Formula of K. Marx

There are two main formulas by which you can calculate the circulation of money or the amount of money supply in a certain territory.

Remark 1

The formula derived by K. Marx, in a simplified version, sounds like this: "The total amount of money = the sum of all prices / the number of revolutions (velocity of circulation) of money."

The full formula looks like this:

The total amount of money that the economy needs for the functioning of money circulation \u003d (C - T + P - VP) / C, where:

• C - the sum of all prices for goods and services;
• T - the number of goods and services sold;
• P - the total amount of all payments that must be paid on debt obligations;
• VP - payments that are mutually repayable (arise among companies - counterparties that purchase goods and services among themselves);
• C - the velocity of circulation or the number of turnovers of funds in the country's economy for the period.

Let's move on to the next formula.

Formula I. Fisher

This formula is based on the equilibrium equation, from which the necessary unknown can be found.

Remark 2

So the formula looks like this: $MV=PQ$

• $M$ is the amount of money in the economy (the sum of all monetary aggregates);
• $V$ - the velocity of circulation or the number of turnovers of funds in the country's economy for the period;
• $P$ – set price level;
• $Q$ is the amount of goods that are circulating in the country's economy.

Let's consider how these formulas work on the example of calculations.

Calculation examples

Let us determine the indicators of the velocity of circulation of the money supply in turnovers ($V$) for the country $N$, if the values ​​of GDP for the base and current year, as well as the money supply (the sum of monetary aggregates) are known. For calculations, it is more convenient to use the I. Fisher formula, that is, the equilibrium equation.

The initial data are presented in Figure 1.

Then, for the base year $V$ = 62/8.5 = 7.29 times or (365 /7.29 = 50.068 days).

For the reporting year $V$ = 153/20 = 7.65 times or (365 /7.65 = 47.712 days).

Based on these calculations, we can say that there is an increase in the velocity of circulation of funds in the country's economy, which may indicate an increase in the level of the economy and economic growth.

Indeed, one can see a significant increase in the money supply in circulation with an increase in output in the country. It can also be assumed that there was an increase in demand for manufactured goods and services, which caused an increase in the money supply in the economy.

Remark 3

In this case, it is necessary to compare the growth of the money supply with inflation, so the country's Gross Domestic Product at current prices is used for calculations. If the price level is not provided for, then the country's Gross Domestic Product expressed in constant prices can be used, but this may affect the results of the analysis and forecasting of the money supply.

As another example, let's calculate the velocity of circulation of funds in the economy of the Russian Federation for 2016. For the initial data, we take the data of the Federal State Statistics Service.

GDP of the Russian Federation in 2016 at current prices = 86043.6 billion rubles.

Money supply in circulation = 35179.7 billion rubles.

So in 2016 $V$ = 86043.6 / 35179.7 = 2.44 times or (365 / 2.44 = 149.6 days).

For comparison, in 2015 this indicator was: $V$ = 83232.6 / 31615.7 = 2.63 or (365 / 2.63 = 138.8 days).

We see a reduction in the rate of turnover of the money supply in the economy, which is a sign of a fall in economic growth. Indeed, with an increase in the total money supply in the country, the country's Gross Domestic Product decreased by 3.27% in 2016 compared to 2015.

Commodity-money relations require a certain amount of money for circulation. The law of monetary circulation, discovered by K. Marx, establishes the amount of money necessary for them to perform the functions of a medium of circulation and a means of payment.

The amount of money needed to fulfill the function of money as a medium of exchange depends on three factors:

Quantity of goods and services sold on the market (direct connection);

The level of prices for goods and tariffs (direct connection);

Velocity of circulation of money (feedback).

All factors are determined by the conditions of production. The more developed the social division of labor, the greater the volume of goods and services sold on the market; the higher the level of labor 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:

The total volume of circulating goods and services (direct dependence);

The level of commodity prices and tariffs for services (the relationship is direct, since the higher the prices, the more money is required);

The degree of development of non-cash payments (dependence is inverse);

The velocity of circulation of money, including credit (dependence is inverse).

Thus, the law that determines the amount of money in circulation has the following form:

Amount of money needed as a medium of exchange and means of payment = (Sum of prices of goods and services sold - Sum of prices of goods sold on credit, for which the due date has not come + Amount of payments on debt obligations - Amount of mutually repayable payments) / Average number of money turnovers both means of exchange and means of payment.

The law of money answers the question of how much money must be in circulation in order for money to fulfill its function.

The law of money circulation establishes the amount of money needed to perform the functions of a medium of circulation and a means of payment.

