That m 0. Money mass and its main units
Money mass and monetary aggregates - These are notions interrelated and interdependent.
Cash A combination of payment, purchasing and accumulated funds belonging to physical, as well as legal entities and actually to the state involved in the process of servicing economic ties. The money mass characterizes the movement of money on the quantitative indicator.
Under the mass of money, cash, and non-cash funds. According to the structure, it is divided into the active part (those cash that serve the economy) and the passive part (accumulation and balances in bank accounts, which are potential settlement funds).
The mass of money is not simple and does not coincide with cash. In fact, the share of cash in the mass of money is not so great, since all business entities make transactions based on bank accounts.
The level of development of the country determines the stability of the monetary circulation and the share of cash in the total mass of money. For example, in the US, this indicator does not exceed 5-10%, with the CIS countries - 30%. The greater the total mass of the country's money, the less flexible monetary system itself is. Money mass and monetary aggregates must be in the right relationship to ensure normal functioning.
As part of the mass of money, such components are allocated, which are directly impossible to use as payment and purchasing products. These are funds on urgent savings deposits, promotions, etc. They are called "quasi-money" (from Lat. "Almost"). This part of the money in the overall structure is a very significant and weighty part.
The structure of the mass of money and its composition constantly changing. At different stages of development of commercial exchange and payment relations, it was different. With the gold circulation at the beginning of the last century, the structure of the mass mask in developed countries was approximately the following: 40% was gold coins, 40% of banknotes, 10% of the balances in the accounts of various credit institutions. Immediately before the 1st World War, these indicators have changed respectively as follows: 15%, 22%, 67%.
To analyze the movement of money and changes in this process, for a certain period are used money mass and monetary aggregatesdifferent categories.
Monetary aggregates are indicators of the amount of money or financial assets, which consists of a lot of money.
The money supply and monetary aggregates in this sense are mutually intertwined. The so-called aggregates represent a stepped hierarchical structure in which each subsequent unit will include previous ones. Each subsequent indicator in this case includes less liquid assets. They are expressed by such concepts as monetary aggregates M1 M2 M3, M4, as well as M0.
Aggregate M0 -nalous money in circulation (coins, banknotes, treasury tickets).
The ML unit includes an M0 aggregate and funds on current accounts used for
The M2 unit includes ML and deposits in commercial banks, short-term government securities that can become cash or checking accounts.
The MH unit includes M2 and savings deposits in credit institutions, as well as cash market securities.
M4 aggregate includes M3 and deposits in credit institutions.
The monetary aggregates in Russia for calculating the money supply are applied to the following order: it is M0, ML, M2 and MH. For the money supply of Russia, a high proportion of cash is characterized, and this trend is not going to go to the decline. The monetary mass and monetary aggregates of Russia for more promising development of the monetary system should switch in the direction of greater use of non-cash settlements.
To date, the most famous component of money supply is cash. This concept unites both coins and banknotes, which, together, are only a small part of the means of circulation. Currently, their modern expression is presented by checking accounts (demand deposits). They are financially tangible.
The main reasons for storing money in cash
It is known that their four, in particular:
- the absolute liquidity of this type of means of circulation;
- the convenience of their use as payment facilities;
- reserve aspect in case of acute need for financial spending;
- fear of ineffective cash investment.
What are cash aggregates?
In a modern aspect, they consist of two major groups of liquid assets, protruding alternative meters of the entire money supply.
The M1 monetary aggregate is presented with cash and transaction deposits, more precisely, special deposits, funds on which are available for transferring to third-party persons as an electronic translation or a check payment. A significant number of exchange operations in countries with a developed market economy is carried out mainly through the above unit, where money acts as a direct means of circulation.
What is the second grouping of liquid assets measuring the money supply?
M2 monetary aggregate covers a wider range. In addition to its main function, money in this case also act as a means of accumulation. The monetary aggregate under consideration includes:
- deposit accounts;
- term deposits;
- savings deposit deposits, etc.
That is, these are assets having a fixed value of the nominal value and capable of transforming into a means of payment. At the same time, they are deprived of the possibility of translation by other persons and do not give their owner the right of payment by check. As for demand deposits, there is a slight income from interest. It is M1 that serves certain operations regarding the implementation of such an indicator as a gross domestic product, and also distributes and redistributes national income and much more.
The M2 monetary aggregate within the framework of financial markets of developed countries belongs to mutual funds of the money market, more precisely, investment companies producing their own shares and thus attracting cash, which are subsequently invested in various securities of industrial or other corporations. In general, this unit acts as a liquidized means of accumulation.
Savings deposits It is in commercial banks that can be removed in absolutely any time and transformed into cash. As for urgent deposits, they become available to the depositor exclusively at the end of a certain period. Thus, they are less liquid (in contrast to savings deposits).
