Geldordnung, Geldschöpfung und Staatsfinanzierung

2013 ◽  
Vol 62 (2) ◽  
Author(s):  
Timm Gudehus
Keyword(s):  
Central Bank ◽  
Public Debt ◽  
Balance Sheet ◽  
State Funding ◽  
The Public ◽  
Monetary Stability ◽  
Money Creation ◽  
Accounting Rules ◽  
The Right ◽  
Monetary Order

AbstractThe current paper analyses the different kinds of money creation and their contribution to state funding. It shows that profits and beneficiaries of money creation depend on the monetary order and on the accounting rules of the central bank. Due to the possibility to create scriptural money by credit in almost unlimited quantity today the main beneficiaries of the creation of money are the commercial banks. If in a new monetary order, the right to create money in limited quantity is transferred exclusively to the central bank and its accounting rules are properly adapted, substantial conversion profits arise which can be used to pay off the major part of the public debt and to fund the state without affecting monetary stability. To demonstrate the possible effects the conversion profits and future profits of money creation are calculated for the Euro-system from the consolidated balance sheet 2010.

scholarly journals Can the Central Bank Alleviate Fiscal Burdens?

2019 ◽  
pp. 130-170
Author(s):  
Ricardo Reis
Keyword(s):  
Central Bank ◽  
Public Debt ◽  
Balance Sheet ◽  
Central Banks ◽  
Resource Constraint ◽  
Income Risk ◽  
The Real ◽  
The Public ◽  
The Government ◽  
The Impact

Central banks affect the resources available to fiscal authorities through the impact of their policies on the public debt, as well as through their income, their mix of assets, their liabilities, and their own solvency. This chapter inspects the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource constraint. It discusses five channels: (i) how inflation can (and cannot) lower the real burden of the public debt, (ii) how seigniorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv) how central bank assets create income risk and whether or not this threatens its solvency, and (v) how the central bank balance sheet can be used for fiscal redistributions. Overall, it concludes that the scope for the central bank to lower the fiscal burden is limited.

Adapting to Expectations

2013 ◽  
Author(s):  
Brigitte Granville
Keyword(s):  
Public Debt ◽  
World Economy ◽  
Inflation Targeting ◽  
Academic Research ◽  
Balance Sheet ◽  
Inflation Risk ◽  
The Public ◽  
The World ◽  
Future Value ◽  
Value Of Money

This chapter considers the possible application of academic research to address the dire predicament of balance sheet recession and chronic stagnation characterizing large parts of the world economy since 2007. Contemporary policymakers have striven to stimulate demand despite huge debt overhangs and without undermining confidence in the future value of money or sustainability of the public finances and debt. However, as the analysis in the book has shown, excess public debt is fraught with future inflation risk. It highlights two characteristics underlying the best thinking about inflation: adaptation and remembering. It then addresses the question of how inflation targeting might be usefully applied to the post-2007 problems of recession and stagnation against a background of excessive indebtedness.

scholarly journals Central Banks

2021 ◽  
pp. 11-28
Author(s):  
Ulrich Bindseil ◽  
Alessio Fotia
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Balance Sheet ◽  
Banking System ◽  
Central Banks ◽  
Reserve Requirement ◽  
Money Creation ◽  
Reserve Banking ◽  
Bank Money

AbstractThis chapter develops further the role of a central bank and its interplay with commercial banks. Together, the two ensure the provision of liquidity to the economy, such that the real sectors are shielded from flows of funds originating from household and investors. We also disaggregate the banking system into two banks to represent deposit flows between banks and their impact on the central bank’s balance sheet, and to distinguish between what we call “relative” and “absolute” central bank intermediation. We then integrate deposit money creation by commercial banks into our system of financial accounts, and revisit some old debates, such as the limits of bank money creation and the role of related parameters that the central bank can set (not only the reserve requirement ratio, but also the collateral framework). Finally, we explain the concepts of “plain money” and “full reserve banking” within the financial accounts, and also discuss in this framework the recent proposals regarding central bank digital currency (CBDC).

Regeln, Willkür und der gute Ruf: Geldpolitik und Finanzmarkteffizienz in Deutschland, 14. bis 16. Jahrhundert

2009 ◽  
Vol 50 (2) ◽  
Author(s):  
Oliver Volckart
Keyword(s):  
Central Bank ◽  
Financial Markets ◽  
Market Performance ◽  
Monetary Policies ◽  
Monetary Stability ◽  
Functional Equivalent ◽  
The Right

AbstractThis paper examines the questions of whether and how feudal rulers were able to credibly commit to monetary stability, and of which consequences their decisions had for the efficiency of financial markets. The study reveals that princes were usually only able to commit to issuing a stable coinage in gold, but not in silver. As for silver currencies, the hypothesis is that transferring the right of coinage to an autonomous city was the functional equivalent of establishing an independent central bank. An analysis of market performance indicates that financial markets between cities that were autonomous with regard to monetary policies were significantly better integrated and more efficient than markets between cities whose currencies were supplied by a feudal ruler.

