Money emission is called A set of actions that are aimed at developing, manufacturing and issuing monetary signs into circulation. They can be published central Bank (emission) or treasury as banknotes, treasury tickets, coins. This option is also called cash issuance.
Another option is possible - when due to increasing the turnover of existing money commercial banks Increases the amount of money in circulation. A similar effect can also lead to serious technical innovations - for example, the emergence of broad population access to ATMs. This species is called non-cash emissions.
Another option - This is a planned issue by which the replacement is carried out. cash In the equivalent volume due to the windiness of the monetary signs that were in circulation.
Consequences of money emissions
When the amount of money increases in the circulation, it stimulates the total demand of consumers, that is, in fact, serves as a stabilization policy factor. In this case, it is possible to make a false conclusion that emission of money can attribute to the factors of economic growth. However, in fact, its final result is inflation. After all, an increase in the amount of money in turnover leads only to the increase in price level, which cannot lead to an increase in production in the long term. In addition, other factors of demand are also provided to the purchasing power of the population, including non-price.
As a rule, the need for money emissions consists in the conditions of budget deficit. However, the uncontrolled increase in money supply may cause a number of serious economic and social problems.
First of all, in society there is a redistribution of income. After all, if a person gets fixed amount, and at this time there is a rise in prices, then his real income Reduced proportion to the indicated growth. The winning entrepreneurs will win, who earn the sale of goods with the most intensely growing prices.
Then, there is a violation of the balance of payments in the country. If the economy suffers from intensive inflation, the competitiveness of export goods decreases. At the same time prices for imported goods Automatically become lower than on domestic.
Thus, it becomes obvious that the positive effect of money emission can be expected only in conditions of stable production growth.
Money issue, the influence of monetary emissions for inflation
Emission - Issue - Emission - Release of Cash and valuable papers.
Money issue is governed by legislation and is carried out by the state, which distributes this function between the Central Bank and the Treasury. The Central Bank issues credit money - banking tickets (banknotes). The Treasury produces treasury tickets and exchangeless coins.
The issue in circulation of monetary signs in all forms leads to an increase in the money supply in circulation. Main forms of emissions:
1) Emissions credit money - banknotes;
2) depository - check emission;
3) Emissions of securities.
According to the Constitution of the Russian Federation, monetary emissions, i.e. The issue of money in appeal, in the Russian Federation is carried out exclusively by the Central Bank Russian Federation (clause 1, Article 75). Monetary unit In the Russian Federation is the ruble. The introduction and emissions of other money in the Russian Federation is not allowed. The Constitution of the Russian Federation, imposing the function of the issue of money in circulation to the bank of Russia, does not limit the powers of the Bank of Russia any form of emission. The Bank of Russia carries out emissions of money in cash and non-cash forms.
The Bank of Russia is carried out in the procedure established by the legislation of the Russian Federation, the procedure for circulation and withdrawal from the circulation of monetary signs in the territory of the Russian Federation. Non-cash emission of money is carried out in the process of deposit and loan operations. Bank of Russia regulates cash and without cash emissions means monetary policy. Use of money emission directly to finance deficit state budget RF is prohibited.
In order to limit the possibilities of commercial banks on the implementation of deposit emissions in the Constitution of the Russian Federation, the exclusive right to carry out monetary emissions in all of its forms is provided to the Bank of Russia. However, in the federal law, the monopoly function of the Bank of Russia for the implementation of monetary emissions is limited only by the issuance of cash. Similarly limited and not provided for by the current legislation, the function of the Bank of Russia on the organization of their non-cash circulation (Article 29 Federal Law) Non-cash, like cash, monetary appeal is subject to regulation in federal legislation. But this area cash circulation Not regulated by bank or other legislation. The procedure for the emission of non-cash money and the organization of their appeal to any authority of the Russian Federation or the Bank of Russia is not legally defined.
Abroad, the emission of money is conducted by the central (emission) banks and treasury (the first produced credit money - banknotes, second-scale tickets and exchange coins). Deposit and check emission that serves as the basis of non-cash payments is made by the commercial and central bank. Emissage of securities (shares and bonds) are carried out joint-stock companies, as well as the state.
The central (emission) bank in most countries belongs to the state. But even if the state does not formally own its capital (USA, Italy, Switzerland) or owns partially (Belgium - 50%, Japan is 55%), the Central Bank performs the functions of the state body. The Central Bank has a monopoly right to issue (emissions) of banknotes - the main component of the cash mass. He stores official gold and foreign exchange reserves, conducts state policy, regulating the monetary scope and currency relations. The Central Bank participates in public debt management and _ carries out cash-settlement service State budget.