M3 as a monetary mass meter
It is represented by less liquid assets, in particular, urgent re-release agreements, urgent loans in the titles of ownership of the mutual funds of the money market and in Eurodollara, as well as deposit certificates. It can be said that the M3 monetary unit complements M2 with significant urgent deposits (securities, certificates), easily transforming into checks.
What acts as the narrow monetary mass rate?
The monetary unit M0 is represented by cash participating in the process of circulation, namely:
- metal coins;
- banknotes;
- treasury tickets.
Metal coins provide the ability to make minor transactions. As a rule, they are mined from an inexpensive metal. Real value assessment is significantly different from the nominal value in favor of the latter. This is done in order to prevent the possibility of their smelting into the ingots in speculative purposes.
Treasury tickets are paper money, the release of which produces a treasury. They are used primarily in underdeveloped countries, for example in the Republic of Djibouti or the Kingdom of Tonga.
Banknotes occupy a leading position in circulation.
Monetary aggregates in Russia
As you know, the money within the framework of the modern economy are not only coins and banknotes representing cash flow, but also checks, bank deposits and other representatives of non-cash form.
Money mass and cash aggregates are interrelated concepts. The latter follows from the first. This chain is formed due to the fact that the money supply can be represented as a set of active and passive parts. The first is cash and non-cash funds that serve the country's economic turnover. The passive part acts as temporarily not used in the calculations.
The components of the money supply have distinctive features according to the criterion of the speed and ease of their transformation into cash. It is as a result of this distinction that the relevant monetary groups are formed (monetary aggregates). In addition, each subsequent aggregate complements the previous one with several amendments. In Russia, this allocation is carried out by the Central Bank.
The structure of monetary aggregates in our country has the following form:
- M0 - coins and banknotes involved in the process of circulation.
- M1 \u003d M0 + funds on current, settlement and special accounts of companies, household deposits posted in demand banks, insurance firms.
- M2 \u003d M1 + compensation and urgent bank deposits of households.
- M3 \u003d m2 + bonds and certificates of the states.
The difference of the elevated structure from a foreign version of its presentation
In general, the monetary aggregates in Russia do not have significant differences with the American classification of these concepts. However, in the US, as a rule, the M0 unit is not allocated, and M3 has a more detailed distinction.
Thus, the first grouping in the United States is represented by cash. The M1 monetary aggregate complements the grouping of M0 contributions to demand, check deposits and road checks. The grouping M2, in addition to the above components, includes VFDR shares and urgent deposits within 100 thousand dollars. M3 aggregate (except those included in the previous monetary group) consists of urgent deposits with a denomination of over $ 100,000, commercial securities. In the American structure there is a fifth unit (L), including, among other things, government securities.
So, you can summarize all the above and conclude that the money supply and monetary aggregates are closely intertwined, more precisely, the second concept is formed by the first.
How much money is required by the economy to ensure the adequate development of the country?
The amount of monetary aggregates is calculated within the framework of the classical quantitative economic theory, formulated by I. Fisher and A. Marshall. According to it, the value of money is in a certain dependence on their quantitative component.
I. Fisher formed an equation that reflects the specified dependence:
M x v \u003d p x q, where
V - the rate of alleged circulation of money;
Q - the volume of goods sold;
M - the amount of money supply;
P - total indicator of commodity prices.
Based on the elevated formula, you can define the desired value of the required amount of money. It is equal: m \u003d p x Q: V.
What does the amount of money supply depend on?
It is conjugate with three indicators, in particular:
- The price is from all the volume produced and offered to the sale of goods.
- The average price level in a specific country.
- The speed of circulation of money.
If, for example, a monetary mass produces one turn, that is, the revenues of the relevant economic entities go to the purchase of goods, and subsequently return in the form of the same income back, it will require one conditional amount of money supply. And then, if it makes not one, but three turns, it will take three times less money. In case of increasing the money supply to the limits exceeding the permissible level, inflation occurs.
The concept of liquidity in relation to the aggregates
Money primarily acts as a universal meter of the economic value of the relevant market benefits. They are used as a means of payment for any of the goods being implemented.
With money, such a concept is conjugate as liquidity - the property of assets within the market economy. So, the means of payment may be any asset. The difference only in the costs that are associated with the process of sharing on the bought benefit.
Exchange costs are customary to be called transaction costs.
Thus, the assets can be classified according to the degree of liquidity. The leader in connection with this is, of course, cash having a direct exchange property with zero costs. The liquidity approach is the base for such a previously discussed concept as monetary aggregates - a grouping of liquid assets for counting their cumulative value.
The most liquid assets from the point of view of the Central Bank of Russia are:
- Cash form of money, including money in the cash desks of commercial banks.