The amount of money needed to fulfill the functions of money as a medium of exchange depends on three factors:

§ the number of goods and services sold on the market (direct connection);

§ level of prices for goods and tariffs (direct connection);

§ Velocity of circulation of money (feedback).

The circulation of money does not occur spontaneously - it obeys certain laws. Their knowledge allows you to quickly respond to or other changes, make appropriate decisions and influence economic development. These rules of circulation are called the laws of money circulation.

The basic law of money circulation, the formula of which was presented by K. Marx, links prices, velocity of circulation and the amount of money:

Quantity of money = sum of prices / number of units turnover

This formula is more true for gold circulation. When gold is circulated as money, due to the limited gold reserves, the ratio between the amount of gold (coins) and goods is established spontaneously, but relatively accurately: the excess money is withdrawn from circulation and goes into the sphere of accumulation (treasures), and if there is a shortage of coins, their withdrawn part is returned their treasures into circulation.

When credit money appears, an unsecured issue occurs. In this case, the appearance of inflation is inevitable, i.e. depreciation of money due to their increased quantity. It is necessary to keep track of that part of monetary obligations that can be mutually repaid without additional emission. The above equation takes the following form:

The amount of money \u003d the sum of the prices of goods, services - the sum of the prices of goods sold on credit + payments on debt obligations - the amount of offsets

The quantity theory of money uses Fisher's equation: M*V = P*Q.

M - circulating money supply;

V - the speed of circulation of the monetary unit;

P is the average price level;

Q is the number of goods and services.

This law is called the law of paper money circulation. Since the amount of money can now increase indefinitely, the role of the state in monetary regulation is colossal. One of the types of regulation is to maintain the structure and volume of the money supply - the total purchasing power of funds.

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

The law of money circulation expresses the economic interdependence between the mass of circulating commodities, the level of their prices, and the velocity of money circulation.

If money functions as a means of payment, then the total amount of money must decrease. Credit has the opposite effect on quantity.

Factors affecting the amount of money in circulation:

1. Volume of commodity mass(the higher it is, the more money is needed, but the concept of a commodity includes everything that is exchanged, including labor, land, securities. It follows that in order for an exchange to take place, there must be an assortment).

2. Price level. The lower the price, the more goods and, accordingly, money are needed.

In the opposite direction (less money) if the following factors apply:

§ the degree of credit development (the more goods on credit, the less money is needed);

§ development of non-cash payments;

§ frequency of money payments (the more often money is paid, the less money is needed for turnover).

3. Velocity of money(the number of revolutions of the monetary unit for a period of time).

30. Non-cash circulation is settlements made by recording on bank accounts.
Cashless payments in modern conditions are of great importance, because. lead to the replacement of cash and reduce the costs of circulation of cash, i.e. reducing the cost of printing cash, their transportation, recalculation, storage.
Legislation and banking rules contain legal norms that define the principles and procedure for settlements, the rights and obligations of the subjects of settlement legal relations. They predetermine the content and forms of settlements, the nature of the relationship between commercial banks and specific enterprises in the process of making settlements. In accordance with the law, the funds of enterprises are subject to mandatory storage in banks. To store funds, banks open to enterprises, depending on the nature of their activities and sources of financing, current, settlement and other accounts. Each enterprise can have only one main settlement or current account.

Settlement accounts are opened for all enterprises, regardless of their form of ownership, operating on the principles of commercial settlement and having the status of a legal entity. The account holder has the right to dispose of the funds on the account at his own discretion.
Current accounts are opened by organizations or institutions that are not engaged in commercial activities and do not have the status of a legal entity. Current account holders can manage their funds in accordance with the estimate approved by the parent organization.

Non-cash money turnover represents part of the cash flow in which the movement of funds is carried out in non-cash form in the order of transfer (transfer) of funds from the payer's account in the bank to the recipient's account, by offsetting mutual claims, as well as using other banking operations.

Cash flow in non-cash form mediates the change commodity forms of value on monetary, monetary - for commodity, as well as the processes of distribution and redistribution of funds by financial and credit methods.

Non-cash money turnover is the main type of money turnover. It accounts for about 80% of all payments in the economy of our country.

Non-cash money turnover covers:

the movement of the social product;

distribution and redistribution of national income;

payments for goods, services and work performed;

payments related to the formation of budget revenues and the implementation of budget expenditures;

payments relating to sources of capital investment;

· settlements related to the financing of enterprises;

· budgetary, intra-industry, intra-economic redistribution of funds;

Receipt and repayment of bank loans;

· payment and use of a part of monetary incomes of the population;

other payments and receipts.

The participants in these relationships are organizations, including banks and non-banking financial and credit institutions, the population.

