Credit money is issued. Money emission and money supply

(from Latin emissio - release) - release of money and securities into circulation. Right to emissions central (national) and other state banks have money.

In the Russian Federation, according to the Constitution (since 75), monetary emission is the exclusive right of the Bank of Russia. Cash is issued on a credit basis in accordance with the needs of economic turnover. The size of the issue of money or its withdrawal from circulation is established by the cash plan of the Bank of Russia. Monetary economics consists of issuing and withdrawing banknotes from circulation (bank notes and metal coins), organizing their production, and regulating the money supply in circulation.

The right to E. securities is based on general civil legal capacity and belongs to the state and legal entities. Accordingly, state (municipal) and private securities securities are distinguished. State (municipal) securities market serves as a way to mobilize financial resources to cover the budget deficit and further socio-economic development of the country. The state, represented by the government and the authorized executive body, issues securities in the form of government loans, government treasury obligations, government short-term obligations (see Government loan). The right to issue bonds of internal state (municipal) loans belongs to the relevant bodies of the constituent entities of the Russian Federation and local self-government bodies. The procedure for the issue, circulation and redemption of state (municipal) securities is regulated by the Federal Law “On the Peculiarities of the Issue and Circulation of State and Municipal Securities” 1998.

Private investment includes the issuance of shares and bonds (equity securities) by legal entities (for example, joint-stock companies) and serves as one of the ways to mobilize and increase their capital.

The procedure for emission of securities is established by the Federal Law “On the Securities Market” of 1996 and, as a rule, includes the following stages: the issuer’s decision to issue equity securities, registration of their issue, production of their certificates (for the documentary form of issue) and their placement, as well as registration of a report on the results of the release. When registering a securities prospectus, the E. procedure is supplemented by the following stages: preparation of the said prospectus, its registration, disclosure of all information contained therein and all information contained in the report on the results of the issue.

The rules for securities trading are contained in the securities trading standards approved by the Federal Commission for the Securities Market.

The word "emission" is of Latin origin - emissio translated as release. In economics, “emission” refers to the process of releasing various financial instruments into circulation. Most often we are talking about the issue of banknotes, and then they say that it’s time to “turn on the printing press.” There is also the issue of bank cards and securities.

What is money emission?

This is the introduction of new cash and non-cash money into circulation, increasing the money supply.

Emission cash Only the Central Bank of Russia has the right to conduct money in the Russian Federation. New paper bank notes and coins of various denominations are released into circulation to replace already worn-out banknotes or for economic stimulation.

Base non-cash settlements is the deposit-check issue of securities. It can be implemented not only by the Bank of Russia, but also by commercial banks. In most cases, non-cash issue involves issuing loans to both organizations and individuals. At the same time, the bank multiplier (a special rule) allows commercial banks to lend to clients in an amount significantly exceeding the own funds of credit institutions.

What is an issue of securities?

This type of issue means the issue and placement on the market of certain types of securities, as well as the distribution of shares or bonds among investors, which gives their owners the right to receive income from the invested funds.

The issue of securities allows enterprises to receive additional financial resources that can be used at their discretion (expansion, modernization).

Alexander Kaptsov

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For the development of commodity production and the growth of commodity exchange, it is necessary that the amount of money supply correspond to this process. When this balance is disrupted, the state begins to issue new money. How many and what kind of banknotes are needed is decided by experts, since excess money supply can also lead to negative phenomena in the economy.

Money emission - what is it? Goals and essence of the procedure

The issue of new banknotes in the state is carried out almost constantly, because worn and damaged banknotes have to be replaced (their service life is up to 5 years). As a result of such a replacement, the total amount of money in circulation does not increase. If, with the release of new coins and banknotes, the money supply begins to grow, then we can talk about emission. Its main goal is the formation of working capital to expand production.

The issue of money in Russia is based on several principles:

• Monopoly . Only the State, represented by the Central Bank, has the right to issue new banknotes, withdraw funds from circulation and redistribute cash flows.
• Obligations . The ruble on the territory of the Russian Federation is the only official means of payment for settlements.
• Exchangeability . The Russian ruble can be exchanged in any amounts upon presentation of identification documents by the subject.
• Lack of binding . The ratio of the ruble to gold and other precious metals is not established.

As a result of money emission, the increase in the monetary base is exchanged for part of the national income, due to which the influx of funds into commercial banks increases and enterprises are credited.

Main types of money issue and organization conditions

Experts distinguish 2 types of money issue:

1. Spot . This is when new banknotes and coins of different denominations come into circulation to stimulate the country's economy. The printing press can be started when wages increase, prices for consumer goods rise, trade turnover increases, and so on.
2. Cashless . It is characterized by an increase in the volume of funds in bank accounts when financial and credit structures carry out active operations. In terms of volume, this type of emission prevails over cash emission.

At first, non-cash emission is carried out, so it is primary. Only then are additionally issued funds transferred to the accounts of commercial banks in the form of budget allocations or loan proceeds from the Central Bank. These funds are used to issue loans to entrepreneurs and the population.

When issuing cash, additionally issued banknotes are transferred to banks, and then similar amounts are debited from their correspondent accounts by bank transfer.

During the circulation process, money of one type can be easily converted into another, since they are interconnected. For example, cash that clients deposit at the bank's cash desk is credited to their accounts and transferred to the non-cash category. If part of the amount is somehow withdrawn from the account, then the non-cash money again becomes cash.

