Analysis of world practice of cash circulation
Nowadays, attention is being paid to studying the structure of money circulation in foreign countries, which is stipulated by changes in cash monetization of the economy and the role of cash and financial operations performed with cash. According to the results based on the national and foreign research of cash circulation, the advantages and disadvantages of using cash in money turnover have been identified. The rating of countries with the least dependence on cash is given. It has been stated that in the developed countries the bank cards are used as an alternative to cash, the sizes of which vary depending on the location and characteristics of consumer lending in them. The problem is being studied: what reasons stimulate the demand for cash? The factors that influence the cash providing the goods and services circulation, other payments of the population of various countries (assessment of motives for holding money, total demand for cash, transactional, cumulative and speculative or portfolio costs have been given). Cash needs planning also plays an important role. In the Bank of Russia cash need planning is provided on the forecast estimates for all face values of coins and banknotes. A review of a sample of cash circulation and factors affecting it in Russia for the period from 1998 to 2018 is presented. The graphs of changes in the money supply and its growth rates, gross domestic product and its growth rates are illustrated. A correlation matrix is built for all variables in the sample (growth rates). The conclusions are drawn about the need in the monetary mechanism for regulating cash circulation to maintain the national independence and statehood in the context of digitalization of the world economy on a global scale.