- Funds of commercial banks posted on relevant correspondent accounts in the Central Bank.
- Funds on deposit accounts Central Bank.
- Funds of commercial banks that are in the fund of the mandatory reserve Central Bank.
What functions of money are considered basic?
There are only three of them, namely:
- sharing means;
- means of accumulation of wealth or savings;
- measure of value.
Money and cash aggregates are two basic concepts that are the central link of a more extensive category, such as a money mass.
Control over their amount is carried out by the state within the framework of monetary or monetary policy. As mentioned earlier, this feature is assigned to Russia to the central bank, and monetary aggregates (M0, M1, M2, M3) are measuring instruments.
In the aspect of macroeconomic analysis more often than the remaining groups M1, M2 are used. It is also sometimes distinguished by such a cash indicator as "quasi-money", having a QM designation and being the difference of aggregates M2, M1. It is represented by savings and urgent deposits, therefore, M2 can be expressed by the amount of M1 and QM indicators.
The dynamics of monetary groups depends on a number of reasons, including the interest rate movement. Thus, if the rate is growing, then the units m2, m3 can be significantly discovered by M1, due to the fact that their components make income as a percentage. The M1 grouping, the last time began to include new contributions that bring income as percentage, and it, thereby smoothes the difference in the dynamics of monetary aggregates caused by the movement of interest rates.
Within the framework of Russian statistics, the following narrow interpretations of major monetary aggregates are applied, namely:
- M1 - "Money";
- Qm - "quasi-money" - savings and urgent deposits;
- M2 - "Wide Money".
It is calculated by the central bank in the aggregate and according to separate structural elements - the so-called units.
For example, the Central Bank of the Russian Federation allocates cash (M0) and various types of non-cash assets - checks, debit cards, deposits, bonds - designated as M1, M2, M3. In other countries, the M4 aggregate is additionally isolated: for example, in the UK, it includes borrowing governments and loans issued to organizations.
Money mass is one of the tools of the budget policy of the modern state. Exchange trading, factoring operations, taxation, increasing or decrease in refinancing rates - all this directly depends on the number of financial resources in circulation. Their increase can occur due to the inflow of foreign investment or additional emission of money due to the growth of budget expenditures. The decrease is usually the result of a targeted policy of improving the financial system.
Dynamics of money movement
The amount of money supply, as well as the relationship between different elements of its structure (for example, cash and deposits) varies depending on the economic situation. The high growth rates of the amount of money in circulation are talking about inflation and unfavorable economic conjuncture. That is why monetarists directly connecting these indicators are advised to deal with inflation with a decrease in financial resources in circulation (for example, through increasing taxes or reduced budget expenditures).
Due to the cyclicity of economic development, the volume of money supply is always unstable. Convenient tools for assessing growth dynamics gives the official website of the Central Bank of Russia. For example, as of May 1, 2018, the monetary mass of the Russian Federation, according to the Central Bank, amounted to 43.127 billion rubles. The highest growth rates were in the cash sector (3.2% in relation to the beginning of the year). Deposits in May also have a few "grown" (by 1.2%). Basically, due to deposits of the population (3.1%). At the deposits of organizations in relation to the beginning of the year, on the contrary, a decline was observed (minus 1.7%).
Lessons of the European Union
The unjustified issue of unsecured money only in the short term helps to cover the deficit of the state budget. In the long run, this contributes to a decrease in the commodity value of money and inflation.
That is why the United Kingdom since the 1970s. It was forced to go to the policy of hard reduction of budget expenditures. A vivid example is the story of Margaret Thatcher, ninked by her opponents "Milk's contrinitor". On the cancellation of free milk for students of junior classes "Iron Lady" saved about 19 million dollars. The reduction of costs for the social sphere, education and science, according to Margaret Thatcher, was justified, but in society it caused a mass of indignation.
In Germany, the "narrowing" of the social functions of the state also occurred in order to improve the financial system. This was done despite the mass of protests about the increase in retirement age and reducing unemployment benefits.
Conclusion
There are a lot of monetary motion factors: for example, the uniformity of the expenditure of funds, the shadow economy and the informal sector. The state does not always take into account them to fully. However, the understanding of the prospects for growth or the fall of the money supply, at least, gives entrepreneurs and economists themselves in determining their own economic strategy.
The article shows comparative statistics from 2000 to 2015: the money supply (M2) and cash (M0) in Russia and China. Monetary mass (M2) and GDP in Russia and China.
Comparative monetary mass statistics (M0, M2) and GDP in Russia and China
Money mass (m2)- This is the amount of cash in circulation and non-cash funds. The composition of the money supply allocated two components:
Cash in circulation (m0)- The most liquid part of the money supply is available for immediate use as a means of means. Includes banknotes and coins in circulation.
