GENESIS OF MONEY AND ORGANIC NATURE OF THE CENTRAL BANK EMISSION FUNCTION

Abstract

The article shows the conformity of the emission function of the Central Bank with the current essence of money. This function of the Central Bank, as well as the body itself appeared within the frames of the gold-standard monetary system, which stopped functioning in 1976. The author underlines the fact that banking system is a derivative of the monetary system: the former is the part of the latter. Consequently, changing the system of more general order, i.e. monetary system should cause changes in the system of particular order, i.e. the banking system, changes in the emission function and some other instruments of the Central Bank. However, it did not take place and it has a negative impact on the development of the market but not on the condition of the Bank. Fixing organic conformity between these systems could start with scientific formulation of the question and its public discussion in literature. The aim of this article is to start such a discussion, to invite to discussion of this acute problem of establishing and functioning of the monetary and banking system.

Keywords

• money
• monetary system
• emission of cash
• obligatory booking
• refinancing