The main passive operation of the central bank and one of the forms of emission is the emission of banknotes, receiving deposits of commercial banks and treasury, education operations own capital.
1. Fiduciary emission - emission of banknotes, monetary signs, unsecured reserves precious metals (First of all, gold) of the emission bank. Historically, the emission of banknotes was allowed only in the presence of a gold reserve, however, gradually refused the rules. Nowado, the fiduciary emission is dominant.
The main source of resources of the Central Bank in most countries is the emission of banknotes. At the present stage, the issue of banknotes is not secured by gold. Gold Provision of Banknotes is canceled, although in some countries it continues to act.
Credits of the Central Bank can be credited to the accounts of commercial banks and treasury, open in the Central Bank. In this case, it is not a banknote, but the deposit emission of the Central Bank.
The source of resources of central banks serve as deposits of treasury and commercial banks. Commercial banks can place part of their cash reserves, including part of their cash reserves for interest-free accounts in central banks.
mandatory. In a number of countries mandatory reserves Calculated for special accounts, as a rule, interest-free. This procedure is valid, in particular, in Russia. Central banks can open commercial banks and urgent accounts with a fixed interest rate. Usually, the share of equal capital of the bank accounts for no more than 4% of the liability.
2. Another form of emission is a deposit and check emission. Produced by commercial banks and serves as the basis of non-cash payments. By volume, the deposit and check emission significantly exceeds the emission of funds.
3. Also one of the forms of emission is the issue of securities.
The emission procedure of emission securities, unless otherwise provided by the legislation of the Russian Federation, includes the following steps:
The issuance of the decision on the issue of issuing issuing securities;
Registration of the issue of emission securities;
For the documentary form of release - the manufacture of certificates of securities;
Placement of emission securities;
Registration of the report on the results of issuing emission papers.
Emissions of money can lead to inflation.
Inflation - crisis monetary systemarising in the middle of the XVIII century due to the huge release of paper money. The term "inflation" literally means "bloating", for a long time connected with the depreciation of money and the growth of commodity prices. However, the practice of foreign countries shows that inflation can occur at a relatively stable money supply.
Modern inflation is associated not only with the fall in the buying capacity of money as a result of price increases, but also with a common adverse state. economic Development countries. It is due to the contradictions of the production process generated by various factors in the field of both production and implementation and monetary circulation, loan and finance.
The following factors affect inflation:
Emissions of paper money;
The growth of money supply exceeds production processes;
Cost of costs and prices for goods;
Inflation expectation.
It is necessary to distinguish between the internal and external causes of inflation. External - reduction of income from foreign trade In connection with the fall in fuel prices. Internal consistent in the lag of consumer industries with a higher development of the heavy industry.
There are two types of inflation.
1. Inflation demand. Traditionally, inflation occurs in excessive demand. The demand for goods is larger than the proposals of the goods, due to the fact that the production sector is not able to meet the needs of the population. This excess demand leads to price increases. A lot of money with a small number of goods.
2. Inflation costs. This phenomenon is expressed in price increases due to the increase in production costs. Depending on the growth rates in the market, inflation distinguish:
Cropling, at the annual rate of price increase of 3-4%. Such inflation is typical for developed countrieswho consider it as a stimulating factor;
Galoping, with an average annual rate of price increase of 10-50% (sometimes up to 100%), which prevails in developing countries;
Hyperinflation, with annual prices of price increases, over 100%, characteristic of countries in certain periods, when they are experiencing a rooted breaking of their economic structure.
Under the influence of inflation, the economic situation in the country worsens, because:
The volume of production is reduced, since fluctuations and rise in prices make insecure prospects for the development of production;
There is overflow of capital from production to trade and intermediary operationswhere faster the turnover of capital and more profit, and it is also easier to avoid taxation;
Speculation is expanding as a result of a sharp and uneven price change;
Credit operations are limited, since no one believes in debt;
Defines financial resources of the state.
The main form of stabilization of the monetary system is the anti-inflation policy of the state with monetary reform and state regulation inflationary process. Monetary reform is a complete or partial transformation of the monetary system, conducted by the state in order to streamline and strengthen the monetary circulation. It is carried out by various methods (nullification, restoration, devaluation, denomination) depending on economic Regulations Countries, money impairment degrees, state policies by adopting a one-time legislation.
Nullification is carried out by annuling the old depreciating money currency and the introduction of a new one.
Restoration involves restoring the former gold currency content, raising the golden course.
Devaluation - Course Reduction national currency in relation to foreign.
