Money turnover: the speed of money circulation. The velocity of circulation of the money supply The velocity of circulation of money is determined

Money supply and monetary base. One of the main quantitative indicators money circulation is an money supply- a set of purchasing, payment and accumulated funds serving various connections and belonging to individuals and legal entities and the state.

With the development of forms of commodity exchange and payment and settlement relations, the composition and structure money supply have undergone significant changes. At the beginning of the XX century. with gold circulation, the structure in developed countries was as follows: gold coins accounted for 40%, banknotes and other credit money - 50% and balances in accounts with credit institutions - 10% on the eve of the First World War - 15.22 and 63%, respectively;

The departure of gold money, first from internal and then from external circulation, had a serious impact on the structure of the money supply. Real money (gold) completely disappeared from circulation, the dominant position was taken by irredeemable credit money (primarily banknotes), acting in cash and cashless forms.

In economically developed countries, and later in our country in financial statistics, to analyze changes in the money supply at a certain date and for a certain period, they began to use monetary aggregates:

To determine the money supply, countries use a different number of aggregates (USA - four, France - two). In Russia, three aggregates are used to calculate the total money supply - m about , M 1 , M 2 .

Currently, the indicator is used to characterize the money supply monetary base. It includes the unit m about a plus cash at the cash desks of commercial banks, the required reserves of banks with the Bank of Russia and funds on correspondent accounts of commercial banks with the Bank of Russia, thus the monetary base is essentially equal to the aggregate M 2 .

The money supply depends on two factors; 1) the amount of money and 2) the rate of their turnover.

The law of money circulation. The amount of money required for the performance of their functions is established economic law monetary circulation, discovered by K. Marx.

The law of money circulation determines: the amount of money for circulation is directly proportional to the number of goods and services sold on the market (direct connection), as well as the level of prices of goods and tariffs (direct connection) and is inversely proportional to the velocity of money circulation (reverse connection).

All factors are determined by the conditions of production. The more developed social division labor, the greater the volume of goods and services sold in the market; the higher the level of labor productivity, the lower the cost of goods and services, as well as prices.

With the emergence and development of credit relations, the function of money as a means of payment arises, goods are sold on credit under debentures... A loan leads to a reduction in the total amount of money in circulation, since a certain part of the debt obligations are mutually repaid.

The law determining the amount of money in circulation with a medium of two functions - a medium of circulation and a means of payment, is somewhat modified and takes the following form:

During the functioning of real money (gold), their amount was maintained at the required level spontaneously, since the function of the treasure acted as a regulator. The ratio between the mass of the commodity and the mass of money was kept relatively accurate. This ensured the stability of monetary circulation.

In the absence of a gold standard, the law of paper money circulation began to operate, in accordance with which the number of signs of value was equal to the estimated amount of gold money required for circulation. In this situation, the stability of money was shaken, and depreciation became possible.

Nowadays, in the conditions of demonetization of gold, i.e. they lose their monetary functions, the law of monetary circulation has undergone a modification. Now it is no longer possible to estimate the amount of money from the point of view of even their approximate calculation through gold. It has gone out of circulation and does not function not only as a medium of circulation and means of payment, but also as a measure of value.

A measure of the value of goods and services became money capital, which measures the value not in the market during exchange (as it was before), but in the process of production - goods for goods. Any commodity, exchanging for irredeemable credit money, expresses its value through equating it to a multitude of commodities. In this regard, a commodity transaction, valued in a certain amount of non-exchangeable credit money, should provide the entrepreneur with such an amount of use value that will allow him, after the use value is realized, to start a new one. the production cycle... Because of this, money acquires the ability universal equivalent... Although there is no spontaneous regulator of the total amount of money under the dominance of signs of value, this role of regulating money circulation is transferred to the state.

Unchanging credit money, acquiring traits paper money, are introduced by the state authority, which gives them a compulsory course. Their emission without taking into account the value of goods produced and services rendered in the country will inevitably cause their surplus and ultimately lead to depreciation.

In this regard, the question of the need to determine the required amount of money for circulation is of great importance. According to classical theory A. Marshall and I. Fisher, the amount of money is determined by the dependence of the price level on the money supply:

From the formula, the amount of money required for the circulation of a certain mass of goods is equal to:

and the price of the goods

The price level changes in proportion to the change in the mass of money in circulation.