Predominant development of non-cash money circulation compared with cash circulation is explained as objective reasons, as well as deliberately carried out by the state measures in order to create a rational system of monetary settlements and save public distribution costs, since the speed of movement of money in non-cash money circulation is much higher the speed of movement of money in cash circulation.

Replacement of cash settlements with non-cash payments and their rational organization in a market economy are essential for the regulation of money circulation, the formation of banking resources, the organization of credit relations, the control over the work of enterprises and the reduction of distribution costs associated with monetary settlements.

In non-cash money circulation, money functions as a means of payment. This is determined by the fact that transfers to accounts are separated in time from the movement of material values, which they mediate, the repayment of monetary obligations occurs after their occurrence. When offsetting mutual claims in bank accounts, only the unset off difference is reflected - a credit or debit balance. However, the entire amount of the credited funds, which is included in the volume of non-cash money turnover, is carried out on accounts opened for offsetting.

Non-cash money circulation is associated with credit relations arising in the process of replacing real money with credit operations. In the absence of funds on the payer's account, non-cash money turnover can be carried out at the expense of a bank loan.

Commercial banks Russia perform the function settlement and cash services for clients. All settlements and cash services for bank customers are carried out by debiting or crediting funds to their bank accounts.

A current account is opened for organizations that have an independent balance sheet and operate in accordance with the rules of commercial settlement , and their structural subdivisions open settlement sub-accounts and current accounts. Settlement sub-accounts are used for settlement operations with non-cash funds (except for the transfer of proceeds in cash), the current account is intended for operations related to the issuance of cash and non-cash transfer of funds to deposits of citizens, deductions from wages.

The current account reflects monetary transactions related to current economic activity. The account holder has the right on one's own dispose of funds, observing the rules of settlements. The balances on the current account of the organization serve as a cash reserve for future payments. Sources of formation of funds in the current account are mainly amounts received from the sale of products. Funds from the organization's current account are used for payment material assets, payment of wages, etc.

To perform a limited set of operations, legal entities can open other accounts in banks. Clients independently choose banks for credit and cash management services and can receive the full range of banking services in one or several banks.

The Bank keeps funds of organizations on their accounts, credits the amounts received to these accounts, fulfills the orders of organizations on their transfer and issuance from accounts and on other banking operations provided for by banking rules and the agreement.

Payments by organizations are mainly carried out in a non-cash form from accounts opened with banks. In case of insufficient funds on the accounts, the order of payments is established.

31. Benefits of cashless payments:

§ control of cash flow;

§ expansion of credit opportunities of the banking system;

§ non-cash turnover accelerates the turnover of funds and the turnover of material resources.
Principles of cashless payments:
settlements are carried out only with the consent of the payer (acceptance, in writing)

Settlements are made without the use of cash;
control is exercised by all participants;

Payments are made at the expense of payers' funds or bank loans;
freedom of choice by subjects of forms of non-cash payments and
securing them in contracts.

Calculations are carried out within the terms stipulated by the contract.

The value of cashless payments:
1) contribute to the concentration of monetary resources in banks. Temporarily stored funds of enterprises, organizations, and the population are credit resources;

2) non-cash payments contribute to the normal circulation of funds in the national economy;
3) a clear distinction between non-cash and cash
revolutions;
4) creates conditions facilitating the planning of monetary circulation;
5) the expansion of the sphere of non-cash circulation allows you to more accurately determine the size of the issue and withdrawal of cash from circulation.

32. Forms of non-cash payments are established by the Central Bank. Bank customers independently choose the applicable forms of payment, which is reflected in the agreement with the bank.

In modern conditions, on the basis of the current regulation of the Central Bank of the Russian Federation of October 3, 2002 No. 2-P "On non-cash payments in the Russian Federation" (as amended on March 2, 2008), the following forms of non-cash payments are in force in Russia:

1. payment orders (this is a form of non-cash payments, which is an order from the account depositor (payer) to his bank to transfer a certain amount to the account of the recipient of funds opened in this or another bank.);

2. payment requirements (the requirement of the supplier to the buyer to pay, on the basis of the settlement and shipping documents (consignment note) sent to him, the cost of the products delivered under the contract, the work performed and services performed by the servicing bank. Issued by the supplier.);

3. settlements under a letter of credit (A letter of credit is a form of payment with the preliminary opening of a special account. When making settlements under a letter of credit, a bank acting on behalf of the payer to open a letter of credit and in accordance with its instructions (issuing bank) undertakes to make payments to the recipient of funds or pay, accept or discount a bill of exchange or authorize another bank (nominating bank) to make payments to a payee or pay, accept or discount a bill of exchange.);

4. collection settlements (represent a banking operation through which the bank, on behalf of and at the expense of the client, on the basis of settlement documents, performs actions to receive payment from the payer. For collection settlements, the issuing bank has the right to attract another bank (executing bank). Collection- an intermediary banking operation for the transfer of funds from the payer to the recipient through the bank with the crediting of these funds to the recipient's account.);

5. settlements by checks (a security that contains the order of the issuer of the check to the bank to pay the amount indicated in it to the holder of the check.);

6. in other forms (eg credit cards).

