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money, which includes the currency issue (m) of the central bank and the bank debt (reserve, R) guaranteed by the central bank. Base money is the basis of the whole commercial banking system to create deposit money, and is the source of multiple expansion of deposits in the whole commercial banking system
e to the imperfection of the previous monetary theory and the wrong understanding of the nature of money, people do not distinguish between money and deposit money. The latter is caused by the movement and circulation of the former in the market, and the difference between the two is just like the difference between "people" and "person times". The basic currency actually contains the concepts of these two different forms, which is an outdated and wrong concept
the base currency is composed of cash and deposit reserve. The increase or decrease of the base currency is usually determined by the following four factors:
the change of the creditor's rights of the central bank to commercial banks and other financial institutions
this is the most important factor affecting the base currency. Generally speaking, the increase of the central bank's creditor's rights means that the central bank's rediscount or refinance assets to the commercial banks increase. At the same time, it also shows that the base money injected into the circulation through the commercial banks increases, which will inevitably lead to the increase of the excess reserves of the commercial banks and the multiple expansion of the money supply. On the contrary, if the central bank's claims on financial institutions decrease, the money supply will shrink significantly. It is generally believed that under the condition of market economy, the central bank has a strong control over this part of creditor's rights
amount of foreign net assets of base currency
foreign net assets are composed of foreign exchange, gold and the net assets of the central bank in international financial institutions. Among them, foreign exchange and gold are purchased by the central bank with the base currency. In general, if the central bank does not take the stability of exchange rate as the policy objective, it will have a greater initiative in the base currency through the asset business; Otherwise, the central bank will passively enter the foreign exchange market to intervene in order to stabilize the exchange rate because it wants to maintain the stability of the exchange rate. In this way, the supply and demand of the foreign exchange market will have a great impact on the foreign exchange account of the central bank, resulting in the passivity of the base currency released through this channel
the net debt of base currency to government
the increase of the net debt of central bank to government is usually formed by two channels:
one is direct subscription of government bonds; Second, loans to finance to make up the deficit. No matter which channel, it means that the central bank has injected the base money into the circulation field through the financial department. For example, China's fiscal borrowing stock in 1995 was more than 160 billion yuan, which had a certain impact on the monetary base in recent years
other items of base currency (net)
this mainly refers to the increase or decrease of fixed assets and the increase or decrease of receivables and receivables of the central bank in the process of capital clearing. They all have an impact on the amount of base money
there are three main channels for monetary authorities to release the base money:
first, to issue currency directly; Second, change gold and foreign exchange reserves; Third, implement monetary policy.
The base currency is the debt certificate issued by the central bank, which is represented by the deposit reserve (R) of commercial banks and the currency (c) held by the public. The central bank can control it. The basic currency is composed of cash and deposit reserve, and its increase or decrease is usually determined by the following four factors:
(1) the change of the creditor's rights of the central bank to commercial banks and other financial institutions. This is the most important factor affecting the base currency. Generally speaking, the increase of the central bank's creditor's rights means that the central bank's rediscount or refinance assets to the commercial banks increase. At the same time, it also shows that the base money injected into the circulation through the commercial banks increases, which will inevitably lead to the increase of the excess reserves of the commercial banks and the multiple expansion of the money supply
(2) the amount of foreign net assets. Foreign net assets consist of foreign exchange, gold and the net assets of the central bank in international financial institutions. Among them, foreign exchange and gold are purchased by the central bank with the base currency (3) net debt to the government. There are two ways for the central bank to increase the net debt to the government: one is to directly subscribe for government bonds; the other is to directly subscribe for government bonds Second, loans to finance to make up for the fiscal deficit. No matter which channel, it means that the central bank has injected the base money into the circulation field through the financial department. For example, China's fiscal borrowing stock in 1995 was more than 160 billion yuan, which had a certain impact on the monetary base in recent years (4) other items (net). This mainly refers to the increase or decrease of fixed assets and the increase or decrease of accounts receivable and payable in the process of capital clearing by the central bank. They all have an impact on the amount of base money
extended data
base currency, the basis of which the whole commercial banking system creates deposit currency, and the source of multiple expansion of deposits in the whole commercial banking system. From the qualitative point of view, the basic currency has several basic characteristics:
first, the central bank's monetary liabilities, rather than the central bank's assets or non monetary liabilities, are supplied by the central bank through its own asset business
The second is to adjust and control the supply through the influence of variables directly controlled and regulated by the central bank The third is the basis of supporting the liabilities of commercial banks. If commercial banks do not hold the base currency, they can not create credit Fourthly, under the implementation of the reserve system, the amount of base money used by the whole banking system can be several times more than its own. From the source, the base money is supplied by the central bank through its asset businessbut to make money with computers, you have to rely on your brain
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