scholarly journals THEORETICAL ASPECTS OF DETERMINING THE VALUE OF MONEY, DEPENDING ON THEIR FORMS IN CIRCULATION

2018 ◽  
pp. 82-94
Author(s):  
Oleksandr DZYUBLYUK
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
National Currency ◽  
Main Task ◽  
Basic Principles ◽  
Theoretical Approaches ◽  
Monetary Unit ◽  
Monetary Relations ◽  
The Stability ◽  
Value Of Money

Introduction. The development of forms of money and the evolution of monetary relations affected the assessment of the value of the monetary unit. The problem of understanding the value of money is also complicated by the fact that value is the reflection of the worth of an object, expressed in money, estimating the value of money itself, which is the basis for the effective organization of monetary relations and commodity exchange. Under such circumstances, the rationale for adequate theoretical approaches to understanding the value of money is one of the important tasks in the process of implementing an effective monetary policy as a means of ensuring macroeconomic equilibrium, low inflation and economic growth. Purposes. The purpose of this article is to substantiate and systematize theoretical views on understanding the value of money in the light of the evolution of their forms in the development of monetary relations and those changes that took place in the basic principles of the organization of the monetary system, as well as the formulation of those recommendations for optimizing the basic principles of monetary policy , which should be aimed at ensuring the stability of monetary circulation and the normal functioning of the national economy. Results. The fundamental theoretical approaches to assessing the value of money in the development of money relations and changes in the forms of money in circulation are analyzed and systematized. The article defines the methodological foundations for understanding the value of money and its change, depending on the internal value of a material substance that serves as a general equivalent in the current historical period. Conclusion. An adequate understanding of the value of money serves as the cornerstone of the formation of the principles of monetary policy in a situation where the emission activity of the central bank and its task of maintaining the stability of the national monetary unit are directly determined by the need to bind the aggregate money supply to the needs of the overturn of goods and services. Awareness of the concepts of the value and price of money allows formulating the factors of influence on the stability of the national currency: 1) the stability of prices for goods, reflecting the correspondence of money supply and commodity turnover; 2) the stability of interest rates as the price of credit, which determines the role of money as a factor of production; 3) stability of the exchange rate reflecting the foreign values of the national currency. The main task of the state in the formulation and implementation of economic policies is to maintain the value of the monetary unit at an unchanged level, which is a key condition for successful economic development and the welfare of society.

scholarly journals STABILIZATION OF THE NATIONAL CURRENCY RATE IN ENSURING ANTI-CRISIS DEVELOPMENT AND ECONOMIC SECURITY OF UKRAINE

2020 ◽  
Author(s):  
Oleksii Miroshnychenko ◽  
Keyword(s):  
Exchange Rate ◽  
Economic Security ◽  
National Currency ◽  
Purchasing Power ◽  
Consumer Prices ◽  
Monetary Unit ◽  
The Exchange Rate ◽  
The Stability ◽  
The Relationship ◽  
Theoretical Foundations

The results of the study of the reasons for the decrease in the value of the national currency of Ukraine - the hryvnia are presented. A study of the theoretical foundations, political aspects and economic patterns of the devaluation of the hryvnia. The dynamics of consumer prices and the exchange rate of hryvnia to foreign currencies during 1992-2020 is studied. An analysis of the dynamics of the purchasing power of the hryvnia and the exchange rate is given. The inflationary nature of the positive dynamics of Ukraine's GDP is proved. Conclusions on the relationship between inflation and devaluation are presented. The necessity of ensuring the stability of the monetary unit in order to ensure anti-crisis development and increase the level of economic security of Ukraine is proved.

scholarly journals Repressive Policy of the Soviet State in the Field of Protection and Ensuring the Stability of the Ruble in the 1920s-1950s (Financial, Economic, Criminal and International Legal Aspects)

2021 ◽  
pp. 123-148
Author(s):  
Mikhail Emilevich Zharkoi
Keyword(s):  
Monetary Policy ◽  
Russian Federation ◽  
Financial Economic ◽  
Legal Aspects ◽  
National Currency ◽  
Soviet State ◽  
Financial Credit ◽  
The Russian Federation ◽  
The Stability ◽  
International Aspects

Based on the analysis of archival and bibliographic sources, the paper examines the financial, economic, criminal and international aspects of the policy of the Soviet state in the field of protection and maintenance of the national currency and economic sovereignty of the USSR in the 1920s-early 1950s. Special attention is paid to the study of the law enforcement practice of Soviet punitive bodies. In conclusion, conclusions are formulated designed to actualize the priority of conducting a unified financial, credit and monetary policy in the Russian Federation

scholarly journals Money Supply Model in Muslim Countries

2019 ◽  
Vol 7 (2) ◽  
pp. 233-241
Author(s):  
Nanda Suhanda ◽  
Hamdan Firmansyah
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Precise Determination ◽  
Policy Makers ◽  
Muslim Countries ◽  
Supply Model ◽  
Main Thing ◽  
The Stability ◽  
Value Of Money

