Implications for Monetary Reform

What keeps the three major industrial blocs -- Western Europe, North America, and industrialized Asia -- from developing a common monetary standard to prevent exchange-rate fluctuations? One important reason is the differing theoretical perspectives of economic advisers. The first issue is whether or not a floating foreign exchange market -- where governments do not systematically target exchange rates -- is “efficient.” Many economists believe that exchange risk can be effectively hedged in forward markets so international monetary reform is unnecessary. Second, after a decade and a half of unremitting turbulence in the foreign exchange markets, economists cannot agree on “equilibrium” or desirable official targets for exchange rates if they were to be stabilized. The contending principles of purchasing power parity and of balanced trade yield very different estimates for the “correct” yen/dollar and mark/dollar exchange rates. Third, if the three major blocs can agree to fix nominal exchange rates within narrow bands, by what working rule should the new monetary standard be anchored to prevent worldwide inflation or deflation? After considering the magnitude of exchange-rate fluctuations since floating began in the early 1970s, I analyze these conceptual issues in the course of demonstrating how the central banks of Japan, the United States, and Germany (representing the continental European bloc) can establish fixed exchange rates and international monetary stability.

Download Full-text

Principles of monetary system reform in Russia in the XIX century. (To the 150th anniversary of the memory of N. I. Turgenev)

Moscow University Economics Bulletin ◽

10.38050/013001052021411 ◽

2021 ◽

pp. 218-236

Author(s):

Irina Nazarova

Keyword(s):

Economic Transformation ◽

State Regulation ◽

System Reform ◽

Monetary Reform ◽

Monetary System ◽

Market Situation ◽

Characteristic Features ◽

Xix Century ◽

Monetary Circulation ◽

Russian Model

The purpose of the study is to characterize the Russian model of monetary circulation during the transition from pre-capitalist forms of economy to a relatively developed capitalism in the late XIX century. The paper provides the analysis of theoretical ideas on the specifics of metal, paper and credit instruments of circulation. The key principles of the Russian model of monetary circulation are formulated in the programs of statesmen (M. M. Speransky, E. F. Kankrin, S. Yu. Witte), in the works of economists who presented alternative concepts of money, the theoretical provisions of which formed the conceptual «core» of the new monetary system. The article reveals the features of quantitative approach of N. I. Turgenev, who was the first to analyze the factors of inflation development associated with issue of banknotes, and possible scenarios of monetary reform aimed at its mitigation. The author identifies fundamental differences in the methods of reforming Russia’s monetary system in 1839-1843 and 1895-1897, considers the characteristic features of the new system of «state credit money», the concept introduced by M. M. Speransky, and the criteria for its stabilization. He then shows that the concept of «state credit money» arose at the intersection of the interests of market and state economy and reveals the role of state and commercial institutions in forming a new model of monetary circulation. The paper reveals the specifics of the domestic monetary system during the transition to capitalist production. The study contributes to the development of the theory of money, as it shows the relationship between the evolution of national economic system, the model of monetary circulation and the instruments of state regulation of the market situation. The author concludes that the changes that occurred in the theories of money are a reflection of changes in the monetary system itself and state monetary policy during the periods of economic transformation.

Download Full-text

Monetary Reform in Russia

Journal of Political Economy ◽

10.1086/250435 ◽

1897 ◽

Vol 5 (3) ◽

pp. 277-315 ◽

Cited By ~ 3

Author(s):

H. Parker Willis

Keyword(s):

Monetary Reform

Download Full-text

Central Bank or Monetary Authority? Three Views on Money and Monetary Reform

Economic Affairs ◽

10.1111/ecaf.12258 ◽

2017 ◽

Vol 37 (3) ◽

pp. 343-356 ◽

Cited By ~ 2

Author(s):

Frank Decker

Keyword(s):

Central Bank ◽

Monetary Authority ◽

Monetary Reform

Download Full-text

Monetary Reform Movements. By Joseph E. Reeve. Washington: American Council on Public Affairs, 1943. Pp. xiv, 404. Cloth, $3.75; paper, $3.25.

The Journal of Economic History ◽

10.1017/s0022050700084059 ◽

1944 ◽

Vol 4 (1) ◽

pp. 78-80

Author(s):

G. L. Bach

Keyword(s):

Public Affairs ◽

Reform Movements ◽

Monetary Reform ◽

American Council

Download Full-text

ВПЛИВ ГРОШОВОЇ РЕФОРМИ 1920-х РОКІВ НА БЮДЖЕТНІ ВІДНОСИНИ В УКРАЇНСЬКІЙ СРР

Вісник Полтавської державної аграрної академії ◽

10.31210/visnyk2014.01.19 ◽

2014 ◽

pp. 75-81

Author(s):

О. В. Чеберяко

Keyword(s):

Point Of View ◽

Budgetary Process ◽

Monetary Reform ◽

Fixed Budget ◽

Monetary Unit ◽

State And Local

Становлення та функціонування радянської бю-джетної системи в УСРР у 1920-ті рр. було немож-ливим без грошової реформи, а її здійснення у 1922–1924 рр. сприяло організаційно-функціональному впо-рядкуванню бюджетної системи, формуванню ста-лих показників дохідної і видаткової частин держав-ного та місцевих бюджетів, інакше – так званоготвердого бюджету. Показано, що під кутом зорубюджетного фінансування основне навантаженняпротягом 1921–1924 рр. узяв на себе радянський знак,тобто гроші державної скарбниці. Радянський знакнавіть охороняв червінець від знецінення в період йо-го запровадження як нової грошової одиниці. Тому,визначаючи вплив грошової реформи на бюджетнийпроцес, слід брати до уваги всі стадії грошової рефо-рми та співвідношення довоєнного рубля й так звано-го товарного, умовного золотого рубля. В умовахутвердження твердої валюти – червінця – для стабі-лізації бюджетної системи і бюджетних відносинважливо було запобігти знеціненню, унеможливитивід ролі емісійного засобу. Для цього необхідно булоуникати емісії в бюджетних доходах, економно ви-користовувати бюджетні видатки, відповідальноставитися до бюджетного планування, ретельнорозглядати фінансові джерела. Formation and functioning of the soviet budgetary system in Ukrainian SSR in the 1920th was impossible without monetary reform, and the realization of this reform in 1922-1924 promoted to organizationally - functional arrangement of the budgetary system, forming of permanent indexes of profitable and expendable parts, state and local budgets, that the so-called fixed budget. It is shown that from the point of view of the budgetary financing, a soviet banknote («sovznak»), that is money of treasury, undertook the basic load during 1921–1924. A soviet banknote even guarded tchervonets from depreciation in the period of introduction as new monetary unit. Therefore, determining influence of monetary reform on a budgetary process, it should to take into account all stages of monetary reform and correlation of pre-war rouble of and so called trade, conditional gold rouble. In the conditions of statement of fixed currency – tchervonets – for stabilizing the budgetary system and budgetary relations it was important to protect tchervonets from depreciation, to prevent the role of emission mean. It was necessary to avoid emission in budgetary profits, to use budgetary expenditures economically, to plan the budget responsibly, to consider financial sources carefully.

Download Full-text