How does the new money supply move from the central bank to ordinary people?

What you just said is fiscal policy, which was formulated by the Ministry of Finance. Note that the central bank is relatively independent of the Ministry of Finance abroad (of course, in China, the central bank still belongs to the Ministry of Finance). The new money circulation that the landlord said refers to monetary policy.

Because in the West, there is no right to print money, only banks can do it.

New currencies are usually addressed through open market operations. That is, the central bank makes its own money flow out through ** treasury bonds (issued by the Ministry of Finance), so as to flow money to commercial banks. Commercial banks make money circulate in society by borrowing money.

Okay, I'll have your addition now. There is no other mysterious mechanism for central banks to issue more money. The main thing is what you said about these three items.

In practice, the central bank will use the interest rate as a peg because the interest rate is the balancer of the supply and demand of money (the ** of money). Once the economy develops and the demand for money rises, resulting in an increase in the equilibrium interest rate, the central bank will increase the supply of government bonds in order to stabilize the interest rate, so that the interest rate will return to the original point.

Your question has touched on the essence and difficulties of monetary policy. Your question consists of two questions.

The first is whether there are enough national bonds to meet the demand for money? You don't have to worry about that, because a large number of new government bonds are issued every year. The central bank will absorb only a small fraction.

A large number of government bonds are in the treasury bond market and are held by the people. As a result, there will not be a situation where there are too few government bonds to issue more money. Besides, there are two more common methods, which you have already mentioned.

The second question is whether the central bank is paying for the overdraft? This is a complex issue. A very independent central bank, such as the Federal Reserve, will generally only consider catering to rising demand for money and paying for Treasuries when the economy is doing normally.

However, if the economy is overheating (and it may be caused by a deficit), the central bank will not target the interest rate mentioned above. Because this time it causes inflation (price increases). The central bank will even implement tight monetary policy and create a recession to intervene in the economy (so central bank independence is necessary, and no one is willing to create a recession on their own).

This is that the central bank will not pay for **, and ** can only rely on itself to reduce the issuance of government bonds.

Historically, there have also been cases where central banks have printed large amounts of money, all of which have caused hyperinflation. Therefore, independent central banks will not pay indefinitely.

One is to increase fiscal expenditure, improve the level of purchase, and flow into the society!

2. Convert the new money supply into an indirect supply of commodities and other resources through the lending of investment by commercial banks.

3. Increasing the consumption of water goods by directly increasing citizens' incomes and consumer loans.

Fourth, through the purchase of corporate bonds and ** investment by banks, the new money supply will be put into the society.

Think of these for now.

I don't know if you have read Samuelson's economics textbook, which is discussed in detail in the macro part, which can be explained by the monetary transmission mechanism.

The first floor obviously didn't see the topic clearly, and he asked about the intermediary of the central bank, hehe, careless.

The reserve requirement ratio can be lowered, so that the central bank can virtually increase the funds retained by the state-owned banks of various countries, and can increase the total amount of funds circulating in society.

I'm a finance student! Bank refers to a special financial organization that is in a central position in a country's financial system and represents a country's financial and economic development, and it is the product of the development of commodity economy, monetary credit system and banking system to a certain stage. Banks have three basic functions, namely, the issuing bank, the bank of the bank, and the bank of the bank.

Among them, the basic function of "issuing bank" means that the bank accepts the authorization of the state, concentrates and monopolizes the right to issue currency, and is the only currency issuing institution in the country. The function of "the bank's bank" explains how the money issued by the ** bank flows into the market. On the one hand, this function means that the bank is above the commercial bank and other financial institutions, occupies a tie position, and supervises and manages the commercial bank and other financial institutions and institutions, and on the other hand, the commercial bank and other financial institutions are the business objects of the bank, and the bank concentrates their reserves, provides them with credit, and handles the clearing of funds between commercial banks and other financial institutions and institutions.

At the same time, ** banks, as lenders of last resort, usually use rediscount and mortgage loans to make loans to commercial banks and other financial institutions. In this way, the flow of money in the market will be more stable.

To put it simply, the central bank monopolizes the right to issue money in the market, but these currencies serve commercial banks and other financial institutions through the business of the central bank, rather than ordinary industrial and commercial customers and residents, the central bank gives loans to commercial banks and other financial institutions in the form of rediscounts and mortgages, and then flows to the society through commercial banks and other financial institutions. and other ways to carry out the circulation of funds and currencies with commercial banks and other financial institutions, and in this process, only commercial banks and other financial institutions are connected.

The flow of money issued by the central bank.

**Currency issued by banks flows into the market in four main ways:

1.the central bank buys back government bonds and central bank bills, and repays external debts (which are used only when fiscal constraints make it difficult to turn);

2.The central bank purchases foreign currency from commercial banks to form the central bank's foreign exchange reserves (not all foreign currencies purchased are newly printed currency, and often the central bank's stock monetary assets are used);

3.It becomes the income of ** and enters the circulation field through ** expenditure (** used when there is a financial shortage);

4.The central bank deposits the newly printed banknotes into the commercial banks (specifically from the central bank's issuance inventory to the business treasury of the commercial banks), directly increases the base money, and then flows into the society through credit.

All of the above methods will lead to inflation to a certain extent, but as long as it is a slight price **, it does not matter, after all, price ** is a general trend.

** The three major monetary policy tools of banks:

Rediscount rate (interest rate), reserves, open market operations, i.e., treasury bond operations.