Non-cash funds - remnants of non-financial and financial (except credit) organizations and individuals on settlement, current, deposit and other demand accounts (including accounts for settlements using bank cards) and urgent accounts opened in the banking system in the currency of the Russian Federation, as well as accrued interest on them.
Cash ratio (M0) and money supply (M2) in the Russian Federation:
On the date | Cash M0. | Growth M0. | Non-cashless. facilities | Metal Mass M2. | Growth m2. | Specific weight m0 in m2 |
billion rubles. | % | billion rubles. | billion rubles. | % | % | |
01.01.2000 | 266 | 488 | 714 | 37 | ||
01.01.2001 | 418 | 57 | 731 | 1 150 | 61 | 36 |
01.01.2002 | 583 | 39 | 1 609 | 40 | 36 | |
01.01.2003 | 763 | 31 | 2 130 | 32 | 36 | |
01.01.2004 | 1 147 | 50 | 3 205 | 50 | 36 | |
01.01.2005 | 1 534 | 34 | 4 353 | 36 | 35 | |
01.01.2006 | 2 009 | 31 | 6 032 | 39 | 33 | |
01.01.2007 | 2 785 | 39 | 8 970 | 49 | 31 | |
01.01.2008 | 3 702 | 33 | 12 869 | 43 | 29 | |
01.01.2009 | 3 794 | 3 | 12 975 | 1 | 29 | |
01.01.2010 | 4 038 | 6 | 15 267 | 18 | 26 | |
01.01.2011 | 5 062 | 25 | 10 859 | 20 011 | 31 | 25 |
01.01.2012 | 5 938 | 17 | 12 857 | 24 543 | 23 | 24 |
01.01.2013 | 6 430 | 8 | 13 753 | 27 405 | 11 | 23 |
01.01.2014 | 6 985 | 9 | 15 536 | 31 404 | 15 | 22 |
01.01.2015 | 7 171 | 3 | 15 388 | 32 110 | 2 | 22 |
Cash ratio (M0) and money supply (M2) in the People's Republic of China:
On the date | Cash M0. | Growth M0. | Non-cashless. Means M1. | Metal Mass M2. | Growth m2. | Specific weight m0 in m2 |
billion yuan | % | billion yuan | billion yuan | % | % | |
01.01.2000 | 1 609 | 4 657 | 12 122 | 13 | ||
01.01.2001 | 1 701 | +6 | 5 440 | 13 754 | 13 | 12 |
01.01.2002 | 1 672 | -2 | 6 057 | 15 963 | 16 | 10 |
01.01.2003 | 2 124 | +27 | 7 240 | 19 054 | 19 | 11 |
01.01.2004 | 2 228 | +5 | 8 380 | 22 510 | 18 | 10 |
01.01.2005 | 2 401 | +8 | 9 707 | 25 770 | 14 | 9 |
01.01.2006 | 2 931 | +22 | 10 725 | 30 357 | 18 | 10 |
01.01.2007 | 2 794 | -5 | 12 848 | 35 149 | 16 | 8 |
01.01.2008 | 3 667 | +31 | 15 487 | 41 781 | 19 | 9 |
01.01.2009 | 4 108 | +12 | 16 521 | 49 613 | 19 | 8 |
01.01.2010 | 4 075 | -1 | 22 958 | 62 560 | 26 | 7 |
01.01.2011 | 5 806 | +42 | 26 176 | 73 388 | 17 | 8 |
01.01.2012 | 5 982 | +3 | 27 001 | 85 589 | 17 | 7 |
01.01.2013 | 6 244 | +4 | 31 122 | 99 212 | 6 | 6 |
01.01.2014 | 7 648 | +22 | 31 490 | 112 352 | 13 | 7 |
01.01.2015 | 6 304 | -17 | 34 810 | 124 271 | 10 | 5 |
Cash comparison (M0) in Russia and China
On the date | Cash RF money (m0) | Course dollar | Cash RF money (m0) | Cash Money PRC (M0) | Course dollar | Cash CNR (M0) | Attitude M0 RF to M0 PRC |
billion rubles. | rub. | $ USA billion billion | billion yuan | yuan | $ USA billion billion | ||
01.01.2000 | 266 | 27,0000 | 9,86 | 1 609 | 8,2674 | 194 | 20 |
01.01.2001 | 418 | 28,1600 | 14,88 | 1 701 | 8,2655 | 205 | 14 |
01.01.2002 | 583 | 30,1372 | 19,37 | 1 672 | 8,2643 | 202 | 10 |
01.01.2003 | 763 | 31,7844 | 24,01 | 2 124 | 8,2646 | 257 | 11 |
01.01.2004 | 1 147 | 29,4545 | 38,94 | 2 228 | 8,2643 | 269 | 7 |
01.01.2005 | 1 534 | 27,7487 | 55,31 | 2 401 | 8,2641 | 290 | 5 |
01.01.2006 | 2 009 | 28,7825 | 69,81 | 2 931 | 8,0534 | 363 | 5 |