Revaluation is an increase in the national currency rate against foreign.
The denomination is to reduce the rating of the money supply in circulation by exchanging monetary signs to new in the proportions of their impairment, i.e. Method of overclocking zeros.
The method of shock therapy is the type of confiscational monetary reform. It includes the exchange of paper money on the deflationary course, full or partial freezing bank deposits Population and entrepreneurs, widespread use of free pricing.
State regulation of the inflationary process means a complex of state measures aimed at limiting prices and stabilize the monetary system by deflation policy and income policies.
Deflation policy includes methods for limiting money demand by reducing public spendingEnhance interest rate For credit, strengthening the tax press, the limitation of the money supply. But it does not contribute to economic growth. Revenue policy implies control and full freezing prices and wages Either establishing the rigid limits of their growth.
One of the most effective ways Stimulating the economy of any state is to increase income by emissions. Such a procedure contributes to the improvement of the state's economy and allows replacing worn banknotes to new ones. So, the emission of money - what is it? Under this concept implies the process of issuing a free appeal of additional new money. Printing bills and chasing coins is carried out by the state and is regulated at the legislative level.
In Russia, new money is produced almost regularly in order to replace worn and damaged money. On average, their life is about 5 years. Such a replacement does not entail an increase in the total amount of cash in turnover and is called target emissions. In general, the emission is customary to speak in those situations when the printing of new bills leads to an increase in the overall money supply. The main task of this procedure is to develop working capital in order to increase production.
The issuance of securities contributes to the expansion of its own production and modernization of companies, or the solution of other problems that required additional funds. It is necessary to take into account that as a result of the issue of new shares entering the market, and not distributed among the management of the company, the number of initial shares owners is reduced.
In Russia, the procedure for printing new money is carried out according to the following principles:
- Monopoly. Only the state in the face of NB is eliminated by the chasing and printing of new bills, their withdrawal from turnover and the redistribution of cash flows.
- Obligation. The only official payment Toolused throughout the state is the ruble.
- Extension - every subject with documents certifying his personality with him has the right to exchange any amount in rubles for the currency of another country.
- No binding - the ruble is not tied to gold or any other precious metals.
In addition to the National Bank, the Treasury also has the right to print new banks. The difference between the powers of these two organizations is that the Central Bank releases credit material resources - Banking tickets, and the Treasury - Treasury Tickets.
Types of emissions
The emission is divided into 2 main types:
- Cash - characterized by the flow of paper money of different nominal in order to stimulate the state economy. New money is starting to print when salary increases, rates for personal consumption goods are growing, turnover is growing, etc. It is necessary to optimize cash emissions, it is necessary not only to correctly determine the predicted amount, but also to correctly distribute it throughout the state. The emissions of the species under consideration is carried out decentralized. Since the need for banking institutions in cash depends on how it is required to legal and individuals, it is constantly changing. Cash passes from non-cashless, located on deposits and being a total component cash floworganized by banks during activities bank multiplier.
- Non-cash - the amount of money increases when banking institutions conduct active operations. Own amount of cashless emission exceeds cash emissions. The non-cash is issued by banks that provide customers who have funds on their accounts. In turn, there is a write-off of non-cash for the amount of issuing from personal client accounts.
Cashless emission is primary because it is performed first. And only after her released money enroll in commercial banking structures as appropriation from the budget or borrowed revenues from the National Bank. These funds are used to issue loans to the population and entrepreneurs.
In addition to the listed types of emissions, its types such as credit and budgetary are also distinguished. The first is carried out upon admission to the turnover of money that appeared as a result of credit operations. Budgetary cash emissions in the Russian Federation is carried out when special treasury tickets are issued on the turnover, as well as government securities. This procedure is carried out in order to replenish the deficit in the state budget.
Some coins of the Russian Federation
Features and procedure for conducting emissions in the Russian Federation
As noted above, according to the law, the monopoly right to release a new cash has the Central Bank. The decision on the release, as well as the withdrawal of a certain amount of money from turnover is made by the Board of Directors. The development of new banknotes, their design, durability and methods of protection against fakes is engaged in the Central Bank.
Coins are minted in Moscow and St. Petersburg coarse courtyards. For printing paper cash, specially intended for this typography, equipped with all necessary equipment, which can provide a high level of protection.
Mechanism of action
The process of printing and chasing money is rigidly controlling the NB. It is for its competence that questions include such as determination of the required amount of emission and a uniform distribution of cash between state subjects.
