Money-credit policy - a set of interrelated measures taken by the Central Bank in order to regulate aggregate demand through the planned impact on the state of credit and money circulation.

Monetary policy can be aimed at stimulating credit and money issue. In this case there is credit expansion. The Central Bank adheres to a similar policy in the context of a decline in production and an increase in unemployment, trying to revive market conditions. On the contrary, in the event of an economic recovery, wanting to prevent overheating of the economy, the Central Bank restrains credit and limits money emission. Then it holds credit restriction.

An important task of the Central Bank in the field of monetary credit policy- control over money circulation in order to prevent inflation or reduce its rate. The basic question for such regulation is how much money is needed for circulation, and what principles should be followed when conducting monetary policy.

All monetary policy instruments can be divided into two groups: general tools affecting the money market as a whole; And selective instruments , intended to regulate specific types of credit or lending to individual industries and large firms.

Common monetary policy instruments The Central Bank are: open market operations, accounting and interest (discount) policy based on changes in the discount rate; establishing a required reserve requirement for commercial banks.

Let's give brief description main monetary instruments.

Open market operations- this is the purchase and sale by the Central Bank of state valuable papers

Sale securities to commercial banks and other financial institutions by the Central Bank leads to a decrease in the reserves of commercial banks. Accordingly, the ability of commercial banks to provide loans to their clients is reduced. As a result the money supply decreases.

Purchase securities held by commercial banks gives the opposite result: the reserves of commercial banks and their ability to issue loans expand, the money supply increases.

Open market operations are effective in countries where there is a large market for government securities.

Accounting and interest (discount) policy The Central Bank's job is to regulate the interest rate (discount) at which commercial banks can borrow reserves from the Central Bank.

If the Central Bank raises the official discount rate then commercial banks reduce the amount of borrowing, which, in turn, leads to a decrease in reserves, an increase in interest rates and a reduction in lending operations.

Lowering the discount rate. The Central Bank creates conditions for increasing reserves and lowering interest rates, and the volume of lending operations is growing.

The discount rate mechanism operated effectively at the beginning of the 20th century. Subsequently, the use of this monetary policy instrument yielded less results. This was facilitated by the actions of banking monopolies, which set interest rates by conspiracy, and not under the influence of the market. The internationalization of economic life has also reduced the effectiveness of accounting and interest policy: a decrease in the discount rate can lead to an outflow of capital from the country.

Establishing the norm of required reserves commercial banks are also used by the Central Bank to directly influence the amount of bank reserves. This tool allows you to quickly influence your financial situation.

The monetary policy of the Central Bank is presented in two forms:

The policy of “cheap” money. It is carried out during a recession in order to stimulate investment and expand production.

The Central Bank increases the money supply by:

Reducing the required reserve ratio;

Reducing the discount rate;

Purchase of government securities on the open market.

The policy of “expensive” money is carried out during a period of inflation in order to reduce aggregate demand.

The Central Bank reduces the money supply by:

Increasing the required reserve ratio;

Increasing the discount rate;

Sales on the open market of government securities.

Effectiveness of monetary policy. The question of whether credit- monetary policy to ensure full employment without accelerating inflation remains open. This is because using monetary policy for this purpose has its pros and cons. Let's look at them.

TO monetary merits -credit policy usually attributed to both its faster action compared to fiscal policy and the fact that monetary policy is less susceptible to political pressure than fiscal policy.

Disadvantages of money-credit policy they believe that it is less effective in preventing a recession than in curbing inflation. It is also noted that its positive effect can be absorbed by changes in the velocity of money and the fact that it does not always lead to a significant change in investment costs in the economy.

conclusions.

1. The monetary system is a form of organization of money circulation.

2. The money supply circulating in the country, conditionally divided into monetary aggregates (M 1, M 2, M 3, L), differing in the degree of liquidity.

3. The demand for money is a function of the interest rate. The demand for money is determined by transactional and speculative motives.

4. The money supply is relatively stable and is determined by the state.

5. On money market the equilibrium interest rate is formed.

6. The form of movement of monetary capital is a loan on the principles of repayment and payment. Credit system includes banks and other financial institutions that are financial intermediaries.

7. Banking system- two-tier, includes the Central Bank and commercial banks. Commercial banks carry out passive and active operations for the purpose of generating banking profits.

8. The Central Bank carries out monetary policy using the discount rate, the required reserve ratio, and open market operations.

Review questions

1. Name the main functions of money.

2. What are the components of the money supply? Do they differ in terms of liquidity?

3. What determines the demand for money for transactions and the demand for money from assets?

4. What would be the effect of an increase in the money supply in an underemployed economy?

5. Why is there an intermediate goal dilemma in the conduct of monetary policy?

6. Show what happens if central bank increases the required reserve ratio.

Instruments of monetary policy pursued by the Central Bank of the country.

Objectives and instruments of monetary policy.

Monetary policy state consists of changing the money supply (the amount of money in circulation) in order to change demand, the price level in the national economy, the volume of national production and employment.

The main objectives of monetary policy are:

1. + Stimulating credit and money issues during economic stagnation (cheap money policy);

2.– Containment of credit and money emission during inflation (dear money policy).

The change in money supply is carried out mainly not by increasing or decreasing the issue of cash, but by influencing the volume of commercial lending.

Monetary policy carried out by regulating the money supply in circulation.

Valid three the main instruments that allow the Central Bank to influence the money supply in the country:

1.Change in reserve norms: the bank keeps part of the money in an account with the Central Bank.

2. Carrying out purchase and sale operations of government securities on the open market. The purchase of government securities by the Central Bank increases the money supply in the country, and the sale reduces it.

3. Setting the discount rate (refinancing rate). The percentage at which the Central Bank makes loans to other banks. Such loans do not require mandatory reserves. A low rate allows the bank to give loans to people, also at low rates. And vice versa.

Advantage the efficiency of its influence on the economy.

Disadvantages Ineffectiveness during major depression

Cheap money policy carried out when the value of real GDP decreases and unemployment increases, it is aimed at increasing the level of economic activity and employment by expanding lending to business entities. This is possible if loans become cheaper, i.e. lowering their interest rates

Dear money policy The Central Bank sells government securities, increases reserve norms and refinancing rates. As a result of a reduction in the amount of money in economic circulation, loan interest rates increase, and the number of people willing to take out expensive loans will decrease significantly.

