Theoretically, the answer to the question "How much money is needed in circulation?" Very simple. The offer of money should be such to buy at current prices what is manufactured in the country. If the money is less than this value, then the costs will be less than the amount of prices of goods and services that are offered. Those., Not all goods will be implemented, as a result of which prices will fall, a decline in production will occur, because For a number of manufacturers it will be unprofitable. If the money will be more than required, prices will increase accordingly. Permanent price increase is already inflation.
Thus, money in the economy should be enough to ensure the cost of purchasing goods and services in the amount of the aggregate social product produced:
Excess money \u003d\u003e over big expenses \u003d\u003e inflation
Lack of money \u003d\u003e too small costs \u003d\u003e decline in production and depression
Therefore, in practice, determine the required amount of money necessary for normal turnover is quite difficult. First of all, this is due to the fact that the amount of money is associated with existing prices, and prices in turn depend on the amount of money in the turnover. The starting point for the analysis of the money supply is the quantitative theory of money. This theory is based on the equation:
M · v \u003d p · t, where
M - the amount of money in circulation
V is the speed of money circulation, i.e. The average of times for which the monetary unit changes the owner throughout a certain period
R- average price for the corresponding period of one monetary operation
T - the average number of monetary operations for the period
M · v \u003d p · y, where
P - average price unit products (GNP deflator)
Y - the number of units manufactured for a certain period of production
(i.e. is a real GNP)
R y - nominal GNP
This equation is equation exchange I. Fisher - Shows the close connection between the amount of money, the speed of their turnover and price level.
Thus, an increase in the money supply that is not secured by the corresponding increase in the real national product leads to price increases.
The Equation of the I.Fisher is close in shape to the formula of the amount of Cammax required for the circulation of monetary units:
D - the number of monetary units required in this period to appeal.
The CR is the sum of the prices of goods intended for implementation.
The Central Committee is the amount of prices of goods devotees on credit, payments for which go beyond this period.
CPU - the sum of the prices of goods, the timing of the payments on which they arrived.
VP - the sum of mutual payments.
O is the speed of money turnover.
With the formal similarity of these formulas, their identification is unacceptable, since these equations are constructed on various methodological foundations.
Currently, deeper in meaning cambridge equation of money circulation is considered, which is considered by the theory of money as a further development of the equation of the I. Fisher's exchange:
M \u003d k · r · y, where
K is a Cambridge coefficient that determines the ratio between nominal income and the part of the money that the cash balances are formed.
In accordance with this, the Cambridge version of determining the amount of money necessary for turnover was received in the monetary "theory of cash balances".
Changes in the money supply affect all parties to economic life through a complex system of relationships between economic indicators. If the total total national product is growing, this means that the sum of the cost of supply of goods and services increases. Thus, the demand for money is increasing, i.e. The offer of money should grow. Well, if these both increments are balanced. However, if the money supply is actually more or less from actual demand for money, this will lead to inflation or decay of production.
The demand for money is formed under the influence of a variety of factors, among which psychological is occupied by the last place. Therefore, the regulation of money proposal is characterized by a market economy constantly.
Depreciation of money that manifests itself in reducing their purchasing power is called inflation.
Inflation can manifest itself not only in open formwhen there is an increase in prices, but also in hiddenWhat is manifested in shortage, deterioration of product quality.
Inflation is a complex process that is caused by a variety of reasons.
Causes of inflation:
- Internal reasons:
· Non-compliance with monetary and commodity masses in the country,
· Money emission,
· Deficit of goods and services,
· Low quality of goods and services,
· Disproportions in social production,
· Growing military spending, excessive lending
· High taxes t etc.
- External reasons:
· Rising prices in the global market,
· Increase in the country's foreign debt,
· Structural global crises, etc.
Depending on the increase in prices, the following distinguishes types of inflation:
- Creeping inflation (to 10%). It is characterized by a relatively small increase in prices. This type of inflation is observed in most countries with a market economy, does not have a destructive effect on the economy, and even acts as a kind of incentive of economic development.
- Galoping inflation (20-20%). Refers to a difficult inflationary type of inflation, since inflation processes appear unequal.
- Hyperinflation (Monthly price increase in more than 50%). It has an extremely negative impact on economic development, is regulated only by emergency measures.
Inflation has an extremely negative impact on the development of the economy, which is reflected in the increase in prices, the fall in the standard of living of the population, a decrease in general economic efficiency, political instability increases, conditions for the development of hyperinflation and stagnation in the country's economy are being created.
