Open AccessMoney issue and money circulation: concept and essence
Author(s) -
I. M. Prots
Publication year - 2022
Publication title -
naukovij vìsnik užgorodsʹkogo nacìonalʹnogo unìversitetu. serìâ pravo
Language(s) - English
Resource type - Journals
eISSN - 2664-6153
pISSN - 2307-3322
DOI - 10.24144/2307-3322.2021.67.41
Subject(s) - circulation (fluid dynamics) , endogenous money , money measurement concept , cash , money supply , money market , electronic money , economics , finance , business , demand deposit , money creation , cash flow , financial system , velocity of money , monetary economics , monetary policy , interest rate , payment , central bank , physics , thermodynamics
The article is devoted to the research with the use of a comprehensive systematic analysis of the current state of money issuance and money circulation in Ukraine in the context of the implementation of the Association Agreement between Ukraine and the European Union. The current national financial legislation and the experience of formation of money issue and money circulation in the European Union are considered. It is noted that the issuance of money is an important element of the monetary system of the state. The monetary system is a certain model, type of organization of money issue and money circulation, which is enshrined in law, which exists only through the establishment of rules for the organization of money issue and circulation in mandatory regulations. Under the issuance of cash means the issuance of cash in order to increase the money supply in the economic circulation of the state. The reverse issue procedure is the withdrawal of money from circulation, which is aimed at stimulating the state's economy. It is stated that money circulation is an integral part of the financial system of the state, as the established mechanism of money circulation regulation is the foundation for the development of banking and investment activities in the state with foreign capital, optimization of financial services market, including insurance. The issue of money in circulation is constant. Non-cash money is issued when credit institutions lend to their customers. Cash is issued in cash when carrying out cash transactions by banks, which issue them to customers from their operating cash registers. Money circulation is a process of cash flow in cash and non-cash forms in the economic circulation of the state, based on certain principles, which are based on and follow from the provisions of the legislation of the country in order to effectively regulate the money supply. To implement the financial functions of the state in the field of formation, distribution and use of monetary funds requires an effective mechanism for organizing and regulating the circulation of money in cash and non-cash forms regulated at the legislative level.