Cheap money policy	Dear money policy
Problem: recession, unemployment	Problem: inflation
The Central Bank must buy securities, lower the required reserve ratio or the discount interest rate	The Central Bank must sell securities, increase the required reserve ratio or raise the interest rate
Money supply increases	The money supply is decreasing
Interest rate decreases	Interest rate increases
Investment costs increase	Investment costs are reduced
Real NNP increases by an amount that is a multiple of the increase in investment	Real NNP is reduced by an amount that is a multiple of the decrease in investment
Unemployment is falling	Inflation is falling

43. Commercial bank: concept, types, functions.

Bank- an economic institution engaged in attracting and placing financial resources. Commercial banks rep. personal the main "nerve" centers of credit monetary system. Modern commercial Bank yavl. a credit and financial institution of a universal nature. In the early stages of the development of banking, commercial banks served mainly trade, financed transportation, storage and other operations related to goods. exchange.

Functions of commercial banks - this is first of all accumulation of term deposits(maintenance of current accounts) and payment of checks issued to these banks, as well as provision of loans entrepreneurs. These credit institutions also carry out settlements and organize payment turnover throughout the national economy. On the basis of their operations, credit money (checks, bank bills) arises. At the turn of the 80-90s. the active introduction of commercial banks into different countries into the insurance business. As a result, clients of commercial banks can use a wide range of services.

Commercial banks can be classified:

1. By form of ownership. Depending on the ownership of capital, there are:

State banks, if capital commercial bank belongs to the state. There are two types of public banks - central banks, which carry out their operations and policies in accordance with the requirements of the economy, without making profit as their goal. State commercial banks provide services to sectors of the economy, lending to which is unprofitable for private capital, ensuring the implementation of state policy in the field of lending to the economy, influencing investment, intermediary and settlement operations.

Joint stock banks are the most common form of bank ownership at the moment. The equity capital of such banks is formed through the sale of shares. There are open joint-stock companies (OJSC) and closed joint-stock companies (CJSC). In the first case, shares are sold to everyone; in the second, they are distributed only among the founders or another predetermined circle of persons. The main constituent document of joint-stock banks is the Charter.

Cooperative (share) banks, the capital of which is formed through the sale of shares. Rarely encountered in practice.

Municipal banks are formed at the expense of municipal property or are managed by the city.

Mixed banks, when the bank's own capital combines different forms of ownership.

Joint banks, or banks with foreign capital, if their authorized capital owned by foreign participants or branches of banks in other countries. For example, in Russia in 2008 there were 202 banks with foreign capital.

In accordance with Federal Law No. 395-1 “On banks and banking» banks in Russia can be created as a limited or additional liability company, Joint-Stock Company(open or closed).

2. According to the nature of economic activity, there are emission, commercial, specialized banking institutions. The issuing bank issues banknotes; accordingly, the country's central bank acts as the issuing bank. Commercial banks -- credit organizations providing credit and settlement services to industrial, commercial and other enterprises and organizations, the population. Specialized banking institutions are engaged in lending to a specific type of business (for example, mortgage, investment, savings, industrial and other banks).

3. According to the terms of loans issued, banks differ in short-term lending - they issue loans for up to three years, and long-term lending - they issue long-term loans (over three years, for example, mortgage loans).

4. On an economic basis, they are distinguished depending on the industry served - industrial, commercial, agricultural banks.

5. By territory, banks are divided into local (regional), federal, republican and international.

6. Large, medium and small cans are distinguished by size.

7. Based on the volume and variety of operations, banks are divided into universal (perform all types of operations) and specialized (mortgage, investment, innovation, savings and other banks). The list of operations performed is determined by the license.

8. Based on the presence of a branch network, banks are distinguished between banks with branches and without branches. For example, in the Russian Federation at the end of 2008 there were 809 branches of Sberbank of Russia - a very extensive branch network.

Despite the existing different types of commercial banks, they all have bodies that manage their activities.

The work was added to the site website: 2015-10-28

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MINISTRY OF EDUCATION AND SCIENCE OF THE RF

Zelenodolsk Institute of Mechanical Engineering and information technologies(branch) KSTU named after. A.N. Tupolev

Institute of Engineering and Economics
UDC 330
TEST

discipline: Economic theory

Topic: ADVANTAGES, DISADVANTAGES OF MONETARY POLICY

Zelenodolsk 2011

1. Credit policy: its goals and principles.. 4

2. Credit policy instruments. 7

3. Problems of implementing credit policy. 10

Conclusion . 12

List of sources used. 14
INTRODUCTION

"Monetary policy" Monetary policy ) is a set of interrelated measures taken by the Central Bank in order to regulate aggregate demand through a planned impact on the state of credit and money circulation.

The Central Bank plays a key role and occupies a monopoly position not only in the field of issuing banknotes, but also in the field of conducting state monetary policy, which is designed for short-term periods and is carried out by indirect methods. The objectives of monetary policy are: to regulate the pace economic growth; mitigation of cyclical fluctuations in the market of goods, capital and labor; curbing inflation; achieving a balanced balance of payments.

By issuing and lending to the economy, banks perform a useful and necessary role for the development of the country. Monetary instruments serve the economic turnover, and they can be compared with vehicles. The latter make it possible to deliver goods, industrial products and Agriculture to the place of their processing or consumption; similarly, monetary instruments ensure the circulation of various goods, their transfer from one owner to another, facilitating their processing or consumption. However, excessive or uncontrolled emission of money can lead to dangerous and even destructive consequences. When bank lending exceeds a certain limit, it no longer stimulates production, but generates excess purchasing power, the consequence of which is an increase in prices.

When money circulation was carried out in accordance with the metallic concept, the available volume of gold reserves limited the issue of means of payment. The evolution of money in the spirit of a nominalistic concept has led to the need for deliberate and coordinated actions in the field of not only bank lending, but also public finances and foreign trade in order to maintain monetary balance. Regarding the credit sector, government bodies designed to control and regulate the issue of money in accordance with the objectives of monetary policy; To do this, they entrust various institutions with monitoring and regulating credit operations, facilitating the application of appropriate enforcement measures. In this sense, credit policy is an integral part of monetary policy; its two other components are fiscal policy and international financial relations policy.

This work will examine the principles and goals of credit policy, its instruments and problems of its implementation, and will also provide examples of Russia and other countries.

1. LENDING POLICY: ITS GOALS AND PRINCIPLES

In the process of economic regulation, the state widely uses monetary measures. Like the financial mechanism, they are considered in two ways. On the one hand, these measures are an integral part of the whole complex economic policy, on the other hand, credit regulation acts as a kind of instrument of government intervention in the economy.