In Russia main reason increase in money supply - huge deficit federal budget, which for 2000 is stipulated in the amount of 57.87 billion rubles, or 1.08% of GDP. During the first half of the 90s, it was paid off additional issue money in circulation, at the same time, commodity turnover actually decreased due to a decrease in production.

The growth of the money supply is facilitated money multiplier(from Latin multiplicator - multiplying), arising with the development credit system(in conditions of two or more levels). Its essence is that the money supply in circulation increases as a result of the expansion of banks' lending operations with their clients by receiving funds from the centralized reserve of the Bank of Russia, formed from mandatory contributions banks. Theoretical multiplication factor is equal to the reverse rate of required reserves established by the Bank of Russia for the country's banks. It is calculated for a certain period of time, usually a year, and characterizes how much the money supply in circulation will increase during this period. The Bank of Russia, managing the money multiplier, carries out monetary regulation in the country.

Money turnover rate. This is the second factor in the change in the money supply. To calculate the velocity of circulation of money, i.e. their heavy traffic when they perform the functions of circulation and payment, are used two indicator.

1. The speed of movement of money in the circulation of the value of a social product or the circulation of income:

This indicator testifies to the connection between monetary circulation and the processes of economic development.

2. The turnover of money in the payment turnover:

This indicator indicates the speed of cashless payments. Other indicators of the rate of turnover of money are also applied. The speed of money circulation is influenced by:

• 1) general economic factors - cyclical development of production; the rate of its growth; price movement.
• 2) monetary (monetary) factors - the structure of payment turnover (the ratio of cash and non-cash money); development of credit operations and mutual settlements; level interest rates for a loan in the money market; introduction of computers for operations in credit institutions; using electronic money in calculations

The rate changes depending on the frequency of income payments, the uniformity of spending by the population of their funds, the level of savings and accumulation.

The velocity of circulation of money is represented by the average frequency of using a monetary unit to purchase new goods and services in a specific period of time. In many ways, this indicator depends on economic activity with the current money supply. When determining a specific time interval, the velocity of money circulation is represented by a number.

It is quite easy to imagine the calculation of the indicated indicator on specific example... For example, imagine a private economy with a money supply of 500 rubles and with the presence of two economic entities: a farmer and a mechanic, who carry out several transactions each year. So, a farmer pays a mechanic to repair a tractor. The mechanic buys grain for 400 rubles, and also pays the farmer 100 rubles for inspecting and feeding his pets. Thus, the total value of all transactions is 1000 rubles, and each ruble was used twice a year. That is why the rate of circulation of money is two per year.

The turnover of money is represented by a manifestation in their movement. It also covers the exchange and distribution process. The volume and structure of turnover is influenced by production and consumption.

So, a lengthy production process that requires an increase production stocks, significantly increases the turnover of money associated with such an acquisition. And the release of products with a high labor intensity increases precisely in wages and, as a consequence, an increase in the monetary incomes of the population, which are further directed to consumption.

One of component parts the considered indicator is the payment turnover at which money can be used as a means of payment to pay off arising obligations. This turnover can be carried out both in cash and non-cash forms.

Summarizing what has been said, we conclude that money should be in constant motion between the following main subjects of the economy: government bodies, legal and individuals... It is their movement in various forms (cash and non-cash) that forms the speed of money circulation.

State bodies are understood as control, fiscal bodies, and the National Bank. As legal entities can participate in money circulation commercial banks.

The issued mass of money in circulation forms emission, which can be primary, carried out by the central bank, and secondary (issue of deposit money of commercial banks).

Another way to replenish the money supply in circulation is the budget debt tracking system, which is based only on the placement of government debt in the market. valuable papers.

By selling such securities, the state borrows funds from entities financial system and draws them up as public debt countries. By acquiring government obligations, the Central Bank directly increases the circulation of the money supply and forms the basis for the subsequent issue of deposit banks.

As mentioned, the issuers of the money supply can also be commercial banks that form deposits, providing loans to citizens or business entities. When a loan is granted, it grows, when the loan is repaid, it decreases. The occurrence of such an effect can be successful when buying commercial bank on the stock market government securities (only in this case, government obligations can turn into But additional emission can take place when the bank acquires foreign currency.