01.01.2007 | 2 785 | 26,3311 | 105,78 | 2 794 | 7,7905 | 358 | 3 |
01.01.2008 | 3 702 | 24,5462 | 150,83 | 3 667 | 7,2764 | 504 | 3 |
01.01.2009 | 3 794 | 29,3916 | 129,11 | 4 108 | 6,8173 | 602 | 5 |
01.01.2010 | 4 038 | 30,1851 | 133,78 | 4 075 | 6,8131 | 598 | 4 |
01.01.2011 | 5 062 | 30,3505 | 166,81 | 5 806 | 6,5958 | 880 | 5 |
01.01.2012 | 5 938 | 32,1961 | 184,45 | 5 982 | 6,2742 | 953 | 5 |
01.01.2013 | 6 430 | 32,2058 | 185,57 | 6 244 | 6,3558 | 982 | 5 |
01.01.2014 | 6 985 | 32,6587 | 213,89 | 7 648 | 6,2896 | 1 216 | 5 |
01.01.2015 | 7 171 | 56,2376 | 127,52 | 6 304 | 6,2056 | 1 015 | 7 |
Comparison of the money supply (M2) in Russia and China
On the date | Cash RF money (m2) | Course dollar | Cash RF money (m2) | Cash RF money (m2) | Course dollar | Cash RF money (m2) | Attitude of the m2 of the Russian Federation to m2 of the PRC |
billion rubles | rub | $ USA billion billion | billion yuan | yuan | $ USA billion billion | ||
01.01.2000 | 714 | 27,0000 | 26 | 12 122 | 8,2674 | 1 466 | 55 |
01.01.2001 | 1 150 | 28,1600 | 40 | 13 754 | 8,2655 | 1 664 | 41 |
01.01.2002 | 1 609 | 30,1372 | 53 | 15 963 | 8,2643 | 1 931 | 36 |
01.01.2003 | 2 130 | 31,7844 | 67 | 19 054 | 8,2646 | 2 305 | 34 |
01.01.2004 | 3 205 | 29,4545 | 108 | 22 510 | 8,2643 | 2 723 | 25 |
01.01.2005 | 4 353 | 27,7487 | 156 | 25 770 | 8,2641 | 3 118 | 20 |
01.01.2006 | 6 032 | 28,7825 | 209 | 30 357 | 8,0534 | 3 769 | 18 |
01.01.2007 | 8 970 | 26,3311 | 340 | 35 149 | 7,7905 | 4 511 | 13 |
01.01.2008 | 12 869 | 24,5462 | 524 | 41 781 | 7,2764 | 5 742 | 11 |
01.01.2009 | 12 975 | 29,3916 | 441 | 49 613 | 6,8173 | 7 277 | 16 |
01.01.2010 | 15 267 | 30,1851 | 505 | 62 560 | 6,8131 | 9 182 | 18 |
01.01.2011 | 20 011 | 30,3505 | 659 | 73 388 | 6,5958 | 11 126 | 17 |
01.01.2012 | 24 543 | 32,1961 | 762 | 85 589 | 6,2742 | 13 541 | 18 |
01.01.2013 | 27 405 | 32,2058 | 850 | 99 212 | 6,3558 | 15 609 | 18 |
01.01.2014 | 31 404 | 32,6587 | 961 | 112 352 | 6,2896 | 17 863 | 19 |
01.01.2015 | 32 110 | 56,2376 | 570 | 124 271 | 6,2056 | 20 025 | 35 |
Gross Internal Product (GDP) - This is a key indicator of the system characterizing the cost of goods and services produced in the country in all sectors of the economy and intended for finite consumption, accumulation and exports (less import).
GDP can be calculated by three methods:
1. production,
2. Method for using income and
3. Method for the formation of GDP on income sources.
When calculating the production method, GDP is defined as a difference between the release of goods and services in the whole country, on the one hand, and intermediate consumption - on the other, or as the sum of the added value created in the sectors of the economy. At the same time, the volume of value added by industry is calculated in the main prices, i.e. Do not include products for products, but include subsidies for products. To calculate GDP in market prices, add clean (minus subsidies) products for products.
Gross domestic product calculated by the method of income use represents the amount of expenditure of all institutional units - residents of a given country for final consumption, gross accumulation and net exports.