“In its content, credit policy is a set of activities of the central bank in the field of money circulation and credit to influence the macroeconomic process.” The purpose of these measures is “a partial refraction of the general state line to ensure balanced and sustainable development of the economy.”

The following goals are distinguished:

1. Economic goals.

After a long period of economic growth and full employment, the government's economic goals are more defensive in nature and aimed at maintaining economic activity and reducing unemployment.

The desire to maintain and, if possible, increase production, as well as maintain the achieved standard of living, corresponds to modern tasks. This “involves large investments in the refurbishment of industrial and agricultural enterprises and the creation production structures“to reduce the country’s dependence in the energy sector, increase labor productivity in enterprises, meet the needs of the population as a whole, as well as provide training for specialists (engineers, technicians) and develop scientific and technical research.” This also requires significant working capital, necessary, for example, to issue wages, for the purchase of raw materials and energy.

The need to subordinate the issue of means of payment to economic goals poses the problem of consistency of all measures taken by government bodies. Therefore, credit policy should be an integral part of general economic policy. In this regard, two phenomena currently observed in developed countries ah: firstly, there is significant government intervention in economic activity, secondly, the implementation of the nominalistic concept of money, which made it possible to remove the restrictions on the issue of means of payment inherent in the gold standard.

Loans should be directed primarily to those sectors of the economy whose dynamism seems most necessary for the harmonious development of the economy as a whole.

The full employment policy corresponds primarily to human interests, but its object also includes industrial equipment, technical resources, and potential economic opportunities.

Full employment means no mass unemployment: it represents a situation in which able-bodied members of society can find, without much difficulty and in a fairly short period of time, a job that matches their abilities. Nevertheless, the absence of permanent unemployment does not exclude the possibility of temporary unemployment, since economic development presupposes a certain minimum of staff turnover. A change of position, a transition from one sector of the economy to another or from one enterprise to another may be accompanied by temporary loss of work, which is tolerable if it does not last long. Bank lending should facilitate such mobility.

2. Monetary objectives of credit control.

The goal of government agencies in the field of monetary policy can be formulated briefly: economic growth without inflation. It is important that resources used for economic development are insured against losses; in particular, lending to increase wealth should not entail higher prices or depletion of foreign exchange resources. Here the restraining role of the internal and external aspects of credit policy is manifested.

Stability of domestic prices is necessary for the normal functioning of the economy. A general decline in prices would entail a slowdown in production and thereby hamper economic development; however, this possibility should not be considered as it cannot currently be realized. A general increase in prices is fraught with well-known social and economic dangers; it not only undermines or weakens the desire to accumulate money and makes efforts made ineffective, leading to the unjustified enrichment of some sections of the population, it also worsens the conditions for investment and reduces their profitability.

Nevertheless, stabilization cannot be absolute and does not exclude changes in the price ratio. In certain cases, changes can and should be allowed in order, for example, to create favorable conditions for adapting production to consumer demand or to technical innovations. This flexible policy, however desirable, may lead to lower prices and even lower wages; it is therefore likely to provoke violent resistance, which makes it difficult for government agencies to carry out their tasks in this area.

For the normal functioning of the economy, stability in international financial relations is also required, which allows maintaining foreign exchange reserves at a satisfactory level. Such stability makes it possible to fight unemployment and maintain high level life of the population, since the regularity of imports of raw materials and energy resources necessary for National economy. This problem is related to the problem of prices; credit policy should help resolve both problems.

3. Coordination of economic and monetary policy goals.

If we trace the evolution of the monetary system over the past forty years, we will be forced to state that the energetic measures that some governments took to stabilize the monetary system were not always effective. Sometimes such monetary policy caused a slowdown economic development, in particular in Great Britain after two world wars, repeatedly in Belgium in 1948-1959, in France in 1930-1936, and in recent years sometimes for a short time. In other cases, economic growth was accompanied by depreciation of money; in Great Britain and France this phenomenon was repeatedly observed after the Second World War.

Nevertheless, significant progress has been made in this area in recent years, and most Western countries have demonstrated, to one degree or another, a solution to the problem of economic growth without excessive inflationary pressures. The difficulties are due to the fact that the factors that cause inflation are more powerful than the factors that stabilize money. The danger of inflation seems abstract and distant; the need to prevent it is hardly recognized due to people's attachment to nominal incomes and their desire to avoid immediate sacrifices. The global and almost natural tendency of economic agents to cause inflationary tensions forces government and financial authorities to resort to coercive measures in the interests of the whole society.

When assessing the effectiveness of measures taken in the credit sector, it must be remembered that they only complement the economic, financial and social policies of the government. Although credit policy, even well thought out and effectively implemented, does not always make it possible to anticipate and completely avoid inflationary tensions, it should at least mitigate the effects of inflation, prevent abuses associated with the accumulation of foreign currency, the creation of inventories for speculative purposes, and generally prevent the danger excessive excess of money.

However, although credit policy plays an important role in the dual purpose of ensuring economic growth and the stability of the monetary system, its essence can only be properly understood with a proper analysis of the role of banks in modern economy, primarily their functions of simulating means of payment. In this case, the provision of loans should be carried out in the interests of the whole society; therefore, there is a need for legal strict regulation of the activities of banks.

The subject of credit policy is the central bank (CB). According to the law, it fulfills the goals of the government, but at the same time it is not a government institution. The Central Bank has a certain degree of independence. Such rights are given to him on the basis of the principle of separation of powers. As the experience of Western countries shows, this institution, which has relative independence, is not a simple executor of the will of the state. In a difficult economic situation, the government cannot require the credit center to solve its problems. financial problems by issuing additional money supply.

The implementation of the set of tasks facing the central bank in the implementation of economic policy takes place in two directions. First - provision national economy a complete currency system. A stable currency is a critical element of market infrastructure. The second direction is due to the fact that the central bank is prescribed the function of influencing lending activities private business (commercial) banks in the interests of macroeconomic policy.

In the sphere of monetary circulation, the state pursues its policy using cooperation with this regulatory partner. A kind of partnership is formed: “the state - the central bank.” Practice shows the high efficiency of this cooperation.

It should be noted that in the production sector the state does not have such a powerful lever of influence. The manufacturing sector should be characterized as much as possible high degree freedom and independence, which the market nature itself requires. Within the production sphere, the state focuses on indirect ways of influence - through the monetary circulation system, which is a kind of circulatory system of the economy.

