Emission causes an increase in money supply

The issue is money supply growth and deletions - to decrease it. Both processes are almost parallel, the two divergent streams of varying intensity. As a rule, the issue of money than their removal, although some, particularly small intervals of time, sometimes vice versa. Balance (sum) of equity transactions on release (emission) and withdrawal from circulation - this is the result of emission [10. 29]. In this paper I would like to draw your attention to detail and to consider the mechanism of emission of the central bank and ways to improve emission policies. For a start I would like to give a clear definition ponyattb "money issue" and "optimization". Money issue - (from the English. Issue, evission) issuance of currency in exchange of worn and damaged, resulting in an increase in the money supply; issuance of an additional quantity of money, an increase of the mass produced commodity (GNP) and inflation . Optimization - choosing the best option among many possible solutions, the process of bringing the system into a better state. In the first definition implies optimization analysis of the system in terms of the optimality criterion. This search for "optimum" and called optimization. The second definition of optimization is the process of translating the system studied in the right state. In this case, depending on the optimality criteria distinguish vector optimization, stochastic, multi-criteria, etc. [25]. The concept of "money issue" and "issue" - are not equal. Issue of money in circulation is constant. Non-cash money issued into circulation, when commercial banks lend to their customers. Cash released into circulation when the banks are in the process of carrying out cash transactions give their clients from operational cash. But at the same time customers are repaying bank loans and take cash in the bank teller. The quantity of money in circulation and can not grow. Under the emission is understood this issue of money in circulation, which leads to an overall increase in money supply in circulation. That is, we can conclude that the optimization of printing money - to select the best version release cash and noncash money into circulation, an increase of the mass produced commodity or inflation. The emission system is regarded as under the statutory procedure for issuing bank notes in circulation and is an integral part of the monetary system. Regulation of the emission system is provided by open market operations, changes in reserve requirements, interest rates and other instruments of monetary policy [26]. To gain a better understanding of the nature of emission appropriate, in my opinion establish the key issue: cash and cashless. Under the cash emission understand the issue of currency in circulation, that is, granting the central bank in the economy of a certain mass of money. To determine the issue of non-cash non-cash in the form of loan and deposit. The monopoly right to carry cash in a central bank of issue of the state. Legislative emission monopoly over the Central Bank as representative of the state is fixed in the West only in respect of banknotes and coins in some cases. In the West, cash flow is a very small place, even in the calculation of the population - usually less than 5 - 10%. Planning is no cash flow because of its absurdity: the money is automatically "sold" through the offices of banks, the central bank as they become available and demand can not be used to cover budget deficits. Therefore, the monopoly on banknote issue does not mean its brutal control, or due to the macroeconomic indicators. Category: METHODOLOGICAL FOUNDATIONS OF MONEY EMIS