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2 thoughts on “jewelry wholesale germany Is the amount of currency required in circulation is the same as the national circulation volume?”
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sterling silver jewelry wholesale sf It is really different. The amount of currency required in circulation is the amount of currency demand. The national circulation volume is the supply of currency. It is a currency issuance based on the forecast of the central bank and a currency supply. Originally, currency supply was formulated according to the predicted social currency demand, but due to market changes, the amount of currency demand changed, resulting in the actual social currency demand may not be similar to that of the currency supply. The situation has changed the price of prices. Therefore, the central bank's function issuance bank does not only refer to the issuance of currency, but also includes the situation where the amount of currency amount is not similar to the actual social currency demand is not similar. The tightening monetary policy or loose monetary policy.
wholesale 14k gold plated jewelry The state issuance you call should refer to the supply of currency, and the supply of currency is relative to the demand for currency, which is the amount of currency required for the circulation you call.
The currency supply refers to the act of currency supply (that is, banks in modern economy) to provide currency to the economy entities to meet their currency demand.
The currency supply (I understand equivalent to the national circulation you said) refers to the number of currency assets held by non -bank sector, that is, the number of currencies in circulation. Once the currency is injected into the economy and enters the actual circulation, the reality of currency will be formed. Therefore, theoretically, the amount of currency supply is equal to the amount of currency in circulation, and the two have a corresponding relationship.
If to clear the relationship between the two, you must first understand the scope of the currency. Under the contemporary credit currency system, the diversification of currency forms has become a reality. The currency includes both cash in circulation, deposits in the banking system, and even various bills and other credit circulation tools to participate in the circulation as a substitute for currency to a certain extent and perform certain functions of the currency. The currency liquidity of different forms is different, and the role of the circulation is different. At present, according to the liquidity of assets, that is, the ability of various currency assets to be transformed into currency or real purchasing power to divide different currency levels, and then there is a different caliber currency supply. The division of the current currency level in my country is basically:
m0 = cash in circulation
m1 = m0 bank current deposit
m2 = m1 regular deposit savings deposit certificate volume company customer margin
Cash and banking deposits are currency in circulation, which is the narrow currency supply M1 in my country; regular deposits savings deposits certificates company customer margin belong to the potential currency volume, and together with M1, it constitutes my country's broad currency M2.
It, it is necessary to understand the currency supply mechanism. In summary, the central bank's issuance currency, and commercial banks created the derivative deposit (specifically do not repeat it).
The currency supply has many schools and theories, such as the theory of the Kanes School, the theory of the neoclassical comprehensive school, the currency school, the theory of currency supply of new economic liberalism, and so on. Speaking a lot.
In short, each country hopes to achieve the balance of currency and supply balance, that is, the balance of currency, but the reality is often unsatisfactory, which will cause the phenomenon you say.