This indirect version of regulatory influence on the manufacturing sector is built on trade-offs. There is no direct interference in the plans of entrepreneurs. At the same time, indirect methods create the prerequisites for the entrepreneur himself to strive to act in accordance with the goals of economic policy. However, externally, the state plan will be implemented through the adoption of independent decisions by business circles. Thus, “indirect methods of regulation are manifested in a combination of elements of freedom necessary for the market with soft, but subtly calculated and persistent actions of the state.” All this is possible only thanks to the use by the government of such a powerful regulatory lever as the Central Bank.

2. CREDIT POLICY INSTRUMENTS

Working in the field of monetary circulation, the Central Bank uses various instruments. Most of them have an indirect impact. However, some operations of the credit center can be carried out directly (a similar example is government subsidies).

Scheme 1. Structure of credit policy measures

CREDIT POLICY

Direct methods

Indirect methods

Limiting lending dynamics

· · Open market operations · Minimum reserve policy · Voluntary agreements

Limitations on lending dynamics.

This option of measures is that in some countries (England, France, Switzerland, the Netherlands) the Central Bank has the right to limit the degree of growth of credit investments of business banks in the non-banking sector. For this purpose, a percentage rate for expanding credit operations over a certain period of time is introduced. If the conditions are not met, the Central Bank applies sanctions: banks may be required to pay penalty interest or “(as is customary in Switzerland) transfer to an interest-free account of the Central Bank an amount equal to the amount of the excess loan.

The above methods of regulation have disadvantages: they weaken the role of competition. The dynamics of banks that are gaining momentum and seeking significant expansion are limited. The capabilities of individual banks obtained through competition do not give them advantages. The Central Bank conducts its operation as if “one size fits all.” In addition, this tool is not very flexible. The level of interest rates regulated by the Central Bank does not always keep pace with the rapid increase in demand for loans.

In general, direct methods that are inconsistent with market economy nature, are used, as a rule, only if indirect methods are no longer able to play their role. But it should be recognized that the result of direct impact can be quite high.

Accounting (discount) policy .

This type of operation is one of the long-used regulatory methods. The Central Bank acts as a creditor in relation to business banks. Funds are provided subject to rediscounting of bank bills and secured by their securities. Such funds received in the central credit link are called rediscount or pawn loans. The Central Bank has the right to manipulate the interest rate at which it issues loans to banks. The possibility of establishing the “price” of a loan acts as a method of influencing the credit system.

The level of “credit price” determined by the central bank received economics and practice, the designation of the official “discount rate” (which is also called the discount or pawnshop rate).

Loans taken from the Central Bank are provided by banks to other economic entities, but for more high percentage. Naturally, the interest rate policy of business banks reflects the changes that the Central Bank makes in the course of its policy. With the help of the interest rate, the Central Bank thereby has an indirect impact on the relationship between supply and demand in the capital market.

Increase in interest rate, i.e. “rise in price” of credit limits the size of demand for borrowed resources and reduces firms’ intentions to increase investment. A reduction in the rate “cheaps” the loan, as a result of which the private sector (households, firms) increases the desire to invest. This incentive is implemented in the form of the purchase of shares, production equipment or the construction of new production buildings. This is the diagram of this mechanism. In real life, the interaction of parameters is, of course, not always so simple.

The function of accounting policy is important, such as manipulation of the interest rate, which enhances the effect of the application of other regulatory measures of the Central Bank, namely open market operations and the establishment of required reserve standards. If the effect of one influencing lever on the behavior of an independent commercial bank turns out to be insufficient, then the totality of measures taken by the central bank gives it the opportunity to achieve its plan.

In relation to Russia, it should be noted that, as part of its accounting policy, the Central Bank began to practice in 1995 also a pawn loan, carried out on the security of securities (mainly government treasury bonds).

Open market operations.

By resorting to this type of regulation, the Central Bank purchases and sells securities on the open market (for example, on the stock exchange). By selling them, the bank essentially withdraws the excess balance sheet reserves of commercial banks. In macroeconomic terms, this means the withdrawal of a certain amount of money from circulation. The purchase of securities by the central bank contributes to the formation of additional balance sheet reserves by commercial banks. The money supply in circulation increases. As a result, the opportunities for credit operations of business banks are expanding.

These measures make the Central Bank an active participant in the money and credit markets. In the process of carrying out the accounting policy, the position of the Central Bank remains, in a certain sense, passive (decisions on whether to discount their bills, or whether to receive a loan against the security of their securities from the Central Bank are made by commercial banks themselves). In addition, open market operations are fully consistent with market rules. When acting on the securities market, the Central Bank plays the role of the same counterparty as its other participants. Therefore, this method of regulation is considered to be an ideal credit instrument.

Minimum reserve policy.

According to the rules established in the world, minimum reserves are kept in the Central Bank in the form of permanent deposits. Upper limit they don't exist. These funds are not frozen. They can be used by different banks for a long time, but at the same time, the Central Bank must retain at its disposal a certain amount of the so-called minimum reserve necessary for the operation of a business bank for a certain period (usually one month). If the bank does not comply with this requirement, it pays penalty interest.

The required reserve ratio is calculated as the ratio of its amount to the current liabilities of a business bank. For example: the reserve ratio is 20%. This means that a business bank that has term liabilities in the amount of $1 million must have a reserve in the Central Bank in the amount of $200 thousand. If next month the current liabilities rise to two million dollars, then the commercial bank must increase its reserve at the central bank to $400 thousand. (The reserve rate in Russia was increased in 1992 and amounted to 15-20% in 1997, depending on the type of deposit.)

The reservation policy is a relatively “crude” method and, when used in isolation from other means, creates a certain rigidity in economic regulation. In comparison, open market operations and accounting policy are considered fine control methods. In order to soften the effect of reserve policy, the Central Bank tries to complement these measures and make changes to the reserve ratio relatively rarely.

Voluntary agreements .

The set of regulatory measures of the central bank is complemented by a system of so-called voluntary agreements concluded between the Central Bank and business banks. Such agreements are especially convenient in cases where the Central Bank must make operational decisions, act quickly and without much bureaucracy.

Based on agreements, banks show voluntary readiness to limit their activities. For example, they undertake to expand credit operations only up to a certain limit. The Central Bank undertakes to inform the business sector about trends in the monetary and foreign exchange sphere. This equips you with knowledge and understanding of possible unfavorable Processes in the monetary area. We are talking about a kind of gentlemen's cooperation. Its success depends to a certain extent on the ability of the Central Bank to use “soft pressure” on business banks to encourage them to comply with the terms of the voluntary agreement.