Efforts to control economic conditions in a country are called monetary policy. The main thing is to regulate the stability of the value of money and the amount of money circulating in the homeland of each country. This macro policy is expected to be able to respond to micro economic growth so that real economic growth will be realized. The economic success of a country is largely determined by the precise determination of monetary policy. This policy was created in response to the microeconomics which was then managed in a macro manner by policy makers. This policy making step must be in accordance with the sharia scenario so that the economic growth is expected to get a blessing so that falah is the ultimate goal of the economy as well as being realized as the policy is taken. A literature review was finally taken in order to find answers to this essential monetary policy concept. The final goal of the discussion of sharia economic policy is to maintain and maintain the stability of the country's economy.

scholarly journals The Relationship between Exchange Rate, Official Reserves and Money Supply in Kyrgyzstan

2017 ◽  
Author(s):  
Junus Ganiev ◽  
Damira Baigonushova ◽  
Nevin Aydın
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Money Supply ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Kyrgyz Republic ◽  
Monthly Data ◽  
The Stability ◽  
The Relationship

In recent years, there has been considerable instability in the exchange rates of many countries. This can directly affect macroeconomic stability on one side and monetary policy or rather money supply on the other. Because central banks are making interventions to the foreign exchange market by buying and selling foreign exchange in order to provide stability of exchange rate. As a result, both the official reserves and the money supply are constantly changing. Since Kyrgyzstan is a country dependent on imports in most commodities, the Central Bank of the Kyrgyz Republic sees the exchange rates’ stability as an important instrument of price stabilizing. However, such a policy may deteriorate the stability of the total money supply and adversely affect the economy. Therefore, in this study, it is aimed to examine the relations between exchange rate, money supply and official reserves by using 2002-2016 monthly data and cointegration method. Empirical results have shown that a change in the exchange rate causes opposite changes in both the reserves and the money supply as a result of the central bank’s interventions. However, more concrete recommendations on the effectiveness of monetary policy in Kyrgyzstan are required to make more detailed analysis.

scholarly journals Impacts of Monetary Policy on Stability of Commercial Banks – Evidence from Vietnam

2021 ◽  
Vol 10 (4) ◽  
pp. 92-103
Author(s):  
Duc Trung Nguyen ◽  
Thi Nhu Quynh Nguyen
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Stability ◽  
Full Employment ◽  
Optimal Level ◽  
Central Banks ◽  
Bank Stability ◽  
High Inflation ◽  
The Stability

Before 2009, most central banks conducted their monetary policy with the ultimate goals of promoting price stability, economic growth and full employment. However, the 2009 financial crisis demonstrated that these goals are not enough to maintain a stable financial arena. So, aside from those objectives, the objective of financial stability is also of interest to central banks when implementing monetary policy. In this study, the authors explore the influence of monetary policy on the stability of commercial banks in Vietnam – an emerging economy. The study uses the dataset of the Vietnamese commercial banks from 2008 to 2019, applying SGMM estimations and checking their robustness with a Bayesian approach. The results show that, in recent years, the SBV has effectively implemented monetary policy to ensure banks’ stability in Vietnam. In particular, money supply M2 has positively impacted the stability of commercial banks. Also, the results imply that the ratio of loan to total assets, the ratio of cost operating to income operating, as well as CPI, correlate negatively with bank stability. The study did not find any impact of bank size or GDP on bank stability during the research period. Based on these results, the SBV should manage an optimal level of money supply M2 to guarantee efficient economic operations in general and maintain bank stability in particular, and should avoid high inflation.

MAINTENANCE OF THE MONETARY SYSTEM STABILITY IN UZBEKISTAN

2013 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Alisher Ismailov
Keyword(s):  
Central Bank ◽  
Money Supply ◽  
Foreign Currency ◽  
National Currency ◽  
System Stability ◽  
Open Market ◽  
Monetary System ◽  
Business Entities ◽  
The Stability ◽  
High Level

