money supply - is, in fact, the stock held in one country money.Its structure consists of notes and coins of various denominations, as well as non-cash funds to the bank accounts of the state and its residents - individuals and legal entities.It should consider the possibility of barter and settlement system as well as lending, since these figures lead to an increase or reduction of the amount of cash used in the same state.
system units
Since 1992, Russia's money supply is calculated using the units of which included different kinds of means of payment.These figures are a special group of bank accounts, taking into account the conversion of them are non-cash resources in liquid assets that can be quickly spent.The most commonly used M0, which includes all kinds of money, have the highest degree of liquidity.If the structure to simplify as much as possible, allocate cash and checks prescribed form, which can be exchanged at a bank for banknotes, or to use as an independent means of payment.
index M1 is more advanced, and its structure includes both the means of payment that are typical of M0 and non-cash money held in current and settlement bank accounts.In this situation, liquidity becomes lower as the deposits of the population and legal entities to convert into cash is not possible.
Money supply and evaluated by means of M2, which comprises applying to the country's paper money, as well as other payments and purchasing tools, including bonds, notes and certificates of deposit.For non-cash form of this index include term deposits, which are located in bank accounts until the deadline of the contract between the citizen and the financial institution.
The Russian economists in carrying out assessments of the money supply M3 is used, which is composed of securities.As a rule, public bonds, which are not full-fledged means of payment.However, under certain conditions, they are transformed into real money, if such securities are sold on the open market.
structure
We must remember that the structure of the money supply is not constant, it changes quite often.With the development of market economy, the number of banknotes in circulation is almost not growing, while the government, citizens and business entities to perform all kinds of payments are used mainly non-cash funds on plastic cards or bank accounts.In Russia, the money supply and its structure is significantly different from the situation typical of the western countries.
For the calculation of about 42-65% are cash bills, and only a small portion falls on non-cash means, but every year more and more citizens are paying for goods purchased by credit or debit cards.A money supply associated with the ratio of all units from M0 to M3, which is characteristic of a certain period.Change its volume depends on the increase or decrease in the number of outstanding means of payment, as well as increase or decrease their rate of turnover.
the money supply leading economists have to be adjusted in order to avoid the risk of unexpected inflation.Estimated components of each of the units, and, if necessary, carried out measures to increase the share of non-liquid means of payment.For example, government securities issued and sold to the population, developed programs to attract cash in banks using the deposit programs.
