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LEGAL REGULATION OF MONEY CIRCULATION Money circulation - the movement of money in the domestic turnover of cash and non-cash forms, serving circuit products,

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Presentation on theme: "LEGAL REGULATION OF MONEY CIRCULATION Money circulation - the movement of money in the domestic turnover of cash and non-cash forms, serving circuit products,"— Presentation transcript:

1 LEGAL REGULATION OF MONEY CIRCULATION Money circulation - the movement of money in the domestic turnover of cash and non-cash forms, serving circuit products, non-commodity payments and settlements.

2 Forms of currency: circulation of cash, i.e. currency (notes and coins) ; non-cash currency is to write off a sum of money from the account of one entity and its admission to the account of another entity with the bank.

3 Regulation of currency is expressed in monetary policy that provides NBT, and consists of a change in the money supply to reduce inflation and stimulate economic growth. Optimally organized monetary system facilitates effective Circular Flow, well served by the development of all spheres of economic activity, the movement of the economy as a whole.

4 The policy of " tight money " is carried out in order to curb inflation. The reduction in the money supply causes a rise in the interest rate for the loan. This can lead to a decrease in the rate of inflation, but at the same time reduce investment and exacerbate the problem of unemployment.

5 The policy of "cheap money " is aimed at stimulating economic growth. For this increases the money supply, reduced interest rate for a loan, it becomes more affordable credit, increasing investment and employment. However, this policy is fraught with increasing inflation.

6 interest rates on the Bank of Tajikistan; mandatory reserve deposits with the Bank of Tajikistan (reserve requirements); open market operations; refinancing of credit institutions; foreign exchange intervention; setting targets for monetary growth; direct quantitative restrictions; issuance of bonds on its behalf.


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