3. PROBLEMS OF IMPLEMENTATION OF CREDIT POLICY

The greatest effectiveness of the central bank's regulatory action is manifested when the entire set of economic instruments is used, and in an appropriate sequence. It is necessary to take into account that the capabilities of central banks in different countries are not the same due to various reasons. For example, German federal bank uses more diverse methods compared to National Bank Switzerland. The actions of the Russian Central Bank are also limited for now. Only two operations are practiced: the policy of discount rates and the policy of minimum reserves. In this regard, the effect of the chosen sequence of actions of the Central Bank is limited to a small number of options and depends largely on the specific specifics of the circumstances.

Carrying out credit regulation objectively complicated by two circumstances.

First, a difficult problem is the assessment of the state of economic development itself (which is necessary for the central bank to take the most rational measures).

Secondly, regulation within the national economy becomes more complicated due to the influence of foreign economic processes. The result is that the target orientation of the measures taken may be distorted.

For example, pursuing a restrictive (restrictive, restraining) policy using high stakes percent, the Central Bank can thereby attract the flow of foreign capital into the country. If the original goal was to limit investment activity, then due to the influx of foreign capital, the degree of this activity may not decrease, but increase.

When carrying out regulation, the Central Bank must take into account not only the relationships within the global economy, but also the interdependence of parts of the national economy. Let us note the following problematic cases.

1. Accounting policies affect not only banks, but also other sectors of the economy. The negative impact of interest rate fluctuations manifests itself in relation to those areas of the national economy that are burdened with debt. These include: the public sector, capital-intensive industries (nuclear power plants, hydroelectric power stations), railway transport, households, and farming.

2. Interest rate policy leads to a growing price effect. Economic entities strive to escape the influence of the growing discount rate by shifting their costs onto the shoulders of clients (increasing the price of their goods accordingly). As a result, an additional difficulty is created for the state policy in the field of containing inflation.

Within Russian economy, which is currently experiencing significant problems with inflation, this side effect is especially painful. The private sector seeks to pass on to the buyer any additional burden that is imposed on it as a result of regulatory measures. The possibility of such financial resourcefulness in Russia is higher, since the degree of market saturation and competition is weaker than is the case in developed Western countries.

3. An administrative prescription of a percentage level “from above” is not a market-oriented action. The weakening of the market mechanism leads to undesirable consequences. For example, the result may be the strengthening of elements of the shadow economy.

In Russian conditions, the system of restrictions and regulations is large not only regarding the interest rate, but also in the area of ​​issuing licenses for credit operations. There are currently quite a lot of commercial banks operating in the country. However, a system of private, non-bank lending, outside the direct control of the state, has become noticeably widespread. This is an element of the shadow economy. Small businessmen use, for example, this type of loan (which does not have an institutional form) to organize foreign business trips and conduct purchasing and sales operations. Rates of this loan extremely high, but obtaining such funds does not require the formalities that entrepreneurs face when relying on the resources of commercial banks.

· The central bank's influence on the economy through interest rate policy has its limitations, since business banks and large firms very often move their operations abroad in order to take advantage of the interest rate advantages available there.
CONCLUSION

Monetary policy plays a large role in government policy. One of the most important ministries of the state is the Ministry of Finance, which conducts monetary policy in accordance with the tasks and goals of the development of the state and society. It is not surprising that the Ministry of Finance controls quite a lot of different structures, for example, such as the Central Bank. A lot of bodies (ministries, departments, committees, departments) pursue state policy in various areas directly or indirectly related to the economy.

From the point of view of economics and monetary circulation, credit control is intended to orient the issue of money to achieve the economic and financial objectives of the government; in general, government bodies are called upon to ensure the distribution of loans in favor of individuals, enterprises and, if necessary, the state in such a volume, at such a percentage and for such periods that are most consistent with the interests of society.

IN market system The state is not a magical source of funds, but only a mechanism designed to ensure that some citizens (with higher income) pay - through taxes - to others (with lower income). In the new conditions, the main factors of an individual’s well-being are his initiative, the desire for personal activity, and the willingness to choose economic solutions himself.

LIST OF SOURCES USED

1. State and municipal government: reference book. – M.: “Magister Publishing House”, 1997.

2. Sokolinsky V.M. State and economy. – M.: Finance and Statistics, 1997.

3. Berger P. Monetary mechanism. – M.: Progress, 1993.

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Bank loans are one of the most popular and widespread types of borrowed resources. They are used not only by ordinary citizens, but also by enterprises to support their financial activities. Advantages bank loan different, but at the same time borrowed money there are significant shortcomings.

U bank loan there are advantages and disadvantages. However, they depend on the type of loan that the citizen or organization receives. Much depends on the favorable conditions at the particular moment under which the loan is taken out.

Before taking out a loan, you need to familiarize yourself with all the advantages and disadvantages

Among the main advantages of bank lending are:

• a small list of documentation required by the bank (especially for consumer lending);
• the possibility of obtaining at any time and for any purpose, if the loan is not targeted;
• admissibility of issuance to various business transactions, as well as for investment purposes;
• a wide variety of types of loans issued with the possibility of receiving money for both short and long periods;
• accessibility for different segments of the population;
• the existence of a non-cash lending system, in which it is possible to make payments through electronic transfers;
• the possibility of repaying the loan ahead of schedule, if there is an agreement on this with the bank;
• the price of the loan is an integral part of the production costs of organizations, due to which they have the opportunity to reduce taxable profit;
• lending conditions allow citizens and organizations to competently plan their budget, which creates control over cash flow.

The main advantage of a bank loan is that a citizen can immediately realize his need for something. This applies to the purchase of real estate, a car or a vacation trip. Credit is a more attractive alternative to simply saving money.

Paradoxically, loans are less dependent on inflation. It negatively affects the population's ability to save money, but at the same time makes it easier to repay the loan. Inflation, although indirectly, serves as a positive factor when a citizen chooses a bank loan.

A loan from a bank has one undeniable advantage over another possible alternative option- leasing. The essence of leasing is the financial lease by the lessee of an object owned by the lessor. After receiving a loan from a bank, a citizen or organization acquires property and becomes its owner, and not a tenant, as is the case with leasing. But at the same time, the loan creates certain encumbrances for property owners in the form of the need to repay the debt.

Disadvantages of loans

Bank loans have whole line disadvantages, including:

• inflated interest rates;
• the presence of a system of guarantees and pledges that burden not only the borrower himself, but also third parties;
• the need to use money only for certain purposes if the loan is targeted;
• the need for the borrower to pay commissions to the bank when repaying the loan ahead of schedule in a number of cases;
• the action of the bureaucratic system when citizens and organizations receive loans;
• the presence of a strict schedule for repayment of the loan amount and interest on it;
• strict requirements for recipients, detailed verification of their solvency;
• availability of additional paid services bank, about which the borrower may not be warned in a timely manner;
• high risk of fraud when receiving funds, especially when applying for a long-term bank loan.

