounts.
MOH unit includes M2 and savings deposits with credit institutions and money market securities.
aggregate M4 includes M3 and deposits with credit institutions.
Monetary aggregates in Russia for the calculation of money supply used the following order is M0, Ml, M2 and MZ.For Russia the money supply a high proportion of cash, and this trend is not going to go into decline.Money supply and monetary aggregates Russia for a long-term development of the monetary system must move into the mainstream more weight to non-cash payments.