The structural economic crisis, who experienced Ukraine, could not but affect the monetary sphere. The maximum level of inflation was observed in our country in 1993.
The combination of all funds in the economy in cash and non-cash forms and performing the functions of the means of circulation and accumulation form a money supply.
Separate types of cash treated in the country, in accordance with the level of liquidity inherent to them, are combined into monetary aggregates (M). The unit with a higher degree of liquidity includes an integral part into a complex with a lower level of liquidity. As a result, the system of aggregates is formed, each characterizes a certain delivered and the structure of the money supply.
The M1 monetary aggregate includes the most mobile cash: cash metal and paper money (banknotes), which are in circulation (without cash cash cards) in demand bank accounts (check deposits).
The M2 monetary aggregate consists of M1, Behaxian savings accounts and small term deposits.
The monetary aggregate of the MZ is formed from M2 and major contributions.
Cash aggregates allow you to determine the amount of money in circulation. But what does it depend on? The answer to this question gives the Equation of the I. Fisher's exchange, according to which the amount of money in circulation should be such that the balance of goods between them and the cost of goods and services produced in the country, taking into account their prices.
M is the amount of money (or money supply);
V is the speed of money circulation (the average annual number of times, which is a monetary unit for the purchase of goods and services);
P is the price level (the index of the weighted average prices of goods and services);
Q is the real amount of national production.
Simple transformations allow us to obtain a formula to determine the amount of money required for handling:
Ip of this formula is clear that the more country created by the country is blowing, the more money should be in circulation. With an increase in the physical number of goods, it is necessary to build up and money supply.
Since the speed of money circulation and the real volume of production are determined by non-monetary factors, they can be considered as permanent values. Then, it is obvious that the price level and the amount of money in circulation are directly dependent: the rise in prices leads to an increase in money supply and, on the contrary, the increase in money supply leads to price increases. However, price increases will not occur if the increase in money supply will occur simultaneously with the expansion of the production of goods and services.
The amount of money in circulation directly affects their cost.
The cost of money is their purchasing power, i.e. The number of goods and services that can be bought on a monetary unit. This indicator expresses the actual value (real value) in contrast to the printed nominal value (nominal) value of money. The cost of money is in the opposite dependence on the mass of money in circulation. The more money is in circulation, the less their cost, and vice versa.
In the process of economic activity, some business entities are temporarily formed by temporarily free monetary resources (in enterprises - the depreciation fund, a wage fund, profit, etc., in the population - savings, from the state - unused budget revenues), at the same time, Subjects arise the need for additional cash (for payment of goods, services, works, etc.)
Free funds are provided by those in need of temporary use, in debt. The mechanism by which the movement of temporarily free funds occurs from their owner to the borrower is called a loan. The transfer of temporarily free cash is carried out on the basis of urgency, repayment, payability and security, i.e. The amount issued to the debt must be returned after a certain period, and for the use of money fee is charged.
Credit performs important functions in a market economy:
Ensures the continuity of the reproduction process;
Reallows funds between enterprises, industries, territories, groups of the population;
Contributes to improving production efficiency, stimulates NTP; generates credit money;
Expands the cashless turnover, speeds up the flow of cash flows;
Turns money savings into capital;
Provides the process of concentration and centralization of capital.
In the process of historical development, the loan has acquired diverse forms, the main of which is a commercial and bank loan.
Commercial loan is a loan provided by manufacturers (sellers) to consumers (buyers) in the form of a delay of payment for the goods provided, i.e. Commercial loan has a commodity form. The relationship of a commercial loan is issued by the Week.
A bill of exchange is a written debt commitment, issued on the legislative standards issued by the borrower to the lender and providing the creditor to the undisputed right to demand a debt pay from the borrower within a certain period. A bill of exchange is a payment, settlement and credit document, suitable for payment of goods and services, loan providing, returning previously obtained loans. An important property of the bill is its reference. Through the transfer inscription (indorsement), the bill can circulate among an unlimited circle of persons by performing cash functions.
The use of a commercial loan has its limits: first. It is limited by the amount of the reserve fund of the creditor; secondly, since a commercial loan is presented in a commodity form, it has a limited scope of use, for example, cannot be used to pay wages; Thirdly, commercial credit can be provided by the supplier to the consumer, but not the opposite.
The limitations inherent in a commercial loan is overcome by the development of a bank loan, which in the modern world is the main form of a loan.
