2. Money delivery is the symmetry of money extraction. The process and results of cash deposit in banks by various departments of the national economy. Money supply is a means for the national bank to regulate the currency circulation in the market. It is the amount of cash paid by the national bank to departments, units and individuals through business activities according to the policies of the party and the government and the needs of the market for currency circulation.
The base currency is the basis for the entire commercial banking system to create deposit currency, and it is the source of the multiple expansion of deposits in the entire commercial banking system. From a qualitative point of view, the base currency has several basic characteristics:
First, it is the monetary liabilities of the central bank, not the assets or non-monetary liabilities of the central bank, which are supplied by the central bank through its own asset business; (The establishment of a modern central bank does not depend on financial capital injection and asset guarantee, and neither the currency issuer nor the government provides asset guarantee for the currency, so the currency issuance actually does not have the characteristics of a letter of credit, so the operation of the central bank is actually equal to the debt operation, and the debt scale of the central bank actually depends on the scale required to perform the circulation function. The asset business of the central bank is actually a derivative of the central bank's debt business. )
Second, through the influence of variables directly controlled and regulated by the central bank, the purpose of regulating supply is achieved; All units receive cash from banks and pay employees' salaries; Expenditure on purchasing agricultural and sideline products from rural areas or farmers; Expenditure on purchasing industrial and mining products and handicrafts; Agricultural financial credit; Withdraw savings deposits from the bank.
Third, it is the basis for supporting the liabilities of commercial banks. Commercial banks cannot create credit without holding the base currency; Modern commercial banks can create a lot of monetary credit by issuing contingent credit derivatives without relying on the base currency; In the process of financial circulation, by issuing financial innovation tools, the credit creation ability of commercial banks is actually not restricted by monetary policy and money supply, and the final debt scale of commercial banks depends on the net asset scale and risk management ability of commercial banks)
Fourth, under the reserve system, the base currency is used by the entire banking system and can generate several times its own volume. From the source, the base money is supplied by the central bank through its asset business.