A loan helps you not to waste time saving money, but to get what you want in a short time

There are three main disadvantages to any type of bank loan. The first of them is the urgency of debt repayment, the second is the fee for the service of lending money itself, the third is repayment, which imposes a burden on borrowers.

Loans taken in foreign currency. If the exchange rate of the currency in which the loan was taken fluctuates, the amount of debt and interest on it may increase multiple times.

Particularly burdensome for borrowers is the requirement of many banks to require collateral. when granting a loan. The collateral serves as a security measure and guarantee for the payment of the entire amount of the debt and interest. Collateral has a whole list of risks for borrowers for the following reasons:

• the collateral property is included in a special register that prohibits the owner from disposing of it in full without the approval of the bank;
• The collateral property is insured by the borrower at the request of the bank; in addition, the borrower himself is subject to insurance, which increases his additional expenses;
• If the borrower is insolvent, his property, which is pledged, can be sold to other persons through the court, which ultimately means the loss of ownership rights.

When paying off a debt, citizens and organizations significantly overpay, which is beneficial for the creditor. In addition to the principal debt, they pay interest, the amount of which is initially inflated by the bank. In some cases, banks charge borrowers a fee for maintaining a loan business and for individual payments to repay the debt.

Overpayments on loans issued by banks often exceed the cost of the loan itself.

Advantages and disadvantages of lending to enterprises

Lending to enterprises has the following advantages for them:

• free choice of lending scheme;
• little time spent on raising money;
• confidentiality of the transaction and minimal risk of disclosure of its data to other organizations;
• the effect of flexible conditions when banks provide loans;
• no taxation of borrowed funds received by the organization.

Most often, banks value their clients and are ready to make concessions to regular borrowers in the form preferential terms lending. The process of attracting a loan takes 14-60 days. Moreover, the specified period is much shorter than the period required for organizations to issue shares or find a reliable investor.

Among the shortcomings, it is worth noting the high overpayment for a loan

Among the disadvantages of a bank loan are:

• violation financial stability organizations because of the loan received;
• mandatory collateral equal to the amount of the requested loan;
• high probability of refusal in extradition;
• difficulty in obtaining money for a long period of time due to the strict policies of the Central Bank;
• high lending rates.

In every sense, it is more profitable for organizations to build a business on own funds, since borrowed funds always need to be repaid, paying high interest. But borrowed bank funds are the only way for the normal functioning of most established organizations.

Loans make up about 10-50% of the total amount of all funds that organizations and citizens take out as loans. The negative aspects associated with lending are mitigated by the ability for citizens and organizations to quickly resolve their financial problems. With proper planning of the payment schedule, as well as calculating the rate of return, using a loan can be beneficial for the borrower.

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37. And

38.Com banks. Essence, function, types.

The history of the rise of the SNS.

SNA-a way to organize information about households. actions performed by macroec. subjects. Purpose: to provide extensive information about the origin, distribution and national product. SNA was developed in the 20s of the 20th century. group of Americans scientists under the leadership of S. Kuznets. The reason arose: the need for macroeconomic information for the development of economic policies, programs and measures to regulate the market economy. The first SNA was created for Polestina in 1936. Date of birth -I SNS-1952. The basis of the SNA consists of consolidated accounts of GDP, CV, income and expenses of households and government institutions, foreign transactions, balance sheets. Principles: 1. double entry - each operation is reflected twice. 2. sequences (production of income, distribution of income, use of income). 3. Balance sheet (registration of all economic flows in the form of balance sheets). 4. settlement categories (balancing items are calculation categories not only to ensure a balance between the volumes of resources and their use, but also to characterize the output of the process. 5. “T” forms: all accounts consist of 2 sections.

Structure of SNA. Main types of SNA.

composed of

Demand for money

Demand for money MV = PQ, where M is the amount of money in circulation, V is the speed of circulation of money, P is the level of prices in society, Q is the real V national production. According to the equation, the quantity of money in circulation is directly proportional to the price level. The quantitative equation can be interpreted as the equation of demand for money. portfolio theory Friedman's theory

Advantages and disadvantages of monetary policy.

Keynesian theory ( 3 motivesBaumol-Tobin model:

The concept of transfer e-ki.

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Read also:

Introduction………………………………………………………………………………………………………………….

Advantages and disadvantages of monetary policy

Chapter I. Credit policy of the bank……………………………………………………….. 5

1.1 Essence and types of credit operations…………………………………………………………………………………. 5

1.2. The need for management credit operations……………………………………. 9

1.3. Stages of lending………………………………………………………………………………… 16

Chapter II. Analysis of the effectiveness of management of credit operations of a commercial bank (using the example of AB Capital)……………………………………. 32

2.1. Efficiency of loan operations management……………………………………… 32

2.2. The influence of interest rate policy on the profitability of credit operations……………. 38

2.3. Analysis of the client’s creditworthiness…………………………………………………………….. 53

Chapter III. Credit operations management……………………………….. 60

3.1. Forms and methods of managing credit operations of commercial banks 60

3.2. Credit risk management……………………………………………………………………………… 73

Conclusion…………………………………………………………………………………………………………. 82

Bibliography…………………………………………………………………………………………. 85

Applications…………………………………………………………………………………………………………. 88

Introduction

Lending to production and trade turnover is the most important and distinctive feature of the activities of banks in comparison with other financial and non-financial organizations. But at the same time, in Russia for a long time the approach to lending to business activities was purely formal. This was also manifested in the fact that both the funds of banks and the funds of enterprises were the property of the state (if you look at the essence this definition, then everything in the country “belonged to the people,” and the state “looked after” this property, that is, the property was practically no one’s), and therefore the bank (at that time the State Bank of the USSR) could not pursue a full-fledged credit policy. Therefore, with increasing competition for potential borrowers, Russian commercial banks faced the need to plan their lending activities. They must learn to manage credit operations in such a way that they generate the highest possible profitability, but at the same time banks must strive to reduce credit risks that are directly related to credit operations.

Therefore, the purpose of this work was to study all aspects of credit operations management and analyze the effectiveness of credit operations of a commercial bank.