During the years of independence, the Republic of Uzbekistan has succeeded in building the modern monetary system. The national currency was introduced, monetary and currency markets have been developed along with the provision of independence of the Central Bank. However, the stability of national monetary system has not been ensured yet. In particular, the monetization level of the economy remains low, while the GDP deflator is rather high. In addition, high level of national currency devaluation is observed in recent years.Eventually all these urgent problems will negatively influence the stability of macroeconomic growth. The relatively high level of the GDP deflator (GDP deflator reflects a more realistic rate of inflation) has led to the significant growth of the money supply, which resulted in a strong devaluation of the national currency of Uzbekistan. For example, in 2012 the devaluation level of the national currency against the U.S. dollar was 10.5%. In addition, because of the low monetization coefficient, a crisis of defaulted payments among business entities has arisen.The author proposes to increase the volume of foreign currency swap and Gold Swap operation of the Central Bank of Uzbekistan in order to decrease the devaluation of the national currency. The author also suggests increasing the flexibility of monetary policy instruments such as an open market policy and reserve requirements to ensure the stable growth of the money supply.

scholarly journals Aspects of influence of monetary policy on dynamics of agro-industrial com-plex development

2020 ◽  
Vol 22 (96) ◽  
pp. 3-8
Author(s):  
P. M. Muzyka ◽  
B. B. Brychka ◽  
L. V. Honcharenko
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Agricultural Products ◽  
National Currency ◽  
Price Stability ◽  
Industrial Complex ◽  
Agricultural Enterprises ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
The Stability

The main approaches to the interpretation of the essence of monetary policy arepresented in the article, as well as the author’s definition are substantiated. The author highlights the main characteristics of monetary policy, in particular its target orientation, specific time horizon, the presence of a clear mechanism of monetary policy, as well as the coordinated and balanced using of a set of monetary instruments to achieve each goal. In addition, the components of the stability of the currency are substantiated, which includes price stability, stability of interest rates, as well as the stability of the national currency exchange rate. The influence of each of the components of the currency stability on the dynamics of agro-industrial complex development is substantiated. First of all, price stability ensures stable income from the sale of agro-industrial products in the domestic market. In this case, the dynamics of real earnings of agricultural enterprises will depend on changes in relative prices. Stability of interest rates is important in terms of incentives for agricultural enterprises to obtain additional credit resources. The impact of the stability of the national currency exchange rate on development of agro-industrial complex can be traced in two directions. First of all, agricultural enterprises are interested in stable exchnage rate of hryvnia due to the import of mineral fertilizers, seeds, feed additives, foreign equipment for the production and processing of agricultural products, agricultural machinery, etc. Devaluation of the hryvnia during the period of import purchases of necessary raw materials provokes a future increase in the cost of agricultural products. At the same time, agricultural enterprises are interested in a certain devaluation of the hryvnia, which will stimulate the export of agricultural products and ensure the stability of incomes in the national currency.

National Currency Appreciation and Growth of the Russian Economy

2004 ◽  
pp. 95-111
Author(s):  
T. Zolotoukhina
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
National Currency ◽  
Economic Factors ◽  
Exchange Market ◽  
Russian Economy ◽  
Macroeconomic Indicators

The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.

On Practical Validity of Quantity Theory of Money, or How Much the Dogmatism of Monetary Authorities Costs

2008 ◽  
pp. 31-45 ◽  
Author(s):  
S. Glazyev
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Money Supply ◽  
Market Equilibrium ◽  
Static State ◽  
Quantity Theory ◽  
Monetary Authorities ◽  
State Of The Economy ◽  
Market Organization

The article critically considers basic postulates of quantity theory of money. It shows that they reflect the static state of the economy in abstract models of market equilibrium but do not prove true in actual economic processes. In contrast to monetarists’ view, prices can rise as well as fall even if other variables of the monetarist equation are stable. Thus it cannot be used for grounding monetary policy. The author comes to the conclusion on the dogmatism of Russian monetary authorities that seriously hinders the country’s economic development. He proposes to switch to market organization of money supply basing on regulation of the refinancing rate.

The Role of Different Channels in Transmitting Monetary Policy into Output and Price in Vietnam

2015 ◽  
pp. 20-40
Author(s):  
Vinh Nguyen Thi Thuy
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Monetary Transmission ◽  
Impulse Response Functions ◽  
Short Run ◽  
The Exchange Rate ◽  
The Interest Rate ◽  
Interest Rate Channel

The paper investigates the mechanism of monetary transmission in Vietnam through different channels - namely the interest rate channel, the exchange rate channel, the asset channel and the credit channel for the period January 1995 - October 2009. This study applies VAR analysis to evaluate the monetary transmission mechanisms to output and price level. To compare the relative importance of different channels for transmitting monetary policy, the paper estimates the impulse response functions and variance decompositions of variables. The empirical results show that the changes in money supply have a significant impact on output rather than price in the short run. The impacts of money supply on price and output are stronger through the exchange rate and credit channels, but however, are weaker through the interest rate channel. The impacts of monetary policy on output and inflation may be erroneous through the equity price channel because of the lack of an established and well-functioning stock market.

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