The formation of gross domestic product in sources of income reflects the primary revenues created in the process of producing by all institutional units grouped into the economy sector. In this calculation, gross profit (gross mixed income) is a balancing article and is defined as the difference between the gross domestic product calculated by the production method in market prices, the wage of employees and clean taxes on production and import.
Comparison of the money supply (M2) and GDP of the Russian Federation (RF)
On the date | GDP of the Russian Federation | Course dollar | GDP of the Russian Federation | Money mass of the Russian Federation (m2) | R2 ratio to GDP |
billion rubles | rub | $ USA billion billion | billion rubles | ||
01.01.2000 | 4 823 | 27,0000 | 178 | 714 | 0,15 |
01.01.2001 | 7 305 | 28,1600 | 259 | 1 150 | 0,16 |
01.01.2002 | 8 943 | 30,1372 | 296 | 1 609 | 0,18 |
01.01.2003 | 10 830 | 31,7844 | 340 | 2 130 | 0,20 |
01.01.2004 | 13 208 | 29,4545 | 448 | 3 205 | 0,24 |
01.01.2005 | 17 027 | 27,7487 | 613 | 4 353 | 0,26 |
01.01.2006 | 21 609 | 28,7825 | 750 | 6 032 | 0,28 |
01.01.2007 | 26 917 | 26,3311 | 1 022 | 8 970 | 0,33 |
01.01.2008 | 33 247 | 24,5462 | 1 354 | 12 869 | 0,39 |
01.01.2009 | 41 276 | 29,3916 | 1 404 | 12 975 | 0,31 |
01.01.2010 | 38 807 | 30,1851 | 1 285 | 15 267 | 0,39 |
01.01.2011 | 46 321 | 30,3505 | 1 526 | 20 011 | 0,43 |
01.01.2012 | 55 798 | 32,1961 | 1 733 | 24 543 | 0,44 |
01.01.2013 | 62 356 | 2 053 | 27 405 | 0,44 | |
01.01.2014 | 66 689 | 32 6587 | 2 042 | 31 404 | 0,47 |
01.01.2015 | 70 975 | 56,2376 | 1 262 | 32 110 | 0,45 |
Comparison of the money supply (M2) and the GDP of the People's Republic of China (PRC)
On the date | GDP PRC | Course dollar | GDP PRC | Money mass PRC (m2) | Attitude M2 to GDP |
billion yuan | yuan | billion / $ USA | billion yuan | ||
01.01.2000 | 8 206 | 8,2674 | 992 | 12 122 | 1,48 |
01.01.2001 | 8 946 | 8,2655 | 1 082 | 13 754 | 1,54 |
01.01.2002 | 10 965 | 8,2643 | 1 326 | 15 963 | 1,46 |
01.01.2003 | 12 033 | 8,2646 | 1 456 | 19 054 | 1,58 |
01.01.2004 | 13 582 | 8,2643 | 1 643 | 22 510 | 1,66 |
01.01.2005 | 15 987 | 8,2641 | 1 934 | 25 770 | 1,61 |
01.01.2006 | 18 386 | 8,0534 | 2 283 | 30 357 | 1,65 |
01.01.2007 | 21 087 | 7,7905 | 2 706 | 35 149 | 1,67 |
01.01.2008 | 24 661 | 7,2764 | 3 389 | 41 781 | 1,69 |
01.01.2009 | 31 404 | 6,8173 | 4 606 | 49 613 | 1,58 |
01.01.2010 | 34 506 | 6,8131 | 5 064 | 62 560 | 1,81 |
01.01.2011 | 40 201 | 6,5958 | 6 094 | 73 388 | 1,83 |
01.01.2012 | 47 288 | 6,2742 | 7 536 | 85 589 | 1,81 |
01.01.2013 | 51 932 | 6,2315 | 8 333 | 97 415 | 1,88 |
01.01.2014 | 56 884 | 6,0969 | 9 330 | 112 352 | 1,97 |
01.01.2015 | 63 646 | 6,2056 | 10 256 | 124 271 | 1,95 |
Comparison of the GDP of the Russian Federation and the PRC GDP
On the date | GDP of the Russian Federation | Course dollar | GDP of the Russian Federation | GDP PRC | Course dollar | GDP PRC | Attitude GDP of the Russian Federation to the PRC GDP |
billion rubles | rub. | billion / $ USA | billion yuan | yuan | billion / $ USA | ||
01.01.2000 | 4 823 | 27,0000 | 178 | 8 206 | 8,2674 | 992 | 6 |
01.01.2001 | 7 305 | 28,1600 | 259 | 8 946 | 8,2655 | 1 082 | 4 |
01.01.2002 | 8 943 | 30,1372 | 296 | 10 965 | 8,2643 | 1 326 | 4 |
01.01.2003 | 10 830 | 31,7844 | 340 | 12 033 | 8,2646 | 1 456 | 4 |
01.01.2004 | 13 208 | 29,4545 | 448 | 13 582 | 8,2643 | 1 643 | 4 |
01.01.2005 | 17 027 | 27,7487 | 613 | 15 987 | 8,2641 | 1 934 | 3 |
01.01.2006 | 21 609 | 28,7825 | 750 | 18 386 | 8,0534 | 2 283 | 3 |
01.01.2007 | 26 917 | 26,3311 |
As indicators of money supply in most countries, aggregates M1, M2, M3, etc. are used. Different types of assets are grouped depending on the degree of their liquidity. Multiple liquidity assets are included in wider aggregates. The boundaries between the monetary aggregates are largely conditioned, and most of these indicators are no longer money, but quasi-thongs.