To achieve this goal, the following tasks were solved:

— determination of the essence and characteristics of types of credit operations;

— consideration of the feasibility of managing credit operations;

— assessing the effectiveness of various methods of managing credit operations;

— carrying out an analysis of the management of credit operations using the example of a specific commercial bank;

— consideration of risks associated with lending to enterprises and methods of reducing their impact on the bank’s lending activities;

The work uses theoretical, methodological works and developments of domestic and foreign authors on this problem, such as P. S. Rose, E. P. Suskaya, V. M. Usoskin, M. A. Pomorina, O. I. Lavrushin, etc. ., regulatory and reference material, periodicals, as well as officially published reporting data of AB Capital for 1995-1996.

Chapter I. Bank credit policy

1.1 Essence and types of credit operations

In Soviet economic literature, credit was understood as the movement of loan (i.e., money) capital provided on loan on the terms of repayment for a fee in the form of interest. This definition was based on the fact that capital is only alienated under the condition that it is not sold, but only given on loan. In general, credit literally means the disposal of a certain amount of money for a certain period of time, i.e. those who have excess funds can lend them to those who lack or need additional amounts.

The role and importance of credit are very great, since with its help the problems facing the entire economic system. Thus, with the help of a loan, it is possible to overcome the difficulties associated with the release of temporarily vacant land in one area. cash, and on others there is a need for them. The loan accumulates the released capital, thereby servicing the influx of capital, which ensures the normal reproduction process. Credit also speeds up the process of money circulation, ensures the implementation of a number of relationships: insurance, investment, and plays a big role in regulating market relations.

The sources of loan capital are, firstly, funds released from the circulation: funds intended for the restoration of fixed capital (i.e., depreciation fund); part of the working capital released in cash due to the discrepancy between the timing of the sale of goods and the purchase of raw materials, fuel, materials; capital that is temporarily free during the period between the receipt of funds from the sale of goods and the payment of wages.

Another source of loan capital is cash income and savings of the personal sector. It should be noted that, starting from the 50-60s of our century, there has been a tendency to increase the attraction of cash savings from the population. This was facilitated, first of all, by the improvement in the socio-economic situation of developed countries and changes in consumption patterns.

The third source of loan capital is the state’s monetary savings, the size of which is determined by the scale state property and share of the gross national product.

Thus, we can conclude that temporarily free funds arising from the circulation of industrial and commercial capital, monetary savings of the personal sector and the state form sources of loan capital that are accumulated within financial institutions.

The price of loan capital is interest. Unlike the price of ordinary goods and services, which represent a monetary expression of value, interest is payment for the use value of loan capital. The source of interest is the income received from the use of the loan.

A more accurate picture of the cost of a loan is provided by the interest rate, or interest rate. The interest rate is the ratio of the annual income received on loan capital to the amount of the loan granted, multiplied by 100. The interest rate depends on profit, which is divided into interest and business income. Interest cannot be greater than the rate of profit, since the price of loan capital does not express its value, its changes are not governed by the law of value.

The interest rate depends on the relationship between supply and demand, which are determined by many factors. Among them: scale of production; the size of cash accumulations and savings of the entire society; the relationship between the size of loans provided by the state and its debt; inflation rates; market conditions; government regulation of interest rates; competition between banks, etc.

In connection with the above, we can conclude that changes in the interest rate are associated with the market mechanism and also depend on government regulation.

Loan interest performs two functions: the redistribution of part of the profits of enterprises or income of the personal sector and the regulation of production through the rational allocation of loan capital.

The dynamics of credit during cyclical fluctuations are interesting. Loan capital mainly serves the circulation of functioning capital; the patterns of its movement are determined by cyclical fluctuations in production. During the period of revival of industrial growth, the increase in the volume of loan capital lags behind the expansion of production and trade turnover, the demand for loan capital and the interest rate increase. During crises, a reduction in production and an excess of real capital is combined with an acute shortage of loan capital and a sharp increase in the interest rate. During a period of depression, when part of the productive capital takes the form of money, the accumulation of loan capital outstrips the accumulation of real capital, and average profit and the rate of interest decrease.

Occupies a special place in modern conditions commercial loan- supply of goods by one company to another on deferred payment terms, as well as leasing - rental of machinery, equipment, transport by an enterprise with debt repayment over several years.

From the above we can conclude that the very concept of “credit” is changing; it can no longer be revealed by the previous definition as a form of movement of loan capital from the lender to the borrower. In modern conditions, a credit transaction can be called any economic or financial transaction that leads to the incurrence of debt by one of the participants. The debt is repaid by the debtor in cash at one time or in installments, and in the total amount of payment, in addition to the debt, an additional charge in the form of interest is included.

Credit as an economic category is distinguished from all other forms of provision of funds (subsidies, subventions, subsidies, etc.) by three fundamental principles - urgency, repayment and payment.

In this case, urgency means pre-agreed terms for the repayment of borrowed funds to the lender; under repayment - obligatory payment to the creditor of the principal amount on the agreed terms. Payment means that in a given economic transaction, money represents a specific product and, based on the law of value, its price is expressed as a percentage.

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The advantages of monetary policy include the following: No crowding out effect. Multiplier effect. Credit policy has a multiplier effect on the economy. Lack of internal lag. Internal lag is a period of time between the moment of awareness of the situation in the country and the moment of taking measures to improve it. High probability of inflation. It should be noted that only stimulating monetary policy leads to inflation. Conflicting objectives of monetary policy. The presence of external lag due to the complexity and possible failures in the transmission mechanism. The presence of side effects caused by changes in the supply of money also reduces the effectiveness of monetary policy. Loss of control by the Central Bank over the supply of money in conditions of dependence of the government's monetary policy on fiscal policy.

37. Measuring den mass. Den aggregate. The most important indicator of the currency of circulation is the currency mass, which is the total volume of purchased and payment assets that serve household turnover and belong to individuals, enterprises and the state. To analyze the number of changes in the currency of circulation on a defined date and for a defined period; to develop measures to regulate the growth rate and volume of money mass, various indicators - money aggregates are used. Money aggregate is any of several specific groupings of liquid assets that serve as alternative measures of money mass. Money aggregates are types of money and money averages, differing from each other in the degree of liquidity. Money aggregates are indicators of the structure of money mass. The composition of money aggregates varies by country. The most commonly used units are: - MO - cash; - M1 - cash, checks, deposits on demand; - M2 - cash, checks, demand deposits and small time deposits; - MZ - cash, checks, deposits; - L - cash, checks, deposits, securities. In international statistics, deposit money is taken into account in monetary terms, in addition to cash. The IMF calculates a common M1 indicator for all countries and a broader indicator of “quasi-money” (terms and savings bank accounts And the most liquid financial instruments traded on the market).