Forms of non-cash payments are used by clients of credit institutions (branches), institutions and divisions of the Bank of Russia settlement network, as well as by the banks themselves.

Forms of non-cash payments are chosen by bank customers independently and are provided for in contracts they conclude with their counterparties.

Within the framework of the forms of non-cash settlements, payers and recipients of funds (collectors), as well as banks serving them and correspondent banks, are considered as participants in settlements.

33. Monetary system- this is the organization of money circulation in the country, which has developed historically and is enshrined in national legislation. It was formed in the XVI - XVII centuries. with the emergence and establishment of capitalist production, as well as the centralized state and the national market. With the development of commodity-money relations and capitalist production, the monetary system has undergone significant changes.

The monetary system is formed and operates on the basis of the banking system. Elements of the monetary system Keywords: monetary unit, scale of prices, emission system and state apparatus for regulating monetary circulation.

Currency unit- This is a legally established banknote that serves to measure and express the prices of all goods and services. It is usually divided into small proportional parts. Most countries have a decimal distribution system (1 US dollar - 100 cents, 1 British pound - 100 pence).

Price Scale- a means of expressing value in monetary units, based on the weight of the monetary (precious) metal in the monetary unit. Now the scale of prices is formed under the influence of supply and demand.

Emission system- the legally established procedure for the issuance and circulation of banknotes. The issue of banknotes is carried out by the central bank in three ways:

granting loans to credit institutions in the form of rediscounting of commercial bills;

lending to the treasury secured by government securities;

issuance of banknotes by exchanging them for foreign currency.

The types of banknotes that have legal tender value are also determined by special laws or government acts. In modern conditions, all banknotes issued by the state are required to be accepted as debt repayment in the territory of this country. The following types of banknotes are distinguished: bank (banknotes) and treasury notes, small change.

34. Depending on the type of money (money as a commodity that acts as a universal equivalent, or money as a sign of value), there are two types of money systems:

a system of metallic circulation, which is based on full-fledged money (silver, gold), performing all five functions; banknotes in circulation are freely exchanged for real money (gold coin, gold bullion and gold exchange standard);

a system of paper-credit circulation in which real money is replaced by signs of value, and there are paper (treasury bills) or credit money in circulation. The world monetary system was finally formed on the basis of paper money circulation.

With the system metallic money circulation two types of monetary systems are distinguished: bimetallism and monometallism - depending on how many types of metal are accepted as a universal equivalent for the base of monetary circulation.

Bimetallism is a monetary system in which the role of the universal equivalent is assigned to two metals (silver and gold). Free minting of coins from two metals and their unlimited circulation was supposed. The market set two prices for one commodity. This system existed in the 16th - 18th centuries, and in a number of Western European countries it operated in the 19th century.

The development of capitalism, which demanded the stability of the monetary system and a single common equivalent, led to the transition to monometallism.
Monometallism - a monetary system in which one metal (silver or gold) serves as a universal equivalent. Under this system, coins from one precious metal and denominations of value, exchanged for coins, function. There are three types of gold monometallism - gold coin, gold bullion and gold trade standards.

The gold coinage standard was characterized by gold circulation, free minting of coins, the unhindered exchange of banknotes for gold, and the movement of gold between countries was not prohibited. The law of monetary circulation acted automatically. This standard required the presence of gold reserves in issuing centers.

Paper-credit systems- these are monetary systems, devoid of a metal base, built on a representative principle. Such monetary systems currently exist in almost all countries.
The main features of the modern monetary system are:

the abolition of the gold content of the monetary unit, the demonetization of gold;

the transition to credit money that cannot be exchanged for gold, which does not differ in nature from paper money (tickets of state treasuries). They have been preserved in circulation;

issuance of banknotes into circulation in order to lend to the economy, the state, the growth of official gold and foreign exchange reserves;

development and predominance of non-cash turnover over cash in monetary circulation;

strengthening state regulation of money circulation in connection with the violation of the basic principle of the monetary system - the correspondence of the amount of money to the objective needs of economic turnover.