Bank credit is a loan provided for a certain period of credit and financial institutions (banks, funds, associations) to individuals and legal entities in the form of a cash loan.
By timing, bank loans are divided into: short-term (up to one year), medium-term (up to 3 years) and long-term (over 3 years). Loans can be guaranteed (issued for material support, pledge, bank guarantee or other physical or legal entity) or non-gears (blank). The maximum loan amount issued by the bank to one borrower is regulated.
Payment for the use of money (loan price) is called a percentage. The interest rate level is differentiated depending on the nature of the loans and is determined in the money market where supply and demand for money are faced. The exception is the accounting rate (refinancing rate) - the interest rate, which the Central Bank charges on loans to commercial banks.
The basis for determining the interest rate on specific loans is the so-called basic rate - the rate of loan interest charged by large banks on short-term (up to 180 days) loans provided to the most reliable borrowers. Next, the base rate is differentiated depending on the term and size of the loan, on whether the loan is guaranteed or non-amgored, whether it is provided with a small enterprise or large borrowers.
Other common loan forms include:
Mortgage loan is a long-term loan secured by real estate (land, buildings, structures, etc.). As a rule, such a loan is issued for housing and industrial construction under a high percentage. In Russia, in the planned economy, the mortgage loan was absent. Today, with the transition to the market, a mortgage law has been developed, allowing the issuance of a loan secured by real estate.
Consumer credit is provided to individuals by trading enterprises when buying consumer long-term goods to the form of deferred payment (sales in installments) or banks or other financial institutions in the form of bank loans for consumer purposes (pay for training, treatment, recreation, etc.). Consumer loan has a great influence on the level of consumption and cumulative demand.
The state loan is a form of a loan, in which the borrower is a state, and creditors - individuals or legal entities.
International credit - on the movement of money between creditors and borrowers in various countries. International loan is due to the presence of foreign economic relations and exists in the form of a commercial, banking, state loan, i.e. Creditors and borrowers can be, banks, private firms, governments, international and regional organizations.
A combination of credit and financial institutions accumulating and paying funds forms a country's credit system. The main link of the credit system is banks. The market economy adopted a two-level banking system. The top level is represented by the Central Bank, which directly does not credit the enterprise and the population, but monitors and regulates the country's money circulation and manages the entire banking system existing in the country, is the Bank of Banks. The second level occupies a lot of independent commercial banks and non-bank financial and credit institutions, (pension, insurance, investment funds, loan-savings associations, credit unions, etc.), on which the main severity of work on saving accumulation and placement of loans falls. Commercial banks are independent organizations. Administratively, they are not subject to the Central Bank, although they are obliged to carry out the instructions of the Central Bank within the limits of the norms defined by law.
Banks are financial intermediaries who make money from depositors and providing them with borrowers on the terms of repayment, urgency and payability in order to profit. Range profit is a difference between the percentage that banks receive the money provided by them and the percentage they pay for the money provided to them, minus costs associated with the Bank's activities.
All banks can be characterized by different signs:
By a method for the formation of authorized capital (cooperative, joint-stock, mixed);
According to the accessories (national, joint, foreign);
By type of operations performed - universal or specialized (mortgage, investment, innovative, land, trade, stock exchange, etc.);
On the field of activity - sectoral and national economic;
According to the territorial principle - regional and national.
Basic functions of banks: accumulation of cash and savings; representation of loans to individuals and legal entities;
Conducting cash settlements and cash maintenance of customers;
Issue, purchase, sale of payment documents and securities.
All banking operations are divided into active and passive.
Operations through which banks implement resources available at their disposal are called active; Operations through which banks form their resources for active operations are called passive.
Commercial banks attract depositors' cash and use collected funds to provide loans and acquire securities. Depositors are owners of funds and provide them to banks to use. Attracted funds are drawn up in the form of check, savings, urgent contributions and from the point of view of the bank are debt obligations and belong to liabilities.
Deposits (deposits in banks) serve as a source of credit. However, banks do not have the right to issue a loan to the entire amount of deposits they have. Part of their deposits, the Bank is obliged to keep in the form of cash or contributions to the interest-free accounts of the Central Bank. The minimum deposit amount that the bank must keep in the central bank or have in cash, is called compulsory reserves. The value of mandatory reserves is determined on the basis of a standard set by the Central Bank in the form of a share (percentage) from the bank deposits.