We believe that when analyzing the money supply, as well as the possible consequences of its change for the Russian economy, the use of the M2 monetary aggregate (according to the methodology of the calculation adopted by the Bank of Russia) is not always correct, and in some cases it can even lead to a certain confusion.
The Bank of Russia issues a cash currency that we all widely use in circulation, and some amount of non-cash rubles, which are presented in the form of funds on correspondent and deposit accounts of credit institutions in the Bank of Russia, balances on the accounts of mandatory reserves, investments in the Bank of Russia bonds. In fact, all this is the obligations of the Bank of Russia, determined in the aggregate as the "monetary base".
On this "real money" end and begins "quasi-thongs". On the same settlement accounts of "real money" no longer, they are present nominally. A demand account is such a title of ownership, which gives the right to own its owner and dispose of a certain amount of money. To carry out payments, this asset must be pre-converted into "real money" by using the Corsuit Bank. To ensure the possibility of conducting operations on settlement accounts, banks have to keep a certain amount of "real money" on the corschets. For example, 100 million rubles on the Corschets of the Bank can serve settlement accounts with the total amount of residues of 1 billion rubles. If there is no money on the corsche of the bank, the payment on the request of the client is impossible to hold, no matter how the amount of funds on the current account has established a client.
Urgent accounts are "money" to an even lesser extent. Their difference from the current accounts is that if in the first case, their owner can own and dispose of money on the first requirement, and it does it often, then in the second case, as a rule, only after the end of the deposit period, when he can carry out at his discretion payment, remove in the form of cash, etc. Therefore, urgent deposits are involved in the quality of money.
Various financial assets provide them with their owners to possession and disposal of a certain amount of "real money", but are money only nominally. Whenever payments, the owners of these assets pre-convert them to "real money" for further operations.
This is a very important point for understanding modern money circulation. Instead of "real money", you can store any asset, and if necessary, let's say, payments, simply convert this asset into money and make an operation. The more such operations, the more actively "work" in the "Real Money" economy. The greater the amount of operations "serves" a monetary base or "real money", the more actively involved in the appeal these the most "real money". In this case, they say that the higher the value of the money multiplier. Increasing the "intensity of work" of "real money" is equivalent to their increase in the economy. The effect of banking animation, by the way, is not so harmless in terms of inflationary consequences, as a number of economists believes.
More liquid assets, such as remnants on settlement and deposit accounts, are more often converted into money in order to conduct payments, so they are money to a greater extent. It is quite justified that they are included in the M2 monetary aggregate, one of the most important monetary aggregates, which is used in the development of economic policies and the establishment of quantitative landmarks of macroeconomic proportions. The correctness of the conclusions will be dependent on its reliability, which will be subsequently obtained.
Money mass (m2) - this is the amount of cash in circulation and non-cash funds. In terms of money supply, national definition includes all means of non-financial and financial (except credit) organizations and individuals who are residents of the Russian Federation, in cash and cashless form in rubles.
As we see, highly liquid securities, including governmentobaliations, bills and bonds of first-class issuers, are not included in the M2 monetary aggregate, nor into broad money supply. But are they in money to a lesser extent than urgent deposits? Which of these assets is more often converted into money for payments? The answer is not so unequivocal. According to my considerations, highly liquid bonds are not less "money" than term deposits. It is well known that highly liquid securities are stored in briefcases as an asset, which in the event of a shortage of liquidity can be promptly sold on the market to obtain a cache and holding payments.
The bond market in certain periods reached significant volumes. For example, according to the Central Bank, currently only the volume of GKO-OFZ is about 1.5 trillion. rubles. The fact that the substantial expansion or narrowing of the debt tool market is not reflected in the value of the M2 indicator is a clear distortion of reality.