1.The adjustment of the rediscount rate is actually the adjustment of the interest rate, which is oriented to the whole society, has a great impact on the people, and is also the most direct, immediate and the most important operation in the monetary policyRaising reserves refers to the main effect on banks, which is used to control the amount of loans and reduce the effect of monetary multipliers, and the effect is relatively mild.

It mainly affects enterprises and has little impact on the general public.

3.The operation of the open market and the issuance of treasury bonds is to recover a part of the liquid money. To redeem a treasury bond is to issue a certain amount of currency in circulation. Due to the relatively low ratio of China's government bonds, the effect of open market operations is not very obvious.

It can be seen from the definition of the amount of money that there are no more than two ways to expand the money supply: one is to increase the base currency.

The second is to raise the currency multiplier.

Increase the base currency. Starting from the asset side of the monetary authority, we should increase the use of domestic assets, that is, increase relending and rediscounting.

Scale, especially for small and medium-sized financial institutions that are in dire need of capital, can influence the increase in base money from the asset side. Expand currency issuance. In the base currency, currency issuance accounts for nearly 50%, so increasing currency issuance is an effective way to expand the base currency, and then increase the amount of money (M1, M2).

At present, China's economic surplus is by no means a surplus under the condition of a highly developed economy, and it is far from reaching the level where there are too many things to be used.

Extended information: 1. **Bank card.

It refers to the credit payment instruments with all or part of the functions of consumer credit, transfer and settlement, cash deposit and withdrawal, etc., issued by commercial banks (including postal financial institutions) to the public after approval. Bank cards have reduced the circulation of cash and cheques, making banking fundamentally different from the limitations of time and space. The use of the automatic bank card settlement system has made the dream of a "check-free, cashless society" a reality.

2. Precautions for use.

Bank cards are all real-named, do not lend them to others.

When using a bank card, it is best to use the local bank in the name of the account to withdraw funds and transfer deposits, which can save handling fees. Bank cards should be placed in the sleeve, do not touch each other, and do not interact with the ID card.

Parallel to prevent loss of magnetism.

Do not place the bank card in a cloth bag, do not carry it easily, it is easy to lose and break.

Don't tell others the card number of the bank card and bind it casually, let alone tell the password of the bank card.

3. Types of bank cards.

Two types of bank cards can generally be divided into two categories, which are debit cards.

with credit cards. Among them, debit cards are mainly used for deposits, and do not support overdraft consumption, including savings cards.

wealth management cards, etc. Credit cards can be used for overdraft consumption and deposits, but the deposits have no interest, including credit cards, quasi-credit cards, etc.

4. Banks: Banks are the dominant financial center institutions in the country and an important tool for the state to intervene and regulate the development of the national economy. It is responsible for formulating and implementing the national monetary and credit policy, has the exclusive power to issue currency, and implements financial supervision.

China's ** bank is the People's Bank of China.

Abbreviated as the central bank.

**Bank. In the modern market economy, the scope and form of money circulation are constantly expanding, and cash and demand deposits are generally considered to be money, time deposits.

and certain credit instruments that can be converted into cash at any time.

such as public bonds, life insurance policies, credit cards) are also considered to be monetary in nature.

The factors that determine the money supply include: increasing the issuance of money by banks, regulating the amount of funds available to commercial banks, the ability of commercial banks to derive funds and economic development, and the state of money demand of enterprises and residents. The money supply comes in two forms:

The nominal money supply expressed in monetary units, and the real money supply expressed in terms of the goods and services that can be purchased by money in circulation.

When the central bank increases the amount of money, it is often announced, which will promote the volatility of the foreign exchange market.

Hello! The main ways to increase the amount of money are as follows:

1. The statutory reserve ratio, reducing the statutory reserve ratio, increasing the loanable funds of commercial banks, and deriving money from the currency multiplier effect. Here the landlord said that the increase in excess reserves refers to the increase in the amount of the original reserve on the basis of adding more amounts, not to increase the reserve ratio, and to increase the reserve ratio are two concepts, increasing the excess reserves can increase the amount of funds lent by commercial banks, so it is also a means to increase the amount of money!

2. Open market operation, through the way of recovering bonds from the market, the currency is invested in the market.

3. Discount rate: Reducing the discount rate reduces the cost of commercial banks to the central bank, increases the number of loans, and derives money from the currency multiplier effect.

Hope it helps!

If it is really written to increase the amount of money when taking an increase in the excess reserves of the bank, I can only tell you: unfortunately, you have seen another typographical and typographical error. When I was a sophomore in high school, I also noticed that there were several misrepresentations in algebra books.

But, the good thing: you don't have superstitious books, you know how to think.

Answer]:cCorrect Answer]:C

Analysis] Increasing the rediscount rate will increase the cost of commercial banks to raise funds from ** banks, and commercial banks will shrink the scale of loans and investments to customers, thereby reducing the amount of market money, and option A is wrong. When the statutory reserve ratio is raised, the commercial bank needs to hand over the statutory deposit reserve of the ** bank to increase, and the available funds decrease, resulting in a decrease in the amount of currency **, and option b is wrong. Reducing the amount of loans issued will directly lead to a decrease in the amount of money, and option d is wrong.

Answer]: C Increasing the rediscount rate will increase the cost of commercial banks to raise funds from ** banks, and commercial banks will shrink the scale of loans and investments to customers, thereby reducing the amount of market money, and option A is wrong. When the statutory reserve ratio is raised, the commercial bank needs to hand over the statutory deposit reserve of the ** bank, which increases and decreases the available funds, resulting in a decrease in the amount of money **, and option B is wrong.

Reducing loan disbursement will directly lead to a reduction in the amount of currency rebate orange**, and option d is wrong.