At first glance, it may seem that the amount of mandatory reserves is a kind of insurance fund, from which commercial banks may draw the necessary means in the case of large and unexpected withdrawal of money by their depositors. However, it is not. The fact is that deposits into commercial banks can be several times more than the size of the reserves, i.e. Reserves are partial. Therefore, with sudden and large seizures of the funds of the depositors, the presence of mandatory reserves will not save commercial banks from bankruptcy. The requirement for storing a part of liabilities in the form of reserves is due to the need to control the ability of commercial banks to lending to its customers. The central bank as a coordinating body seeks to prevent an excess or lack of a loan and thereby render the necessary impact on the amount of money in circulation and on the macroeconomic situation as a whole. Actually reserves of the bank, as a rule, more mandatory; These exceeds are called excess reserves, which serve as sources of loans.
Cash Cash and debts Bank (loans issued) form the assets of the bank. If the bank's assets are more liabilities, the bank is solvent. The difference between assets and liabilities is your own capital of the bank (shares).
The most typical common operations of banks are common:
Reception (issuance) of cash;
Making calculations on behalf of customers;
Accounting checks; issuance of loans;
Purchase (sale) securities.
A huge role played by modern banks in a market economy is associated with the ability of the banking system to create new money.
Each bank has limited opportunities to expand their loans and investments. He cannot provide more than what received from depositors in a loan, cannot be borrowed and the entire amount of deposits, since in accordance with the requirements of the Central Bank, some deposits should be stored on the accounts of the latter. Nevertheless, when the commercial bank issues a loan, the money mass increases more than the amount of the loan issued.
Consider briefly as it happens. At the same time, we will remember that checking contributions make up the main part of the M1 monetary aggregate.
We will submit that the standard of reserve requirements is set by the central bank at 0.2. Then the first commercial bank that has contributed equal to 1000 may issue a loan in the amount of 800. The loose loan is spent on the payment of accounts (for the supply of materials, equipment, etc.) and enters the account of the second bank. The second bank, having contributed in the amount of 800, can issue a loan equal to 640. This loan is similar to the first consuming and comes in the form of a deposit to the third bank account, which from the received deposit in 640 may present in the amount of 512, etc. In the end, we will see that newly created deposits for the system as a whole will amount to:
1000+ 800 + 640 + 512 + 410...=
1000x \u003d.
1000 x \u003d 1000 x (1: 0.2) \u003d 5000.
Thus, the initial deposit in 1000 all banking system increased 5 times. turning it in 5000. Those. There is a multiplicative deposit expansion. In other words, the banking system as a whole can provide loans, several times higher than its redundant reserves.
Of the 5000 money supply of 1000, this is "old money", and 4000 - "new", created by the banking system. The total number of newly created money is equal to the magnitude of redundant reserves multiplied by a money multiplier.
The money multiplier (MR) is a coefficient characterizing the degree of increase in money supply as a result of an increase in excess reserves. The money multiplier is equal to a unit divided by the standard of reserve requirements (GG):
Mr \u003d 1 100%
In addition to those considered, commercial banks perform dozens of other types of operations, while the spectrum of banking services is constantly expanding. In particular, such intermediary and trust banking services such as billing of bills, factoring and trust are becoming increasingly distributed.
Accounting bills - a credit operation consisting in the purchase of bills of bills to the occurrence of payment for them. When taking the bill of exchange, the presenter of the bill of exchange is made. At the same time, the Bank charges a certain percentage, reducing the amount paid accordingly. After the expiration of the bill of exchange, his nominal amount is charged from a person who issued a bill.
Factoring is a type of banking activity, which is to purchase the commitments of the Client, the Advancement of the Client in the amount of 60-90% of the amount of obligations with the final recalculation after repaying the debt. For the provision of these services, the Bank charges commissions.
Trust operations - the bank's execution of various functions related to property management, pension funds of certain companies, storing securities by proxy of the client. Focusing trust assets, banks have the opportunity to significantly expand their sphere of their activities and influence, in this way, thus high profits.
Money is a means of circulation, performing the role of an intermediary in the exchange process. They have a universal consumer value, are the universal incarnation of the cost and clot of social labor. Being a universal product, they act as the category of national economy. Money is characterized by liquidity, high-capacity to sales, exchange with their help is much facilitated.
