FUNCTIONS OF THE CREDIT MECHANISM AND MONEY CIRCULATION IN THE FINANCIAL SYSTEM

Authors

  • Orolova Dinora Farxodjon kizi

Keywords:

Credit mechanism, money circulation, financial system, liquidity, economic growth, financial stability.

Abstract

The credit mechanism and money circulation play a pivotal role in ensuring the stability and efficiency of the financial system. This study explores the primary functions of credit, including facilitating investment, stimulating economic growth, and regulating liquidity within the economy. In parallel, money circulation is analyzed as a key process that ensures the smooth functioning of transactions, price stability, and effective allocation of resources. The paper emphasizes the interdependence between credit and money flows, highlighting their significance in maintaining economic balance and promoting sustainable development. By examining theoretical frameworks and practical examples, the research provides insights into how credit and money circulation contribute to the overall functionality of the financial system.

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References

Mishkin, F.S., & Eakins, S.G. (2018). Financial Markets and Institutions. 9th Edition. Pearson.

Keynes, J.M. (1936). The General Theory of Employment, Interest, and Money. Macmillan.

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Bernanke, B.S., & Blinder, A.S. (1988). Credit, Money, and Aggregate Demand. American Economic Review, 78(2), 435–439.

Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, Inequality, and the Poor. Journal of Economic Growth, 12(1), 27–49.

Mishkin, F.S. (2007). The Economics of Money, Banking, and Financial Markets. 8th Edition. Pearson.

Fabozzi, F.J., Modigliani, F., Jones, F.J., & Ferri, M.G. (2010). Foundations of Financial Markets and Institutions. 4th Edition. Pearson.

Kohn, M.L., & John, L. (2006). Financial Institutions and Markets. Oxford University

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Published

2025-10-09

How to Cite

Orolova Dinora Farxodjon kizi. (2025). FUNCTIONS OF THE CREDIT MECHANISM AND MONEY CIRCULATION IN THE FINANCIAL SYSTEM. Journal of Applied Science and Social Science, 15(10), 210–214. Retrieved from https://www.internationaljournal.co.in/index.php/jasass/article/view/1993

Issue

Vol. 15 No. 10 (2025): Volume 15 Issue 10

Section

Articles

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