Investigation of channel formation of the money supply

The important is to study the formation of channels of money, because they directly affect the effectiveness of monetary policy. It should be noted that in developed countries, money growth through the multiplier effect of the monetary base. In Ukraine, recently poured money into the economy mainly through the purchase of foreign currency from exporters, who began to turn into a "first-holders' money. The main channel of issue of money in circulation is the foreign exchange market: January - August 2005 issue of the net, aimed at buying and selling currencies, amounted to over 26.4 billion USD .. More like to draw attention to the structure of cash circulation in Ukraine. During 2001-2005, there was growth in the number of banknotes of each denomination. During 2004-2005, especially the increase in the number of banknotes in denominations of 50, 100 and 200 UAH. This has influenced the change in the structure of bank notes - share notes of high denominations (50, 100, 200 grn.) Gradually increased. While the share of low denomination banknotes (1, 2, 5 grn.) Category: A PRACTICAL ANALYSIS OF MONETARY ISSUE