Issue of money in appeal
The cash circulation is based on commodity production, and cash flow that retail trade turnover serves. Money acts as a means of circulation and payment and are transmitted from some subjects to others as payment for goods, services, works, etc. The means of exchange are: exchange coin, paper bills (treasury tickets), banknotes. The state controls the amount of money supply, not allowing inflation.
Quantity, weight of money in circulation
To ensure the normal functioning of the financial mechanism in the country, it is necessary to maintain a sufficient amount of money supply in the subjects of money circulation for the implementation of trade and other financial transactions. The state should have such a volume of money supply so that it allows to ensure the growth of the national product (GDP) and did not allow inflationary processes. This requires constant state regulation of the number of money in circulation.
Money circulation rate
The rate of money circulation is a category, which is a number of revolutions in circulation of money during the year. This is the ratio of the nominal gross national product to the volume of money being in circulation. With an increase in the growth of non-cash and cash money, there is a fall in the national currency.
In the short term, this category is a permanent value, and in the long term - may change slightly. The rate of circulation of money supply is under the control of the banking system of the country, it depends on the technical support of banking institutions, the availability of computers and satellite communications.
Cash in circulation
Money takes an active part in the economic turnover of the state, their release is permanent. Cashless money come in turnover in the form of loans that provide commercial banks to their customers. At the same time, cash is in turn when issuing money banks from the cash register. Customers are provided with the opportunity for both repayment of bank loans and cash in cash.
Handling paper money - wear features, replacement
Monetary circulation is a continuous process. As a means of payment, money in the process of use can wear out. The central bank is made of the insistence of obsolete and inductant coins and banknotes, introducing new ones. Typically, old and new banknotes are also in circulation. The complete replacement of monetary signs is due to the monetary reform.
Money mass is a set of purchasing, payment and accumulative funds serving economic ties belonging to individuals and legal entities as well as the state. This is an important quantitative money rate.
At the beginning of the 20th century, in the gold circulation, the money supply structure was in developed countries: gold coins were 40% of banknotes and other credit money - 50% and remnants in accounts of credit institutions 10%. On the eve of the First World War, respectively, 5%, 22%, 67%. Gradually, golden money was completely disappeared from the appeal, the dominant position took the undequensed credit money, which began to act in cash and non-cash form.
To analyze the change in the movement of money for a specific date and for a certain period in financial statistics began to be used first in economically developed countries, and then in our country, cash aggregates: a / a, a //. A / g, a / s, and / .,.
The unit l / o includes cash in circulation: banknotes, metal coins, treasury tickets (in some countries ^ Falling coins allow minor transactions. It is minted from cheap metals. The real value of the coin is significantly lower juminal, to prevent their melting for profitable sales in the form of ingots.
The prevailing role belongs to banknotes. Treasury tickets (paper money) are produced in underdeveloped countries.
Aggregate a /; \u003d A / B + funds on current accounts of banks. Funds in bank accounts can be used in non-cash form, a damflower to cash and without translation to other accounts. For calculations with the help of funds on these accounts, their owners expect an exequate assignment or checks and letters of credit.
A / r \u003d M unit (+ urgent and savings deposits in commercial banks, as well as short-term government securities.
The aggregate MU \u003d A / G, + savings deposits in specialized credit institutions, as well as securities, applying to H (the Enezhny market, including commercial bills issued by enterprises. This part of the funds invested in securities is created by H) ancores system. But is under its control.
Unit A / (\u003d M] + various forms of deposits in credit institutions.
There is an equilibrium between the aggregates, otherwise there is a violation of money circulation. Practice shows that Lacrynaer equilibries at a / g\u003e mi; It is strengthened at a / g + MS\u003e A //. In this case, the cash capital goes from cash to non-cash.
An independent component of the money supply is a monetary base. It includes a MG + aggregate: Assa banks, mandatory reserves of banks and their funds on correspondent accounts in the Central Bank of the Russian Federation.
Analysis of the structure and dynamics of the money supply is of great importance in the development of credit (Enesh politics. Central Bank of Russia.
The law of the article and the form of its appearance in the field of treatment - the law of DEN is characteristic of all social formations in which commodity-cash relations are existed. Analyzing the development of value forms and d.
Appeals, K. Marx discovered the law of D.O., the essence of the cat is in the fact that the amount of money is needed, it is necessary to be the F-and CP-WA, should be equal to the amount of prices of goods sold divided by the number of revolutions (speed Appeals) of the same name d. units. Law D.O. Expresses the economic interdependence between the mass of accessing goods, the level of their prices and the rate of money circulation.
