Circulation of Money in the System and How Inflation is Created

The circulation of money is understood as a process of continuous monetary movement, supplying processes of goods and services circulation and capital movement. Circulation of money reflects directed money flow between the central bank and commercial banks; between commercial banks; between commercial banks and enterprises, institutions of different legal forms; between commercial banks and individuals; enterprises and individuals, between commercial banks and various financial institutions; between financial institutions and individuals. In countries with market economy monetary circulation consists of cash and bank (non-cash) money (Gartner). 

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Finance Dissertation | Money Laundering Population

"Money laundering is the world's third largest industry (Jeffrey Robinson (1995)) and may occur almost anywhere in the world. Given the nature of this phenomenon, money laundering has gained in significant proportion. Be they drug traffickers, terrorists, arm traffickers, blackmailers or credit card swindlers, all criminals demand for money laundering. This criminal activity erodes profits of all financial institutions, increases corruption and fuel social injustice."

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