The mechanism of money issue as a basic element of the monetary system
This article analyses the features of functioning of the money issue as a basic element of the monetary system. The features of modern emission mechanism of credit money were determined as well as its role in promoting socio-economic development. It is demonstrated that the nature of modern credit money is the basis of the effective functioning of the emission mechanism, and its important prerequisite is to respect the principles of credit and quantitative and qualitative credit limits. The author determined exogenous and endogenous character of credit money issue; its advantages and disadvantages were also analyzed. The sources of exogenous money issue are loans of the banking system. Endogenous money issue focuses on clean flow of foreign exchange earnings from abroad. The main trends and ways of the optimization of emission mechanism such as reducing inflation, maintaining the financial stability of the banking system, improving confidence in banks and bank deposits, reducing the amount of cash in money circulation were substantiated.
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Keywords: credit money issue, credit money, the monetary system. |
MACROECONOMICS
Barida Nadiya
PhD, Associate Professor Department of Banking SHEI «Kyiv National Economic University named after Vadym Hetman»
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