How and when money is printed

Instruction
As the production of goods and population grew, barter became almost impossible. It was then that they invented money, which began to play the role of a temporary intermediary in any transaction. For this system to work, all its members had to believe in the value of money. The price of any commodity began to be measured in gold and silver. In tsarist Russia, until 1914, every ruble was confirmed by a measure of gold. Uncontrolled emission gradually replaced gold from the ruble. In today's world, gold reserves have long been unable to provide all the needs of the state budget. This function is performed by the so-called credit paper money, which became the progenitors of the money "electronic".
The development of new branches of the economy forces the state to constantly introduce additional funds into circulation. Some advance in the money supply (the sum of all cash and non-cash money in the state) relative to GDP (gross domestic product) creates a small financial reserve and stimulates economic development, while reducing prices and rates.
According to the quantity theory of money, confirmed in practice, an increase in the money supply leads to an increase in prices, and not the economy. Thus, money that is not backed up by a product entails an increase in prices and a decrease in the cost of living. In Russia, this artificial inflation is regulated by the Central Bank by restraining the money supply (issuing money for currency inflows) and increasing the taxation of citizens.
Equilibrium in the financial market is possible by balancing the money demand (demands of the population) and supply (opportunities of banks).
Money is printed on state orders in the Gosznak factories, which include a mint, paper and printing factories. High quality paper provides enhanced durability (preventing tearing, kinking) and wear resistance (protection against fading and burnout) of future notes. Several types of printing are used: offset (creating hydrophilic and hydrophobic films), Oryol (special color transition), high (creating borders), metallographic (creating recesses).
Protection against forgeries is provided by watermarks, special marks (fibers visible in the range of infrared and ultraviolet radiation), metallized and colored filaments.


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