53. Monetary Emission and Printing Money.Выпуск денег в хозяйственный оборот и денежная эмиссия.

Monetary emission is introducing to circulation cash- or non-cash money (or taking it back) by central and commercial banks.

Cash. In some countries, e.g. Russia, only CB is authorized to cash monetary emission: it introduces cash into circulation and controls the country's monetary base (currency in circulation). However, emission in Russia is decentralized and is also done through Settlement centers that serve regional banks. In others – like EU (group of countries) – ECB is not authorized to cash monetary emission, only to give licences (to others Cbs) for cash monetary emission.

Non-cash. If cash is the privilege of CB, non-cash emission can be done by anyone (given legal issues). But usually by non cash emission is referred to credit emission by commercial banks. These banks leave some money from deposits in reserves (according to reserve requirements) and lend out the rest, increasing non-cash money in circulation and Money supply in general. Other forms of non cash money: letter of credit, bill of exchange, banking guarantee.

However, CB and the government should control the level of both monetary emissions, by tracking banking multiplier in case of non-cash, or by imposing restrictions on credit emission or by controlling interest rates.  Because intensive credit action enlarges incomes and the credit ability only in the beginning, but then the discrepancy between the amount of real assets and the amount of money may lead to inflation or deflation.

The question of optimal quantity of money have been on the agenda for quite a long time. In according to one of the ideas, the total nominal value of money in circulation should equal the total value of accessible goods on market. The credit systems described above do not guarantee this. Alternative studies do not guarantee this either, but they deliver some pieces of advice. For example, the Austrian theory of money propose introduction of gold standard or annulment of state monopoly on production of money.

54. Modern Basics of Cash at Bank monetary Circulation: Russian Specifics. Современные основы организации безналичного денежного оборота: особенности России.

Non-cash money turnover - a movement of value (without any cash involvement) through fund transfers between the accounts of credit institutions (as a set-off of mutual claims).

Depending on the method of payment, type of settlement documents and workflow there are the following main forms of non-cash transactions between payers and recipients: letter of credit, bill of exchange, banking guarantee, etc.

The basis of non-cash transactions are interbank payments. According to the legal provision «Regulations on the organization of interbank settlements on the territory of the Russian Federation», non-cash payments between banks and other credit organizations are made through Settlement Centres (SC) of the Central Bank of the Russian Federation. For settlements each institution opens correspondent account in SC. Institutions are required to ensure the in-time-delivery of funds to their correspondent account (in the amount needed for the settlement transaction).

The prerogative of the Central Bank of the Russian Federation is the regulation and mediation of payments between banks and other financial institutions, which enables it to monitor the country's money turnover.

The fundamental principles of non-cash payments in the Russian Federation:

• Businesses of all types of ownership are required to keep their money in bank accounts. Enterprises are allowed to keep only small amounts of cash within the limit.

• Most non-cash transactions should be done through a bank.

• Invoice must be exhibited either before the shipping of goods or right after. However, in times of crisis pre-payments (in advance) grew popular. Sometimes they reach 100%.

• Payment for received goods by bank customer is carried out only with the consent of the legal or natural person the bank serves.

• The forms of non-cash settlements are chosen by the bank itself (within the spectrum allowed by CB of the RF).