Idea: money should be exactly so many products, but it is necessary to subtract: what is sold on credit, intercomposition and add loans with the development of commodity production, Den-about Obro-I, the use of money in the F-and CP-WA payment law before. Acquires a trail. view:
The amount of money required in the quality of the CP-WA and the CP-WA payment \u003d (the sum of the prices of goods sold and services - the amount of prices of goods filed on credit, which did not come + the amount of payments for obligations - sides of mutual payments ) / Average number of money revolutions as the CP-WA of the appeal and the CP.
M \u003d (PQ -K + A - B) / V
The need for host in money is also determined by the price equation for goods and services. The opposite effect on the amount of money necessary to appeal is:
The degree of loan development, because The biggest part of the goods are sold on credit, the less money is required in circulation
Development of non-cash settlements
The speed of circulation of money.
With a metallic circulation, the amount of money was regulated by spontaneously, with the help of money in the F-and the accumulation of treasures: if the need for money has been reduced, then unnecessary money (gold coins) went out of the treasure circulation, if it increased, the tide of money in appeal Treasures. Consequently, the amount of money in circulation has always been maintained at the required level. When applying to the gold banknotes, the possibility of their free refuse to metal eliminates the finding of their superfluous amount.
If the appeal is serviced by banknotes, not exchanged for gold, or bd (Treasury tickets), then appeal by N.D. Performed in accordance with the law of paper-money circulation: "Specific law of circulation by B.D. It can only arise from their relationship to gold, only from the fact that they are representatives of the latter. And this law is reduced to the fact that the release of B.D. Must be limited to their number, in which there really would be a symbolically represented gold. "
When the number of bd released. It will be equal to the theoretical number of golden money necessary for the appeal, no negative phenomena will arise, paper money or undoubted banknotes will regularly play the role of D., i.e. Deputy Gold Money. The specified requirement ensures the sustainability of the money and is valid in all common formations, where the appeal is destroyed.
The cost submitted by each B-D unit corresponds to the st-ti of the amount of gold, which is necessary for the treatment divided into the number of those in circulation by B.D.
No limited emission of money leads to a violation of this law, overflow the scope of money circulation of excessive monetary signs and their impairment.
The conditions and patterns of maintaining money circulation are determined by the interaction of two factors: the needs of the host in the money and the actual flow of money in turnover. If there is more money in turnover than the hoz-wo, it leads to their impairment, lower the purchasing power of the unit.
Equation F.
MV \u003d PQ M-money supply, only for metallic circulation. N. 20th century.
Money circulation is the use of money in the payment tool function and means of circulation. Factors that determine the required amount of money to perform the function of the means of circulation are:
The number of goods sold in the market (P);
Commodity price level (q);
Amount of payments for obligations (A);
The sum of the prices of goods sold on credit (k);
The sum of mutual obligations (b);
The rate of circulation of the monetary unit of the same name (V).
Based on the laws of the commodity circulation, K. Marks formulated the general law of money circulation:
M \u003d ------------------,
where PQ is the sum of the prices of goods sold and services;
M is the amount of money required for circulation.
From the law, the principle of money circulation (before) is the limitation of the money supply by the needs of turnover. The deviation from the general law of circulation is due to the functioning of not full-fledged money, but the value of value. As a result, the release of paper money exceeding the limits of needs entails increasing the overall level of commodity prices. The need of farms in money depends on the demand of enterprises, states and individuals for purchasing and payment resources, as well as on the means of accumulation.
The amount of money in circulation depends on the prices of goods, since the latter, being a monetary expression of commodity costs, consist before the appeal, the amount of money required to implement this amount of commodity prices should be received.
Two factors affect the money supply: the amount of money and the speed of their turnover.
The amount of money supply is determined by the state - the issuer of money, its legislative power. The growth of emissions is due to the needs of commodity turnover and state. In Russia, the main reason for increasing the money supply is a state, a huge deficit of the federal budget, which was largely redeemed during 1992-1994. Issue money in appeal. Traffic turnover at the same time in real terms even decreased due to the fall in production rates.
Another factor affecting the money supply is the speed of money circulation, i.e. Their intensive movement in the performance of the functions of circulation and payment. To calculate this indicator, indirect methods are used, including:
The speed of money in the circuit of the cost of the social product or income circuit is defined as the relationship: GNP / money supply
This figure indicates the relationship between the money circulation and economic development processes;
Money turnover in the payment turnover is determined by the ratio: the amount of money in bank accounts / average annual amount of money supply in circulation
This indicator indicates the rate of non-cash settlements. Other curvature rates are used.