35. Monetary system of the Russian Federation- this is a form of organization of monetary circulation, enshrined in national legislation. It consists of the following elements: the monetary unit, the scale of prices, the type of money, the emission system, the mechanism of monetary regulation. The national monetary system, having relative independence, is also included in the country's monetary system. The modern monetary system of Russia, like most other countries, is based on money that cannot be exchanged for gold. According to this Law, the official monetary unit (national currency) of the Russian Federation is the ruble, which is equal to 100 kopecks. The law prohibits the issuance of other monetary units and monetary surrogates, emphasizes the responsibility of persons violating the unity of monetary circulation. The official ratio between the ruble and gold or other valuable metals is not established. The exclusive right to issue cash, organize circulation and withdraw it from circulation on the territory of the Russian Federation belongs to the Central Bank of the Russian Federation. The types of money that have legal tender value are bank notes (banknotes) and metal coins, samples of which are approved by the Bank of Russia. Banknotes and metal coins are unconditional obligations of the Central Bank and are backed by its assets. The Central Bank of the Russian Federation is only responsible for planning the volume of their production.

In order to organize cash circulation, it is entrusted with the following functions:

· forecasting and organization of production of banknotes and metal coins;

creation of reserve funds of banknotes and coins;

· definition of rules of storage, transportation and collection of cash;

Establishment of signs of payment of banknotes and the procedure for replacing and destroying banknotes;

· Approval of the rules for conducting cash transactions for credit institutions.

Emission mechanism is the procedure for issuing money into circulation and withdrawing it from circulation. Non-cash money is issued by commercial banks in the process of their credit transactions. When repaying loans, money is withdrawn from circulation. The issue of cash is carried out by cash settlement centers of the Central Bank of the Russian Federation. Withdrawal of cash occurs when commercial banks transfer cash to cash settlement centers.

There are currently two types of banknotes in cash circulation channels, which are an unconditional obligation of the Bank of Russia and are mandatory for acceptance in all types of settlements and payments - banknotes (bank notes) and coins.

36. Payment system is a set of rules, contractual relations, technologies, calculation methods, internal and external regulations that allow all participants to carry out financial transactions and settlements with each other. Consider, according to this definition, each component of the payment system. From the standpoint of systemicity, all elements of the latter must be in interaction, only in this case the effectiveness of its functioning can be achieved.

The efficiency of the payment system is the timeliness and reliability of the transfer and accounting of payment resources allocated for making payments. With the effective functioning of the payment system, transaction costs are significantly reduced, and there is an opportunity for better liquidity management in both banks and enterprises. Various failures, unintentional or unexpected delays in payments significantly undermine the credibility of the payment system, economic agents begin to doubt whether payments will be made at all. All this leads to an increase in risk, and thus an increase in the costs of participants in the payment system and to a payment crisis. This is clearly evidenced by the crises of 1994 and 1998. in Russia, when non-payments by customers led to non-payments by commercial banks.

Tasks and functions of the payment system. The main tasks facing the payment system are the following:

continuity, safety and efficiency of functioning;

reliability and durability, guaranteeing the absence of disruptions or complete failure of the payment system;

Efficiency, providing a fast, economical and accurate output of the workflow;

a fair approach, such as requiring participation in the payment system of persons who meet the necessary qualification criteria.

The main function of any payment system is to ensure the dynamics and sustainability of economic turnover. Having an efficient payment system promotes monetary control and helps banks actively manage liquidity, thereby reducing the need for large and excess reserves. This simplifies the process of formulating a monetary program and speeds up the implementation of financial policy operations.

Elements of the payment system. These include the following:

· institutions providing services for money transfers and repayment of debt obligations;

· financial instruments and communication systems that ensure the transfer of funds between economic agents;

· contractual agreements regulating the procedure for non-cash payments.

The elements of the payment system are closely interconnected, their interaction is carried out according to certain rules, enshrined in the regulatory legal acts of the state and international agreements. The work of the Russian payment system as a whole is built in accordance with the relevant legal acts, on the basis of which the rules for its functioning have been developed. They are the same for any system and determine the set of procedures that are necessary for the functioning of the payment system and the transfer of funds from one economic agent to another. Payment system procedures include established forms of non-cash payments, payment document standards, as well as various means of information transfer (communication lines, software and hardware).

The main participants in the payment system are the central bank, commercial banks, non-banking institutions, including clearing and settlement centers. They act as institutions providing money transfer and debt repayment services. Ensuring the continuity of settlements is assigned directly to the central bank of the state. The work of the payment system is closely related to the implementation of the main goal of the central bank - ensuring the stability of the banking system. In this case, the central bank can act as:

user of the payment system, i.e. to carry out their own operations;

a participant in the payment system, i.e. make or receive payments on behalf of their customers;

a person providing payment services;

· a defender of public interests, i.e. to act as a "regulator" of the payment system, supervising its participants and establishing general rules for their work.