To establish the value of the possible issuance of the Central Bank examines the cash information passing through banking cashiers and reveals regions requiring additional infusion of funds. Since the process of delivery of cash from the central regions into distant causes certain difficulties, the regions equip the RCC to store the reserve of monetary signs. From the moment of entering them into circulation, such money from non-cash is turned into cash.
The RCC is also equipped with negotiable cash desks intended for credit institutions carrying out bank operations, all cash.
When cash receipts available on bank accountsexceed by the number of cash limit, they are made of turnover and transferred to the Spare Fund. In case of need, there is a reverse withdrawal of such money from the Spare Fund. Wherein this operation Be sure to coordinate with the NB.
The consequences of excessive emission
For banks, the easiest and fastest source of resources is an additional large-scale issue of new funds. However, as a result, there is no precisely accurate calculated, excessive emission of GDP increases, as not stimulated business activity.
On the contrary, such a release of money in appeal becomes the cause of the opposite result, when real incomes begin to decrease due to sharply increased inflation.
In the process of finding additional cash resources for credit institutions, it should be borne in mind that one only to ensure the increase in assets of banking institutions is not enough. It is necessary to create such conditions that will allow directing these assets only into specific sectors, despite the presence of large credit risks and attractive speculative transactions.
To solve this problem, it is advisable at the legislative level to limit the conclusion abroad by purchasing currency. It is also necessary to limit the ability of banks that use resources to conduct financial speculative transactions in stock markets.
Thus, it can be concluded that the main factors that will optimize monetary emission The following:
- The organization of such a monetary political system, which allows to ensure the stable activity of the financial sector in a non-permanent currency course ruble.
- Providing such conditions that will allow you to function steadily to function.
- Providing conditions to create an optimal money supply structure.
The listed factors allow us to perform the main criterion of optimal emission, in which the needs of the economy will correspond to the money supply.
For the questionnaire, you must enable JavaScript in the browser settings
The emission of money is the issue of money in turnover, which leads to an increase in the money supply.
Emissions may be a budget (treasury) and credit (banking). With the budget emission, the financial authority authorized by the state (usually the Treasury) issues treasury tickets and government securities in order to finance government spending not covered by revenues from other sources. Since the treasury issue is due not to the needs of real economic turnover, but by scale budget deficit, then the money appearing in the circulation lead to the depreciation of the entire mass of money.
With credit (banking emission), credit money comes from credit relations.
Money emission can be carried out in two forms:
- -Asnal emission is carried out by the bank system;
- - Neline emission is carried out by the Central Bank.
The emission of non-cash money is primary, its goal is to meet the additional need of enterprises in coverage. It is carried out through enrollment of additionally issued money for correspondent accounts in banks in the form of credits of the Central Bank. Since before the new money appears in the turn, they should reflect in the form of records in bank accounts. Thus, new money come in turnover from banks as a result of the implementation of credit operations. The emission of cashless money is carried out through the bank multiplier mechanism. A bank multiplier is the process of increasing money on deposit accounts of banks during the movement of funds from one bank to another. The process of banking animation is possible only in the conditions of the existence of a two-level banking systemwhich assumes the presence of a central bank and other banks in the country.
The mechanism of the banking multiplier is the issuance of money in the process of lending to the economic entities.
The Central Bank issues loans to banks, and those in turn are carried out using these funds their own credit operations - provide credit funds to their customers - economic Subjects. Suppose Central Bank provided a bank loan 1 in the amount of 1000 rubles. Second level bank performing its economic function, Provides a loan to an economic agent in the amount of 1000 rubles received from the Central Bank. Customer of Bank 1 in its activities transmits funds to its partner (for example as a result of purchase and sale). The economic entity that has received cash places them on account in its bank (Bank 2) in the amount of 1000 rubles. The Bank from this account deducts a certain amount into the reserve fund of the Central Bank in accordance with the norm of compulsory reservation established by the Central Bank. Thus, the Bank has a smaller amount of free funds. But the customer's account remains the same amount (1000 rubles). Suppose that the reservation rate is 20%, then Bank 2 will list the Central Bank 200 rubles, and the free 800 rubles will remain., Which it can use for credit activities. These funds Bank 2 will provide the client who uses them in the calculations and transmit to another client to another bank. Accordingly, in the bank 3 on the account there will be 800 rubles, 160 of which it will be listed in the Central Bank. For credit activities in the bank 3 will remain 640 rubles. Thus, the process will repeat. The process described continues until after deducting the next bank funds to the reserve fund will no longer have money for issuing a subsequent loan.