The rate of circulation of money is influenced by general economic factors, i.e. Cyclic development of production, the pace of its growth, the movement of prices, as well as monetary (monetary) factors, i.e. The structure of the payment turnover (the ratio of cash and cashless money), the development of credit operations and mutual settlements, the level of interest rates for credit in the money market, as well as the introduction of computers for operations in credit institutions and the use of electronic money in the calculations. In addition to these common factors, the rate of money circulation depends on the frequency of the payment of income, the uniformity of spending the population, the level of savings and accumulation.
Increased money supply with the same volume of goods and services in the market leads to impairment. Money, i.e. Ultimately one of the factors of the inflationary process.
The amount of money required to perform the function of money as a means of circulation depends on three factors:
1. The number of goods and services sold on the market (direct link);
2. price level of goods and tariffs (direct link);
3. The speed of circulation of money (contact is reverse).
All factors are determined by the terms of production. The larger the public division of labor, the greater the amount of goods and services on the market; The higher the level of productivity, the lower the cost of goods and services and prices.
The amount of money for circulation and payment is determined by the following conditions:
1. The total volume of applications and services (direct dependence);
2. The level of commodity prices and tariffs for services (direct dependence, since the higher the price, the more money is required);
3. The degree of development of non-cash settlements (inverse relationship);
4. The speed of circulation of money, including credit (dependency inverse).
Thus, the law determining the amount of money in circulation has the following form:
The amount of money necessary as a means of circulation and means of payment \u003d (the sum of the prices of goods sold and services - the amount of prices sold goods on credit, the payment time on which did not come + the amount of payments for debt liabilities - the amount of mutually paying payments) / Average money revolutions both referring tools and payment funds
It is clear that the scope of commercial circulation, accepts not any amount of money. Otherwise, the money is depreciated, the prices begin to grow. Therefore, various formulas are invented by economists to determine the amount of money. The most famous of them are three formulas. The first formula is given in the capital of Marx. It is written as:
K \u003d (TC - KR + P - VP) / CO, (1)
where k is the amount of money required for circulation;
Shopping center - commodity prices or the amount of prices of goods subject to implementation;
CR - the sum of the prices of goods sold on credit;
P - payments on loans for which the payment period has arrived;
VP - mutual payments;
Co - the number of currency of monetary units, for example, per year.
It is clear that the larger the commodity mass in monetary terms, the more money should be available. The more turns makes each ruble per year, the less available the amount of money.
But in the formula there are three more components: this is the Kyrgyz Republic, P, VP. What are they needed in this formula?
And in order to show that the goods sold on credit (CR) do not require cash during the purchase. Therefore, the Kyrgyz Republic is deducted in the formula. But the goods sold on the loan, over time, allocate payments. So, payments on loans (P) must be added to the formula. VP is mutual payments. For example, one buyer purchased from another batch of grain. The second buyer, in turn, demands from the first to put him on the same amount of meat products. As a result, there is a mutual exchange that does not require the availability of money. Therefore, in the formula VP is deducted.
In the West, the equation of the amount of money proposed by I. Fisher (USA) is most often used.
Mv \u003d pq, (2)
where M. - amount of money (or money supply: mani);
V. - the speed of circulation of money;
R - price level;
Q.- Number of goods and services produced in the country for the year.
As a result, the amount of money (mania) depends
M \u003d PQ / V.
That is, Fisher's formula resembles the formula for Marx, or in any case, they are very similar. I think more on ideological considerations is not used by the formula of Marx, but is used by Fisher's formula. Although Marx formula is more accurate and takes into account almost all the basic functions of money.
Also enjoys popular in the world of Marshall and Pig Formula:
M \u003d (k) ni(3)
where TO – marshall coefficient showingwhich proportion of national income (NI) business entities, including the population,prefer to store in the form of cash or desired cash balances, which are made of them temporarily from circulation.
Example: If the income is 100 TRL. and people plan to keep in the form of cash on average 25% of their income, then TOit will be equal to 0.25. BUT M. \u003d 0.25 x 100 \u003d 25 trillion. Doll.
This means that cash in inventive circulation should be 25 trillion. dollars under national income of 100 trillion. Doll.
Such are the main equations of the amount of money that is used today around the world.
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