In Mexico, M2 includes both the securities of the federal government and the Central Bank and highly liquid private securities. The European Union includes in M3 debt obligations up to three years. Japan in the "Widespread definition of liquidity", in addition to the components of M3, includes commercial securities, repo agreements, governmentobaliations, foreign debt securities. Approximately the same procedure for calculating Korea. Iceland includes debt securities issued by commercial banks, credit cooperatives, savings banks in M4.
The same applies to cash and funds in accounts (both current and urgent) in foreign currency. Even if our internal calculations in the root are prohibited, the frequency and ease of converting these assets in rubles, I think it's not a secret for anyone. Involete accounts are included in the so-called "money supply in broad definition". However, economists operate mainly by the M2 monetary aggregate. And it can lead to very controversial conclusions. For example, in October 2008 compared with September 2008, the M2 monetary unit, based on the statistics of the Central Bank, decreased by 5.94% from 14.4 trillion. rub. As of October 1, 2008 to 13.5 trillion. rub. on November 1, 2008. Many experts have called a decrease in the growth rate of the money supply in October 2008 "very significant", not doubting that it will sooner or later this will lead to a decrease in inflation. The transfer of ruble assets into the maintenance and, as a result, the decrease in M2 does not mean deflationary consequences for the economy. Currency accounts, as well as ruble, are, in essence, quasi-thongs and contribute to the increase in the "intensity of work" of the monetary base.
Cash Sali is not taken into account at all when calculating monetary aggregates. Given the amount of cash and the euro in the hands of the population, it turns out a significant underestimation of the money supply. The volume of cash in the hands of the population may increase by $ 30-40 billion (about 1 trillion. Ruble equivalent), and the monetary aggregates do not reflect this. The specifics of Russia is a large amount of cash in circulation. We believe that they should be considered when calculating monetary aggregates.
A number of countries include deposits denominated in foreign currency in all aggregates. In Norway (as well as Russia, the excess flow of currency from exports accumulates in sovereign funds) cash and deposits (nominated both in the national and foreign currency) are included in M1 and M2. Japan includes deposits in foreign currency in M2. In Mexico, dollar deposits are included in all monetary aggregates.
Ideally, you can count on a combined monetary unit, in which various assets would be included with the weight coefficients showing how a particular asset acts on the payment tools. Less liquid assets to a lesser extent are a means of payment and to a greater extent to the value of the cost. And vice versa. Then the formula for calculating the money supply will look as follows: DM \u003d ND + ΣAI * qi,
where DM is a money mass;
ND - cash in circulation;
AI - the cost of a financial asset;
Кi - weighing coefficient, which depends on the frequency of conversion of a particular asset in money with the purpose of holding payments.
If weighing coefficient for settlement accounts is taken for 1, then for currency accounts to demand, its value will be about 0.9, for highly liquid debt instruments - about 0.8, urgent ruble and currency accounts - about 0.75, etc.
The "combined cash aggregate" in its economic sense is similar to the "Money Divisia" indicator. However, in contrast to the expert method of calculating the weighing coefficients, depending on the frequency of the conversion of this asset in "real money", its developers use a more formal approach to transaction payments. The financial asset is considered more liquid depending on the less interest rate accrued by this financial asset, compared with some benchmarking adopted in the given country.
Since 1993, Money Divisia since 1993 is regularly calculated, in particular, by the Bank of England. The widespread cash aggregates, calculated as the sum of weighted assets, have not yet received only due to certain difficulties of their calculation.
The advantage of monetary aggregates M1, M2, M3 is in the simplicity of their calculation. Nevertheless, even if the Bank of Russia refuses the combined monetary unit due to the complexity of its calculation, at a minimum, there is a need to adjust the methodology for calculating the M2 monetary aggregate - the most common indicator of the money supply in Russia.
MP Tshrekebov,
candidate of Economic Sciences,
analyst OJSC Bank Petrocommerce
List Literature
- 1. Illarionov A.
- 2. MONETARY AND FINANCIAL STATISTICS: Compilation Guide - Washington, D.C. // International Monetary Fund. 2008.
- 3. Yueh-Yun C. O'Brien. Measurement of MoneyTary Aggregates Across Countries. // Federal Reserve Board, Washington, D.C. 2007.
Under the intrabank calculations of the movement of funds in the Corschet does not occur, i.e. In fact, no preliminary conversion account is required in "real money". Nevertheless, the general course of reasoning and end conclusions does not affect.
Although, in accordance with the current Russian legislation, all term deposits are almost revocable, their early closure is usually associated with the loss of interest income.
Illarionov A. Nature of Russian inflation. // "Economy Questions." 1995. No. 3. S. 11.
By the name of the French economist, Franzois Divisia (1925), the first to proper calculation of this indicator.
MONETARY AND FINANCIAL STATISTICS: Compilation Guide - Washington, D.C. // International Monetary Fund. 2008. P. 184.