38.Com banks. Essence, function, types.

Com Bank is a credit institution that organizes the movement of loan capital and regulates payment turnover in order to make a profit. CB belongs to a special category of business enterprises, called financial intermediaries. They attract capital, savings of the population, etc., released in the process of economic activity, and provide them for temporary use to other agents who need additional capital. Banks create new requirements and obligations, which become a commodity on the money market. Thus, by accepting customer deposits, the bank creates a new deposit obligation, and by issuing a loan, a new requirement for the borrower. This process of creating new obligations This is the essence of financial intermediation. This transformation allows us to overcome the difficulties of direct contact between savers and borrowers that arise due to the discrepancy between the proposed and required amounts, their terms, and profitability. The main operations of the bank include: accepting deposits; making payments and settlements; issuing loans. The main functions of the CB are: 1attracting temporarily free funds; 2providing loans; 3making settlements and payments in the household; 4issuing credit funds; 5consulting and providing economic and financial information.

Transactions of commercial banks that create money. Money multiplier

Bank transactions that create money include: the issuance of loans to bank clients; the purchase of government securities by the bank from the population. The destruction of a non-cash money offer is correspondingly associated with: 1) repayment of loans; 2) the sale of government securities to the population. The money multiplier is a number, cat shows how many times the total value of the supply of non-cash money is greater than the amount of excess reserves. The monetary multiplier is calculated as the ratio of the monetary mass to the monetary base.m = Ms / MB; Ms = m * MB, where m is the monetary multiplier; Ms- supply of money; MB - monetary base.

The history of the rise of the SNS.

SNA-a way to organize information about households. actions performed by macroec. subjects. Purpose: to provide extensive information about the origin, distribution and national product. SNA was developed in the 20s of the 20th century.

Advantages and Disadvantages of Monetary Policy

group of Americans scientists under the leadership of S. Kuznets. The reason arose: the need for macroeconomic information for the development of economic policies, programs and measures to regulate the market economy. The first SNA was created for Polestina in 1936. Date of birth -I SNS-1952. The basis of the SNA consists of consolidated accounts of GDP, CV, income and expenses of households and government institutions, foreign transactions, balance sheets. Principles: 1. double entry - each operation is reflected twice. 2. sequences (production of income, distribution of income, use of income). 3. Balance sheet (registration of all economic flows in the form of balance sheets). 4. settlement categories (balancing items are calculation categories not only to ensure a balance between the volumes of resources and their use, but also to characterize the output of the process. 5. “T” forms: all accounts consist of 2 sections.

Structure of SNA. Main types of SNA.

The national product is calculated using the SNA, which represents the relationship between economic development indicators at the macro level. The SNA is a way of streamlining the collection, description and linking with statistics of information about economic transactions carried out by economic entities in the process of general reproduction. The main purpose of use The SNA is a description of ME indicators that characterize the results and proportions of the economic development of the country to provide a comprehensive analysis of the process of creating a national product and national income. The SNA studies and records the process of creation, distribution and redistribution of the national product and national income in the country. A special feature of the SNA is its comprehensive nature. The SNA studies the transactions of multi-subs of national assets. Economic entities (agents) of national assets here include economic units that carry out economic transactions with materials or financial assets. Economy agents group in 6 sectors: 1) non-financial enterprises; 2) financial institutions and org-ii; 3) government institutions, provision of services; 4) private non-profit organizations; 5) household house; 6) abroad. Modern SNS composed of 3 interconnected blocks. The 1st allows you to compare investments and savings, give a quantitative assessment of the creation, distribution and final use of national income. The 2nd is intended to analyze the creation and distribution of the product by foreign industries. The 3rd block represents fund flow accounts and reflects the movement financial assets in the form of purchases and sales in the money market.

Demand for money

Demand for money– the total amount of money that households and entrepreneurs want to have at the moment. There are different concepts of demand for money. Quantitative theory money by I. Fisher: MV = PQ, where M is the amount of money in circulation, V is the speed of circulation of money, P is the level of prices in society, Q is the real V national production.

According to the equation, the quantity of money in circulation is directly proportional to the price level. The quantitative equation can be interpreted as the equation of demand for money. portfolio theory: Cambridge equation – M = kPQ. Coefficient k (liquidity indicator) is inversely proportional to the speed of circulation of money: the less cash, the greater the speed of circulation. Friedman's theory: money is one of the types of assets. He considered bonds, shares, durable goods, etc. as alternative assets. One of his models: MD = f(P, rb, ra, P/P, Yn/r), where MD is the planned demand for nominal cash balances, rb, ra are respectively the income on bonds and shares, P/P is the inflation rate, Yn/r is the total property. The demand for money is directly proportional to the income on bonds and shares and the total property, and is inversely proportional to the inflation rate. Keynesian theory (liquidity preference theory): the demand for money depends on how highly economic entities value the property of liquidity, and what proportion of their assets they prefer to have in the form of highly liquid money. Keynes highlights 3 motives factors that encourage people to keep part of their money in the form of cash: transaction motive (the need for cash for trade transactions); precautionary motive (the possibility of unexpected purchases and expenses); speculative motive (the intention to save some reserve in order to take advantage of better knowledge than the market of what the future will bring). Speculative demand for money is based on the inverse relationship between the international interest rate and the bond rate. According to Keynes, the demand for money is directly dependent on the level of national income and inversely dependent on the interest rate. Baumol-Tobin model: transactional model, which considers that money is stored econ. subjects only as a medium of payment. Formula: , where Pb-nominal costs. The demand for money is directly dependent on nominal income Y and inversely – from the level of the % rate i. All theories of demand for money identify 3 main factors that determine the amount of nominal demand for money: 1) it is directly dependent on the absolute level of prices; 2) directly proportional to the real volume of national production (income); 3) it is inversely dependent on ur% rate.

The concept of transfer e-ki.

Transformation (transitional) economy - economy of countries moving from a centrally controlled economic system to a system based on market principles. Transformation period-time, during the cat. society is implementing fundamental economic, political and social transformations, and the country's economy is moving into a new, qualitatively different state in connection with the reforms of the economic system. Features of TE: 1) represents an intersystem image, for cats. characteristic mixture, combination of condo-administration. system and modern market economy. 2) a special initial state preceding the transition process - planned economy. 3) instability of the state. 4) quantity and quality of changes in the structure. 5) at the initial stage of transformation, transformation is accompanied - social costs: decline in industry, inflation processes, decline in the standard of living of the population. 6) there is a qualitative change in systemic connections and relationships.