The amount of currency issued by each country is determined by what

Productivity (which determines the total amount of goods) determines the amount of money issued by a country.

If the country's money-issuing institutions issue more money, and there is no corresponding increase in productivity, that is, there is no corresponding increase in the number of goods produced, then because of supply and demand, more money will be used to buy goods, and the currency will be devalued in the international view.

The formula for calculating the law of currency circulation: the amount of money necessary for circulation in a certain period of time = commodity** commodity circulation volume unit currency circulation velocity = commodity ** total unit currency circulation velocity.

One. The principles of RMB issuance are as follows:

1) Centralized and unified issuance. It means that the right to issue RMB belongs to the state. **Banks formulate and implement monetary policies in accordance with the law, issue RMB, and manage the circulation of RMB.

2) Planned issuance. It means that the issuance of RMB must be carried out in accordance with the plan for currency transformation and issuance stipulated by the state, and the issuance volume is controlled by the first and foremost. The decision made by the People's Bank of China on the annual monetary ** volume shall be implemented after being submitted for approval.

3) Economic issuance. It is also known as credit issuance, which means that the issuance of currency is to meet the objective needs of national economic development. With the growth of production, the expansion of commodity circulation, and the corresponding increase in the amount of money in circulation, we insist on the economic issuance of money and oppose fiscal issuance, that is, we oppose the increase in the issuance of money in order to make up for the need to make up for the fiscal deficit, and oppose the excessive issuance of money by banks due to fiscal overdrafts to banks.

There is money from the state treasury.

Issuance of RMB: The Chinese state stipulates that RMB is a credit currency, and RMB does not stipulate the gold content, and is a credit currency that is not cashed. The RMB exists in the form of cash and deposit currency, cash is uniformly issued by the People's Bank of China, deposit currency is circulated by the banking system through business activities, and the People's Bank of China implements monetary policy in accordance with the law to manage and regulate the total amount and structure of RMB.

The issuance of the dollar: the United States ** has no right to issue currency at all! After the assassination of Kennedy, the United States finally lost the right to issue the only remaining "dollar".

If the United States wants to get the dollar, it must mortgage the future tax revenue (national debt) of the American people to the private Federal Reserve, and the Federal Reserve will issue "Fed bills", which is the "dollar".

As can be seen from the above, the two are fundamentally different. The head office of the People's Bank of China shall, in accordance with the development of the national economy, propose a currency issuance plan, submit it to the People's Bank for approval, and then organize the annual currency issuance according to the approved issuance amount. The Federal Reserve issues "Federal Reserve Bills", or "U.S. dollars", based on the future taxes (Treasury bonds) of the American people.

The only way for money to enter the market is to borrow, and money is debt. For example, if the state wants to issue 1 billion currency, it will write 1 billion yuan on a piece of paper, and then stamp a very official seal, which is called treasury bills, and then send it to the central bank; The central bank then prints a batch of its own paper, called xx bills, and the central bank then uses this bill to buy treasury bonds, so that it can get the 1 billion xx bills, and then deposit it in the bank, and then through deposits, these bills become the currency of legal debt repayment. Bonds are debts, and once someone buys this with money (a signed slip anyway), then the money is generated.

And what about the value of this new currency, who gave the value of the new currency? It is by stealing the value of the currency issued before, which is the so-called currency devaluation, and since the reform and opening up 30 years ago, the renminbi has depreciated more than 100 times according to the variable price ratio. Every bill in our wallets is generated from debt, owed by someone to someone.

Money can only come from the bank, and every banknote to the bank carries interest, but where does the currency that represents this interest come from? No, he simply doesn't exist! The amount of money returned to the banks always exceeds the amount of money in circulation, which is why inflationary currency depreciation is inevitable (the capitalist system is self-subverting), because there is always a need to issue new money to supplement the chronic inherent shortage of money in the entire monetary system due to interest repayment.

And money can be generated out of nothing by borrowing, for example, the general state stipulates that banks have reserve ratios, which is to prevent runs or something, and others can be loaned out, such as 10%.The above people stamped a few pieces of paper and sent them over to generate 1 billion banknotes, and now the 1 billion banknotes are stored in commercial banks, of which 900 million can be issued as loans. In fact, the 900 million banknotes were not loaned out of the 10 banknotes issued, but out of nothing.

The bank simply increases the account balance of both parties by way of bookkeeping. At the same time as the loan was granted, 900 million yuan was added to the deposit. Of course, 90% of the 900 million deposits can be loaned out as deposit reserves, and 100 million yuan can be loaned, and of course, this 100 million yuan can be loaned out, and at the same time, 100 million deposits have been increased, and 90% of this 100 million can be loaned out.