The competence of central banks, as a rule, includes risk management of payment systems. The Central Bank controls liquidity risk, credit and systemic risks in the payment system, regulates the liquidity of its participants, including on the basis of the function of a lender of last resort, acts as an operator of the payment system.

Settlement processes. The payment system includes three main settlement processes:

· payment initiation - the process by which an economic entity instructs its servicing bank to transfer funds to another economic entity. Payment is initiated using payment instruments;

· the process of transfer and exchange of payment instruments between banks - participants of the payment system;

· the process of settlement between member banks that debit (credit) funds from the accounts of their customers.

When paying in cash, cash itself acts as a payment instrument. Settlements take place directly between the payer and the recipient. The role of banks is reduced to servicing the circulation of cash: issuing them from the cash desks of the bank, crediting them to accounts, collection, storage, etc. The Central Bank issues cash into circulation, establishes the rules for performing operations with them, predicts the need for turnover, regulates the denomination composition cash supply, etc. The circulation of cash occurs in non-bank turnover, the rules for cash settlements are inherently reduced to the rules for performing cash transactions.

With non-cash payments, all payments are made within the banking system. To conduct them, an enterprise opens a settlement or current account in a commercial bank, on which its free cash is stored. When making a non-cash payment, money must be debited from the payer's account and credited to the recipient's account - another company. If the accounts of the payer and the recipient are in the same bank, then there is a simple movement of funds through the accounts. If their accounts are opened in different banks, then the funds are transferred from one bank to another, i.e., interbank settlements are carried out. Correspondent accounts are used for settlements between independent banks.

Correspondent account- this is an account that one bank (respondent bank) opens in another bank (correspondent bank) to perform operations on this account, stipulated by agreements between them. The account maintained by the correspondent bank is called LORO. On the balance sheet of the respondent bank, it is called NOSTRO. Master entries are made on the LORO account. They are decisive for ensuring the timeliness of settlements. Operations on the NOSTRO account are carried out according to the mirror accounting method.

Settlement operations on these accounts are carried out subject to ensuring the daily equality of their balances and are reflected in the balance sheets of the respondent bank and the correspondent bank on one calendar date (day, month, year) - the date of transfer of payment (DPP). Correspondent accounts are opened by commercial banks to each other by mutual agreement. Correspondent accounts of commercial banks are opened in the Central Bank of the Russian Federation without fail. Each bank has one correspondent account with the settlement subdivision of the Central Bank of the Russian Federation. Settlement divisions of the Bank of Russia include head cash settlement centers and cash settlement centers.

Settlements between banks can take place both through the settlement network of the Central Bank of the Russian Federation, and on the basis of two- or multilateral correspondent relations between commercial banks. The latter can carry out these relations with each other without opening correspondent accounts, but through an account they maintain with a third bank.

Any interaction between the participants of the payment system is built on certain contractual relationships. On the basis of the agreement, a correspondent account is opened in the settlement network of the Bank of Russia and correspondent accounts in other banks and credit institutions. The agreement, as a rule, determines the procedure for opening and maintaining an account, the procedure for conducting operations on the latter (including the timing of payments), the rights and obligations of the parties, their responsibility. It contains the payment details of the parties. In addition, the contract provides for the cost of rendering certain services by the parties, its validity period, the procedure for changing, terminating, and resolving disputes.

Correspondent (sub-account) and bank (for individuals and legal entities) accounts agreements serve as the basis for the functioning of the Russian payment system.

If a resident bank opens an account with a non-resident bank, then it signs with the correspondent bank not an agreement, but tariffs for operations, i.e. its agreement to the conditions of the correspondent bank, according to which payment services are provided. All their relationships in the future are regulated only within the framework of this tariff policy of the counterparty, provided that this does not contradict the international and domestic rules of the state of the correspondent bank.

Depending on the organization of interbank settlements, various types of payment systems are distinguished.

Types of payment systems. In order to determine the characteristic models used in funds transfer systems, it is necessary to highlight the main differences between them, for example, such as:

system operator (central bank or private organization);

settlement mechanism (gross or net settlements);

· credit mechanism (with or without granting a credit to the participant of his settlements during the working day).

The payment system is an integral part of the financial infrastructure of a market economy, in which the organization and functioning of the monetary, banking and payment systems are determined to a large extent by the needs of the markets, and state control ensures their stability and security. The development of financial infrastructure, including the reform of the payment system, has become a priority in countries where the formation of a market economy is taking place.