The intensive circulation of money in the country is due to the abundance of purchase and sale transactions. Velocity of money circulation- an indicator of the average annual amount of money turnover due to the use of funds for the purchase of services, finished goods.

Velocity of money circulation: calculation

Velocity of money circulation(V) is calculated as the ratio of the annual GDP (Y) to the average annual money supply (M): V = Y / M.

In the short term, the speed indicator is constant, in the long term, it is a variable value that can be adjusted. The speed of money circulation is influenced by:

• banking infrastructure of the country;
• technical equipment of institutions participating in monetary schemes;
• economic activity.

The more perfect the satellite, computer communications, technical equipment of banking structures, the more intensively money turns around and the less money is required for the stable functioning of the economy.

The money supply required for payment transactions depends on the demand for money, the supply of banks.

Money turnover: change in the velocity of money circulation

Change in the velocity of circulation of money due to an increase or decrease in production volumes - with an increase in production, the speed increases, with a decrease, it slows down. Indirectly, the circulation of money depends on the phases economic cycle... Thus, during a crisis, the turnover of the money supply decreases.

Provided that prices are stable in the country, the following can be traced:

• a slowdown in cash turnover is a sign of a decrease in GNP;
• acceleration of money turnover - a criterion for the rise of GNP.

When inflation accelerates, money turnover increases equally.

A significant change in the indicator of the intensification of the movement of money supply can be caused by a qualitative transformation of the money circulation system.

Velocity of circulation of money: factors of movement

To calculate the turnover of money in the economy, an indicator is used that determines the speed of money circulation. Factors influencing the speed ratio:

1. General economic. Conditions - cyclical development of the economy, price movements.
2. Monetary:

• changes in the structure of the payment circuit;
• development of credit transactions;
• the intensity of mutual settlements;
• the level of interest rates;
• the rate of development of production volumes;
• economic situation in the Russian Federation.

The development of payment and settlement systems accelerates the circulation of money. The indicator of the intensification of the money supply reflects the inflation rate.

With an economic recovery, the turnover of money will decline.

53. Indicators of the velocity of circulation of money supply

The money supply is an important quantitative indicator of the movement of money. Money can be used as a medium of circulation, as a measure of value and as a means of accumulation.

When determining the money supply, they proceed from absolute indicators - monetary aggregates, which are understood as a specific classification of means of payment according to the level of their liquidity:

1) monetary aggregate M 0- cash in circulation;

2) funds on settlement, current and special accounts of enterprises, population and local budgets;

3) deposits of the population and enterprises in commercial banks;

4) demand deposits of the population in savings banks;

5) funds of the State Insurance (monetary aggregate: M 1 = (M 0 + item 2 + item 3 + item 4 + item 5);

6) fixed-term deposits of the population in savings banks(monetary aggregate: M 2 = (M 1 + item 6);

7) certificates and government bonds (monetary aggregate: M 3 ​​= (M 2 + item 7).

The amount of money supply is determined by the state - the issuer of money, its legislative power.

Monetary base includes the monetary aggregate M 0, the required reserves of commercial banks, cash in the cash desks of banks, funds on correspondent accounts with the Central Bank of the Russian Federation.

Money multiplier- This is a coefficient characterizing the increase in the money supply in circulation as a result of the growth of bank reserves.

It is calculated using the formula:

M 2 / H= (C+ D) / (C+ R) =(C / D + 1) / (C / D + R / D),

Where M 2 - money supply in circulation;

H- monetary base;

C- cash;

D- deposits;

R- required reserves of commercial banks.

The limiting (maximum possible) value of the money multiplier is inversely related to the rate of required reserves set The central bank for commercial banks.

Velocity of money circulation- intensive movement of money when they perform the functions of circulation and payment.

The velocity of money circulation is measured by two indicators.

1. The number of money turnovers in circulation for the period under consideration is calculated by the formula:

V= Gdp/ M 2,

where GDP is the gross domestic product in current prices(GDP =? Р 1 q 1);

M 2 - the total amount of money supply in the studied period, defined as the average balances of money for the period. This indicator characterizes the rate of turnover of the money supply, that is, how many times a year the ruble was used to obtain goods and services.

2. Duration of one turnover of money supply calculated by the formula:

t= M 2: Gdp/ D,

Where D- number calendar days in the period.

The above indicators are interconnected:

V = D / t or t = D / V.