In this way, for every 1 billion treasury bonds issued, a maximum of 10 billion new coins can be generated.

Write casually, personal opinion, our country is embarrassed to also engage in the monetary system of capitalist private banks.

Currency issuance refers to the total amount of money issued by a country, usually including all circulating and non-circulating currencies. Among them, the amount of cash issued in circulation refers to the amount of cash issued in a certain period.

Money is just a form of controlling the country's economy, like wanting to enrich the treasury, one way is normal taxation and so on, and the other way is printing money. The second method is because the productive forces have not developed accordingly (the number of commodities has not increased accordingly), and the money in the hands of the people is worthless, which means that the second method will make the people rich, the people will be poor, and then the people will not be able to buy things, which is not conducive to economic development.

Extended Materials. Monetary policy

Monetary policy, also known as financial policy, refers to the general term for the various guidelines, policies and measures adopted by the central bank to control and regulate the amount of money and credit in order to achieve its specific economic goals. The essence of monetary policy is that the state adopts different policy trends such as "tight", "loose" or "moderate" according to the economic development of different periods.

The nature of monetary policy (the way in which central banks control money** and the way in which money, output, and inflation are linked) is one of the most fascinating, important, and controversial areas of macroeconomics.

1) Fiscal policy consisting of ** spending and taxation. Fiscal policy mainly affects long-term economic growth by influencing national savings and incentives for work and savings.

2) Monetary policy is carried out by the central bank, which affects the money supply. A series of measures to indirectly affect aggregate demand by the central bank to regulate the amount of money, affect the interest rate and the degree of credit in the economy, so as to achieve an ideal equilibrium between aggregate demand and aggregate supply.

The object of monetary policy adjustment is the amount of money, that is, the total purchasing power of the whole society, which is manifested in the form of: cash in circulation and deposits in banks of individuals, enterprises and institutions. Cash in circulation is closely related to changes in the consumer price level, is the most active currency, and has always been an important target of the central bank's attention and adjustment.

Monetary policy instruments are economic and administrative instruments controlled by the central bank to regulate the base currency, bank reserves, money supply, interest rates, exchange rates, and the credit activities of financial institutions in order to achieve their policy objectives. There are seven main measures:

First, control the issuance of currency.

Second, it is necessary to control and regulate loans to commercial banks.

Third, the implementation of open market business.

Fourth, change the reserve requirement ratio.

Fifth, adjust the rediscount rate.

Sixth, selective credit control.

Seventh, direct credit control.

The monetary policy tools available to the central bank are not the only ones, but a comprehensive system of tools, each of which has its own advantages and limitations, and the central bank achieves its macroeconomic control goals through the selection and combination of monetary policy tools.

The amount of banknotes issued depends on the amount of money issued by a country through banks over a given period of time, and usually includes all currencies in circulation or non-circulation.

Among them, the amount of cash issued in the currency circulating in the market refers to a certain amount of cash issued by banks within a certain period of time. It is calculated as follows: the actual amount of money required in the circulation of commodities = the total amount of commodities and the average number of times the same unit of currency is in circulation.

Fundamentally, it should be determined by the bank's issuance readiness and credit.

With the progress of the economy and society, it is also necessary to consider various currency derivatives, international ** and other factors.

Generally, it is determined by the total amount of money to be circulated in the market, but in some cases, the amount of currency issued is still related to the ruler at the time, such as the rule of the Kuomintang, the indiscriminate issuance of fiat currency, resulting in non-stop prices.

To be commensurate with the level of development of social productive forces, GDP is generally used to measure. For example, if GDP grows by 1 trillion, then the currency should print 1 trillion banknotes this year, and if it prints too much, it will produce inflation. For example, in China, since 08, M2 has exceeded GDP by more than double for a long time, and the excess issuance has doubled, so prices have skyrocketed.

1. It is the fundamental requirement of the law of money circulation that the amount of money in circulation is consistent with the flow of social commodities.

2. Therefore, the People's Bank of China (central bank) is the main body of currency issuance, and currency issuance is based on the total social product and its increment.

3. Its theoretical basis is Marx's formula for money circulation: the number of times the currency of the same name is in circulation and the amount of money that implements the means of circulation.

There are some differences, if there are no financial institutions, then the amount of money issued and the money supply should be the same.

Similar to banks, they absorb savings and then lend them, which virtually increases the supply of money.