monetary system - is historically a form of money in the state.This structure exists in every country.The concept of the monetary system is fixed by law.Like any other, this structure consists of certain components.
monetary system, including the subsystem of cash and non-cash transfers, contains, first of all, the principles by which it is carried out the organization.They are the rules of formation of structures that are set by the state.These rules, and the other elements of the monetary system have a close relationship.In this first direct impact on all the other components.
For developed countries can identify the main elements of the monetary system.
Currency is a mark set by law.It is used in the comparison of the expression and the value of all goods.Typically, this component is formed historically.However, in some cases it may be set new name sign.
scale of prices is considered as the choice of the monetary unit of the state and as a way of expressing the value of the commodity by the weight of the metal content of the money in the chosen unit.The latter concept, however, has lost its economic importance.This is due to the fact that credit money is not endowed with its own value and can not express the value of other goods.
Types of money is legal tender.Typically, these elements represent monetary system treasury and bank notes, change coins.Typically, in countries industrialized, treasury notes are not issued.In a number of developing countries paper money is very common.
Providing money in one form or another is set by the state.For example, can be used precious metals, insurance policies, inventory holdings, government and bank guarantees, gold, currency, freely convertible, and so on.Violation of the rules or the use of other types of security should not be tolerated.
emission system is the order of the treatment and release of money, established by law.Relevant transactions (withdrawal and release) by the Central Bank and the Treasury.Central Bank enjoys the sole right to issue banknotes, which constitute a significant part of the cash circulation.The Treasury, as the executive body, issues treasury coins and tickets.These elements of the monetary system made of cheap metal grades.They are in developed countries accounts for about ten percent of the cash issue.
Central Bank holds equity operations in three areas: the provision of credit facilities in the form of credit available rediscounting commercial bills, treasury lending under the implementation of the provision of securities, as well as the production of banknotes through exchange them for foreign currency.
effort to reduce the likelihood of fluctuations in the economic processes, the government has taken various measures to control the production process.It uses two systems - money and credit.It should be noted that these structures are interconnected with each other, particularly in connection with the domination of borrowed funds.
Under the influence of increasing inflation and the crisis in many countries with developed industry in the mid-seventies of the 20th century has been extended "targeting".Thus, the targets established for the settlement of the increase in money supply and credit.