Notwendigkeit, Regelungen und Konsequenzen einer neuen Geldordnung

2014 ◽  
Vol 63 (1) ◽  
Author(s):  
Timm Gudehus
Keyword(s):  
Public Debt ◽  
Substantial Reduction ◽  
Payment Systems ◽  
Negative Effects ◽  
The Public ◽  
Monetary System ◽  
Open Questions ◽  
Monetary Order ◽  
Alternative Solutions ◽  
Further Development

AbstractFrom an analysis of the uncertainties, deficiencies and negative effects of the present monetary system the necessity and the requirements for a new monetary order are derived. These requirements are fulfilled by the presented regulations of a monetary order, which is based on the proposals of Joseph Huber (Vollgeld), Henry Simons and Irving Fisher (100 %-Money), Milton Friedman (Chicago Plan) and others (Allais, 1988; Gödde, 1985; Benes / Kumhof, 2013). The new monetary order requires another cash management, adapted payment systems and a different monetary policy of the central bank. Results of the new monetary order are legally protected money, no bank runs, a substantial reduction of the public debt, self-regulated smoothing of economic and stock market cycles, stabilization of the monetary union and other advantages for the economy. By also addressing open questions and alternative solutions this paper intends to stimulate a discussion of the proposals and the further development of a new monetary order.

scholarly journals Japan's Public Sector Balance Sheet

2019 ◽  
Vol 19 (212) ◽  
Author(s):  
Yugo Koshima
Keyword(s):  
Public Sector ◽  
Interest Rates ◽  
Public Debt ◽  
Population Aging ◽  
Balance Sheet ◽  
Debt Management ◽  
Net Worth ◽  
The Public ◽  
Low Interest Rates ◽  
High Level

This paper compiles and reviews the evolution of Japan’s Public Sector Balance Sheet (PSBS). In the past, large crossholdings of assets and liabilities within the public sector played a role in sustaining a high level of public debt and low interest rates. The Fiscal Investment and Loan Fund (FILF) channeled all postal deposits and pension savings to financing of public sector borrowing. After the FILF refrom in 2000, however, the Post Bank and pension funds shifted their assets to the portfolio investments and are seeking to maximize risk-adjusted returns. This has changed the implications of crossholdings for public debt management. In the future, population aging is expected to add more pressures on the PSBS, which already saw a considerable decrease of net worth over the last three decades.

scholarly journals The Effect of the New Lease Accounting Rules under IFRS 16 on the Financial Reporting of Russian Companies

2021 ◽  
pp. 4-11
Author(s):  
K.O. Zotova ◽  
◽  
S.N. Karelskaia ◽  
Keyword(s):  
Financial Reporting ◽  
Power Plants ◽  
Balance Sheet ◽  
Retail Stores ◽  
Financial Reports ◽  
Accounting Rules ◽  
The Right ◽  
Almost All ◽  
The Impact ◽  
Lease Accounting

Renting is an important and widely used financial solution. Many companies rent a significant number of expensive objects, including cars, offices, power plants, retail stores and airplanes. In 2016 the IASB issued a new standard, IFRS 16 «Leases», replacing the old standard on leases, which entered into force on January 1, 2019. The standard did not make significant changes to the method of accounting for landlords, while tenants experienced a serious impact of the new standard. They now recognize almost all leases in the balance sheet by reflecting an asset that represents the right to use it for a certain period of time, and a financial liability. The article presents the results of the analysis of the financial reports prepared according to IFRS of Russian companies, revealing the impact of the introduction into force from 2019. IFRS 16 «Lease». According to the results of the study, it was revealed that the new rules for reporting leased property had a significant impact on the reporting indicators of tenants, reducing their liquidity. In addition, it was found that some companies, based on the specifics of the terms of lease agreements, reflected additional items in the balance sheet asset that disclosed the amounts of deposits and insurance payments.

scholarly journals Republic of Latvia

2019 ◽  
Vol 19 (264) ◽  
Author(s):  
Keyword(s):  
Current Account ◽  
Public Debt ◽  
Balance Sheet ◽  
External Environment ◽  
Financial System ◽  
The Public ◽  
Current Account Deficits

The economy continued to expand rapidly in 2018, as growth surprised with a strong construction-driven upswing. Fiscal and current account deficits are at manageable levels, as is the public debt. The financial system remains stable, despite a significant balance sheet restructuring of banks servicing foreign clients. The growth outlook is favorable, but risks weigh on the downside due to a less supportive external environment.

The end of Alchemy of Finance and Sovereign Money (on the books by M. King “The end of Alchemy: Money, Banking and the Future of the Global Economy” and by J. Huber “Sovereign Money. Beyond Reserve Banking”)

2017 ◽  
pp. 131-141 ◽  
Author(s):  
V. Yefimov
Keyword(s):  
Economic Policy ◽  
Central Bank ◽  
Institutional Theory ◽  
Money Supply ◽  
Government Spending ◽  
Global Economy ◽  
Private Banks ◽  
Money Creation ◽  
Ministry Of Finance ◽  
Reserve Banking

The review discusses the institutional theory of money considered in the books by King and Huber, and the conclusions that follow from it for economic policy. In accordance with this theory, at present the most of the money supply is created not by the Central Bank but by private banks. When a bank issues a loan, new money is created, and when the loan is repaid this money is destructed. The concept of sovereign money involves the monopoly of money creation of the central bank. In this case the most of newly created money is handed over to the ministry of finance to implement government spending.

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