Turn to the results of this mechanism. Initially, the amount of funds allocated by the Central Bank was 1000 rubles. After completion of the mechanism, the amount of funds will be equal to the amount of funds on the accounts of three customers. Even from example, it can be seen that the total amount of money has increased. So on the account in the bank 1 1000 rubles. + in a bank 2,800 rubles. + Bank 3 640 rubles. Even with the incomplete work of the banking multiplier in the considered example, the amount of funds in the accounts of three clients is 2440 rubles, which is 1 440 rubles. exceeds the initial amount. Also, the emission of non-cash money occurs if the client brings cash to the deposit account.
Cash issuance is an output in which the mass of cash in circulation increases. As a rule, the Central Bank of the country is endowed with the monopoly law of the issue in the appeal of banknotes and coins. In the Republic of Belarus, the National Bank is endowed with this right. The issue of money is carried out by the National Bank by short-term refinancing (up to one year) of banks in order to maintain the liquidity of the banking system of the Republic of Belarus and the sustainability of money circulation, the purchase of National Bank of the State Securities-free and exercise of operations in the internal and external money markets aimed at increasing state-owned gold reserves. Money emission for long-term (over one year) refinancing banks is prohibited. The volumes of aggregate emissions of non-cash and cash are determined and regulated exclusively by the NBRS when approving and implementing the main directions of the RB monetary policy. NB emits the Belarusian ruble.
There are many ways to stimulate the country's economy. It is important to consider many factors and not mistaken. One of the most effective is to increase the income from money emissions. With this procedure, it will be possible not only to improve the economic situation in the whole country, but also to release new banknotes, replacing spoiled.
What is money emission?
Emissary of money is called release in the free appeal of new bills. Such emission of money is carried out by the state and it is governed by law. This feature state bodies must be distributed between the Central Bank and the Treasury. The first is engaged in the release of credit funds - banking tickets (banknotes). The second produces special treasury tickets, as well as barrier coins. Among the main forms of emissions are distinguished:
- Emissy credit funds - Banknotes.
- Deposit and check.
- Valuable papers.
Why do I need emission of money?
This procedure, like everyone else, has its own tasks. Thus, the target emission of money is carried out in order to replace spoiled banknotes and to stimulate the country's economy. As a result of the issuance of securities, the company can expand own production, upgrade it, or solve other problems, since additional material means appear. However, it is important to understand that the release of new shares that come to the market, and not distributed among the leaders of the enterprise, reduces part of the initial shares holders.
Money Emission - Pros and Cons
Such a process as a cash issuance has not only advantages, but also their own negative consequences. It is important to remember what the money emission is dangerous. So, as a result of this process, it may decrease purchasing power money. That is, we can say that the emission of money leads to inflation. Among the advantages of cash emissions:
- Modernization company.
- Stimulating the country's economy.
- Possible expansion of the production of an enterprise or company.
Who conducts emission of money?
Important financial procedure Emission of money is carried out only by state central banks. The release in turnover of new banknotes and coins occurs in order to replace unsuitable bills or to improve the economic situation. The base of non-cash payments is a deposit-check emission of securities, which can be made by commercial banks. In many cases, non-cash emissions implies the issuance of a loan to organizations and individuals.
Money emission and its types
There are such types of money emissions:
- Cash - It is associated with an increase in turnover in prices, as money can serve procedures in special markets.
- Non-cash money - It is carried out by crediting the issued money to the accounts of the correspondents of commercial banks in the form of loans.
- Budget emission - It is associated with the release of special treasury tickets and government securities on the turnover with a specific purpose of financing the deficit of the state budget.
- Credit emission - communicates with the receipt of credit funds in circulation arising during credit procedures.
Emissions of non-cash money
This economic process It is an increase in funds in bank accounts after financial institutions of active operations. This procedure for cash is primary. The emission of non-cash money is carried out by banks that provide cash to customers in cases where they have money in bank accounts. At the same time, non-cash cash with customer accounts are written off at the amount of issuance.
One country of cash and non-cash funds can determine the unity and relationship of emission processes. IN modern world Two types of emissions are credit. In other words, additional means of payment, regardless of their form, can be included on the basis of specific credit operations.
Cash emissions
Under this procedure, the issue of money is understood in turnover, at which there should be a mass of money in circulation. Cash issuance is carried out by state central banks. It matters not only the installation of the predicted emission size, and the distribution of it throughout the country. The cash emission procedure is made decentralized.
For the reason that the need for commercial financial institutions in cash depends on the need of not only legal, and individualsShe is changing. Cash is transferred from non-cash, which are on deposit accounts and at the same time actively participate in cash flow created by commercial banks as a result of the functioning of a bank multiplier.