Who issues money in Russia?

In accordance with the legislative framework, the Central Bank has a monopoly right to issue money in Russia. The Board of Directors makes responsible decisions on the issue of new money supply or the withdrawal of part of the funds from circulation. The Central Bank pays special attention to the development of new banknotes, their design, durability and ways to protect money from counterfeiting.

Coins are minted in the mints of Moscow and St. Petersburg. Paper money is printed in specialized printing houses, where banknotes are provided with an increased level of security.

The process of making money is strictly controlled by the Central Bank . It determines the required volume of emission and distributes cash evenly among the constituent entities of the Russian Federation.

How money is issued in the Russian Federation: procedure and mechanism of the procedure

To determine the size of the proposed issue, the Central Bank collects data on the passage of cash through the cash desks of commercial banks and identifies regions where there is a need for additional infusion of funds. Since it is very difficult to transport cash from the Center to remote areas, there are cash settlement centers (CCCs) in the regions, where banknotes are stored in reserve. In the generally accepted understanding, this is not money yet. They will have such a function only after they are put into circulation.

The RCC also has circulating cash desks, where commercial banks deposit all cash, and then it is distributed among them based on requests.

If the amount of cash receipts in bank accounts begins to exceed the established limit, then the money is withdrawn from circulation and transferred to the reserve fund. When the need for them arises again, the reverse process occurs with the permission of the Central Bank.

What will the excess emission of money lead to: possible problems in the country’s economy

An increase in cash in circulation would seem to stimulate consumer demand and enhance economic potential. But in fact, an excess money supply contributes to rising prices for goods and services without affecting the development of production. As a result of excessive money emission . And as a result, there is a redistribution of income. A person with a fixed salary has a decrease in purchasing power, while entrepreneurs with a hot commodity have unreasonable income. The country's balance of payments is disrupted.

Only financial institutions, exchanges and exporters benefit from inflationary processes. Ordinary citizens, as always, lose, losing not only from rising prices, but also from the abolition of wage indexation and so on. Prices are also rising for imported products, since the state cannot regulate the foreign exchange and food markets. Credits become unavailable.

The issue of cash is its release into circulation, which increases the amount of cash in circulation.

The monopoly on the issue of cash belongs to the state central bank. Previously with administrative -distribution system magnitude emissions was the object of directive planning on the part of the state and in no case could it be exceeded. The plan is the law. IN conditions of a market economy no such prescriptive planning exists, however The Central Bank predicts size of the proposed issue , using forecasts of cash turnover of commercial banks and our own analytical materials.

At the same time, it is important to establish not only the optimal predicted emission value, but also its distribution among individual regions of the country.

Cash issuance is carried out in a decentralized manner.

Since the need of commercial banks (it is this that determines the size of the issue) for cash depends on the need for it of legal entities and individuals served by these banks, and it is constantly changing. Therefore every time bring money from the Center to satisfy this need it would not only be inappropriate (due to many times increasing distribution costs), but also impossible . Since this need is very dynamic , and the country is ours territorially both fortunately and unfortunately great .

How does the issue of cash occur and who directly carries it out?

Cash issuance is carried out by the Central Bank of the Russian Federation and its cash settlement centers (RCCs).

They open in various regions of the country and provide settlement and cash services to commercial banks located in these regions.

To issue cash, RCCs open reserve funds And revolving cash registers.

IN reserve funds stored stock of banknotes , intended for their release into circulation in the event of an increase in the need for cash in the economy of a given region. These banknotes are not considered money in circulation, since they do not move, they are a reserve.

The cash desk of the RCC constantly receives cash from commercial banks, but cash is also constantly issued from it.

So way , the money in the working cash register is in constant motion; they are considered money in circulation.

If the amount of cash received by the cash register of the RCC exceeds the amount of money issued from it, then the money is withdrawn from circulation. At the same time, they are transferred from the working capital of the RCC to its reserve fund.

The reserve funds of the RCC are managed by the departments (city, regional, republican) of the Central Bank of Russia.

If, as a result of the action of the bank multiplier, a given commercial bank increases the amount of money in deposit accounts, then as a result:

a) the free reserve of a commercial bank increases;

b) customers' need for cash also increases.

RCCs are required to issue free cash to commercial banks within the limits of their free reserves . That's why, if the majority commercial banks served by RCC, the need will increase in cash, A receipt of money to their operating cash desks equivalent will not increase , That RCC forced will increase output cash in circulation .

For this he based on Central Bank management permission RF translates cash money from the reserve fund to the working cash register RCC .

For this RCC this will be an emission operation , although in the country as a whole the issue of cash may not occur.

When one RCC issues an issue, another RCC may at the same time additionally withdraw a similar amount of cash, so the total amount of money in circulation may not change.

Information about whether an issue occurred or did not occur on a given day is available only to the Board of the Central Bank, where the daily emission balance is compiled.

Money issued by the RCC into circulation will go to the operating cash desks of commercial banks, from there they go either to the cash desks of enterprises or directly to the population. In this case, money is debited from clients' accounts upon demand.

Hence, cash is being transformed from non-cash money , located in deposit accounts, and represent an integral part of the money supply created by commercial banks as a result of the bank multiplier mechanism.