The efficiency of the functioning of financial markets and the banking sector of the economy largely depends on the payment system operating in the country.

Question number 40. Money circulation. The law of money circulation.

Money turnover - the process of continuous movement of funds in cash and non-cash form between business entities.

In other words,

Money circulation is the movement of money in the performance of their functions in cash and non-cash forms, serving the sale of goods, as well as non-commodity payments and settlements in the economy.

The country's money turnover, reflecting the movement of money, is the sum of all payments made by enterprises, organizations and the population in cash and non-cash forms for a certain period of time.

The legal foundations of money circulation in the country are enshrined in the Constitution of Ukraine and in the Law of Ukraine "On the NBU" and the Law of Ukraine "On payment systems and the transfer of DS to the UKR".

Main the tasks of legal regulation of money circulation are:

Ensuring a clear delineation of powers and responsibilities m / d state-va in the field of monetary circulation.

Providing state authorities with assistance by means of the norms of regulation of monetary circulation.

Supporting the necessary growth rates of the money supply in circulation; maintaining the correct ratio of m / d in cash and non-cash DS

Money circulation is subdivided into cash and non-cash circulation.

Cash circulation- this is the movement of cash in the sphere of circulation and the performance by them (today) of two main functions: a means of circulation and a means of payment. Cash is used for the circulation of goods and services.

The money market is characterized by the demand for money and the supply of money. Demand for money is presented if cash is preferred over other types of assets (securities, real estate, etc.). When business entities choose where to invest money, they are guided by profitability, liquidity, risk level, and the rate of interest on loans. Money has universal liquidity, but securities also have a high degree of liquidity, and besides, securities generate income. But securities are risky. Business entities are guided by the rate of loan interest: if the interest rate is high, then it is profitable to give money on credit, it is less profitable to buy securities or real estate. If the loan interest is low, then it makes no sense to lend money, it is better to buy securities or other assets.

The demand for money is influenced by many factors. Representatives of the classical quantitative theory of money believed that such factors are the price level, the volume of production, the velocity of money (M = PQ / V).

Non-cash circulation- this is the movement of value without the participation of cash, i.e. - this is the transfer of funds to the accounts of credit institutions, the offset of mutual claims. The development of the credit system and the manifestation of customer funds in bank accounts led to the emergence of non-cash circulation.

The principles of organization of calculations are the fundamental principles of their implementation:

1) Legal regime for settlements and payments- due to the role of the payment system as the main element of any modern society. The complexity and importance of settlement relationships predetermine the need to establish uniformity through regulation. The latter is based on a set of laws and by-laws (decrees of the president, government decrees), as well as regulations of those state bodies that are entrusted with the function of regulating settlements.

2) Implementation of them mainly on the accounts of credit institutions. The presence of the latter both with the recipient and the payer is a necessary prerequisite for such calculations. Non-cash payments are carried out by legal entities and citizens through the bank in which they have opened an appropriate account. For settlement services, a bank account agreement is concluded between the bank and the client - an independent bilateral (participants have both rights and obligations) civil law agreement.

3) The presence of a double entry. If one counterparty had a write-off of funds, then the other one, on the contrary, accrued. The funds received are credited to some accounts, spent - to the debit of others. Thus, when doing double-entry accounting, the law of conservation (balance) applies: the sum of the debits of all accounts (assets) is always equal to the sum of the credits of all accounts (liabilities).

4) Availability of acceptance (consent) of the payer for payment; is implemented by using an appropriate payment instrument (check, promissory note, payment order), indicating the owner's order to debit funds, or a special acceptance of documents issued by the recipients of funds (payment request, bill of exchange).

At the same time, the legislation provides for cases of indisputable (without the consent of the payers) write-offs of funds: arrears in taxes and other obligatory payments; on the basis of writ of execution issued by the courts; some fines on orders of recoverers, etc., as well as direct write-offs: for heat and electricity, utilities and other services.

The main regulatory body of the payment system is the Bank of Russia.

The law of money circulation.

The amount of money necessary to fulfill their functions is established by the economic law of money 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 relationship), as well as the level of prices of goods and tariffs (direct relationship) and inversely proportional to the velocity of money circulation (reverse relationship).

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

According to the classical theory of L. Marshall and I. Fisher, the amount of money is determined by the dependence of the price level on the money supply:

where M is the mass of money;

P - the price of the goods;

Y is the velocity of money circulation;

Q is the number of goods on the market.

From the formula, the amount of money needed to circulate a certain mass of goods is:

M= a product price

P= the price level changes in proportion to the change in the amount of money in circulation.

The growth of the money supply is promoted by the money multiplier (from the Latin multiplicator - multiplying), which arises with the development of the 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 credit operations of banks with their customers by obtaining funds from the centralized reserve of the Bank of Russia, formed from mandatory deductions from banks. Theoretically, the multiplier is equal to the reverse required reserve rate set 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 over this period. The Bank of Russia, managing the money multiplier, carries out monetary regulation in the country.

Before considering the law of monetary circulation, discovered by K. Marx, it is necessary to define the following concepts:

National product - represents the total value of all final goods and services produced in the economic system;

National income - the total income received by the entire population and households, including wages, interest payments and profits.

National income and national product have nominal and real values. Nominal valuation - an economic indicator calculated without taking into account inflationary influences, i.e., in prices at which products are sold at the moment, at current prices. Real valuation - the cost of the product at prices adjusted for inflation.

The circulation model of goods and money can be represented as an equation of exchange, according to which the product of the money supply (M) and the velocity of money (V) is equal to the product of the price level (P) and the real national product (y):

M x V = P x y;

The velocity of money (V) is equal to the ratio of the nominal national product (H) to the value of the money supply (M):

The equation of exchange must always be fulfilled, since it follows from the classical law of money circulation, discovered by K. Marx. It answers the question of how much money society needs to service commodity generalization. The amount of money (KD) required for circulation is directly proportional to the sum of the prices of goods (SCT) and inversely proportional to the velocity of money circulation (C): KD =

According to this formula, the need for money to service commodity circulation, i.e., cash money, is determined.

The expanded formula of the law of money circulation is as follows:

KD - the amount of money needed for circulation;

MCT - the sum of the prices of goods and services;

K - the sum of the prices of goods sold on credit;

P - the amount of payments on debt obligations;

VP - the amount of mutually repayable payments;

C - the rate of turnover of the same-name monetary unit.

The amount of money needed to carry out their functions is influenced by a number of factors:

Quantities of goods and services sold on the market (direct connection);

The level of prices for goods and tariffs (direct connection);

The degree of development of non-cash payments (reverse relationship);

Velocity of circulation of money (feedback);

All factors are determined by the conditions of production. The more developed the social division of labor, the greater the volume of goods and services produced on the market, the greater should be the money supply; the higher the level of labor productivity, the lower the cost of goods, services and prices, respectively, the excess money supply should go out of circulation.

The speed of circulation of money is determined by the number of revolutions of the monetary unit for a certain period of time, since the same money constantly changes hands during a certain period, servicing the sale of goods and the provision of services.

During the functioning of gold money, their quantity was maintained at the required level spontaneously, since the treasure function acted as a regulator. This function established a relatively correct ratio between the money supply and the goods in circulation. Excess money in circulation was excluded, they left treasures. With the growth of the mass of commodities, the money returned from the treasures.

With the appearance of the function of money as a means of payment, the total amount of money should decrease. Credit has an inverse effect on the amount of money. Such a decrease is caused by the repayment by mutual offset of a certain part of debt claims and obligations.

The main condition for a stable monetary unit of the country is the compliance of the economy's need for money with their actual receipt in cash and non-cash circulation.

Money supply - a set of purchasing, payment and savings funds, which determines economic ties and belongs to individuals, legal entities and the state. This is an important quantitative indicator of the movement of money.

To analyze changes in the movement of money on a certain date and for a certain period, monetary aggregates M1 are used in financial statistics; M2; M3; M4; M5;

M1 - cash in circulation: banknotes, coins, treasury notes.

M2 - consists of the M1 aggregate and funds of enterprises on settlement, current, special accounts in banks, deposits of the population in savings banks, including compensation. For settlements with the funds in these accounts, their owners issue payment orders, or checks, or letters of credit. It is the M2 unit that services operations for the implementation of GDP, the distribution and redistribution of national income, accumulation and consumption.

M3 - equals M2 plus time and savings deposits in commercial banks, as well as short-term government securities. Savings deposits in commercial banks are withdrawn at any time and turn into cash. Term deposits are available to the depositor only after a certain period of time and, therefore, have less liquidity than savings deposits.

M4 consists of M3 and savings deposits in specialized credit institutions.

M5 includes aggregate M4 and certificates of deposit of large commercial banks. This part of the funds invested in securities is not created by the banking system, but is under its control.

A balance is necessary between the aggregates, otherwise there is a violation of monetary circulation. Practice shows that equilibrium occurs when M2 is greater than M1; it strengthens when М2+М3 is greater than М1.

In this case, money capital is transferred from cash to non-cash circulation. If this ratio between aggregates is violated, complications begin in monetary circulation: a shortage of banknotes, an increase in prices, etc.