Politics, Central Bank, Monetary Regime and Government Bankruptcy

2021 ◽  
pp. 277-297
Author(s):  
Peter Bernholz
Keyword(s):  
World War I ◽  
Money Supply ◽  
Price Level ◽  
Developed Countries ◽  
Necessary Condition ◽  
Paper Money ◽  
Institutional Settings ◽  
The Great Depression ◽  
Monetary Regime ◽  
Sustained Inflation

The damages and suffering caused by inflation during the course of history are enormous. Still, the worst excesses of inflation occurred not before the 20th century. This development was a consequence of the further technical development of money from coins to paper money and book money together with changes in the monetary regime or constitution ruling supply and control of money. Sustained inflation has always been a mone-tary phenomenon in the sense that the increase of the money supply is a necessary condition for its occurrence. Moreover, if an increase of the money supply is permanently outstripping the growth of real gross domestic product it is also a sufficient condi-tion for inflation. But that is not the whole story. For it has still to be asked which are the factors and institutional settings that allow the excessive growth of the money supply. And here historical evidence provides a clear answer (Figure 1). During the rule of the gold and silver standards until the outbreak of the World War I or after the restoration of it until the Great Depression of the 1930s no upward trend of the price level, but only long-term swings can be observed. But after the demise of the convertibility of banknotes into gold at a fixed parity and thus the introduction on a discretionary paper money standard the price level rises dramatically even in the respective developed countries.

scholarly journals Convergence, trade and industrial policy: Argentina, Brazil and Uruguay in the international economy, 1900–1980

2006 ◽  
Vol 24 (1) ◽  
pp. 37-67 ◽  
Author(s):  
Luis Bértola ◽  
Gabriel Porcile
Keyword(s):  
World War I ◽  
Latin American ◽  
Developed Countries ◽  
The United States ◽  
The Great Depression ◽  
Industrial Sectors ◽  
Long Run ◽  
The Developed Countries ◽  
Pattern Of Specialization ◽  
Latin American Countries

AbstractThis paper discusses the economic performance of three Latin American countries (Argentina, Brazil and Uruguay) from a comparative perspective, using as a benchmark a group of four developed countries (France, Germany, the United Kingdom and the United States). The focus is on the relative performance within the region and between the Latin American countries and the developed countries in the period 1900–1980. The paper argues that Argentina and Uruguay benefited from a privileged position in international markets at the beginning of the 20th century and this allowed them to converge. However, they failed to adjust to the major long-run change in the pattern of world trade brought about by World War I and the Great Depression, which implied a persistent decline of their export markets. On the other hand, Brazil, after having been much less successful until 1930, grew at higher rates thereafter based on rapid structural change and the building up of competitive advantages in new industrial sectors. The more vigorous Brazilian policy for industrialization and export diversification may explain why Brazil succeeded in changing its pattern of specialization, while Argentina and Uruguay were locked in to the old pattern. A typology of convergence regimes is suggested based on the growth experience of these countries.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

Banking and Economic Growth in Sweden before World War I

1978 ◽  
Vol 38 (3) ◽  
pp. 650-680 ◽  
Author(s):  
Lars G. Sandberg
Keyword(s):  
Economic Growth ◽  
World War I ◽  
International Comparisons ◽  
Banking System ◽  
Commercial Banking ◽  
World War ◽  
Paper Money ◽  
History Of

The article sketches the history of Swedish commercial banking from 1656 until World War I, with special attention to the post-1850 period. Emphasis is placed on the relationships between economic growth and banking. International comparisons based on the quantitative measures developed by Rondo Cameron and Raymond Goldsmith are made. It is concluded that at all stages of its early industrialization Sweden had a remarkably large and efficient banking system. This, in turn, was largely the result of the general population's long experience with banking and paper money and their generally high levels of literacy and education.

scholarly journals Urban Agglomerations: Approaches to the Allocation and Delimitation

2020 ◽  
Vol 13 (1) ◽  
pp. 180-202
Author(s):  
E. V. Antonov
Keyword(s):  
Development Strategy ◽  
Developed Countries ◽  
Necessary Condition ◽  
Federal Law ◽  
Russian Science ◽  
Urban Agglomerations ◽  
Individual Approach ◽  
Population Migrations ◽  
The Russian Federation ◽  
Spatial Development Strategy

Currently, Russia has declared the need to develop a federal law “On urban agglomerations”; the development of urban agglomerations is declared as a necessary condition for ensuring economic growth and innovative development in the country. However, there are no evident approaches to the allocation and delimitation of urban agglomerations; the definitions given in the Russian spatial development strategy are very general. In this regard, the purpose of this article is to summarize the existing approaches to working with agglomerations in foreign and Russian science and practice. The article shows that in economically developed countries, the main approach to the allocation of agglomerations is functional, in which the area of interaction between the “core” of the agglomeration and its “hinterland” is determined, first of all, by the intensity of pendulum labor migrations; the functional approach is gradually transformed into a network approach, implying the polycentricity of agglomerations. The allocation and delimitation of agglomerations in a country can be based on a unified or individual approach. The article suggests using both options in Russia: a unified approach for improving statistical accounting of changes in the settlement system, which is close to the OECD methodology, and an individual approach for strategic planning and development of inter-municipal cooperation. The advantage of the OECD methodology is that there is no need to rely on the existing territorial boundaries of local self-government, which differ markedly across the subjects of the Russian Federation. It is also proposed to conduct a broad discussion of the approaches to the allocation and delimitation of agglomerations for the law “On urban agglomerations”; to improve the system of statistical accounting for pendulum population migrations, including in population censuses.

scholarly journals MODERN CONDITION AND DEVELOPMENT PERSPECTIVES OF THE TRANSPORT INFRASTRUCTURE IN UKRAINE

2021 ◽  
Author(s):  
Olena Komchatnykh ◽  
Svitlana Petrovska ◽  
Nataliia Redko
Keyword(s):  
High Speed ◽  
Western Europe ◽  
Life Quality ◽  
Developed Countries ◽  
Transport Infrastructure ◽  
Necessary Condition ◽  
Transport Services ◽  
Wide Range ◽  
Effective Development ◽  
Modern Condition

The article considers modern condition and development perspectives of transport at whole and the transport infrastructure of Ukraine. The basis of the country transport complex makes up its infrastructure, it joins manufacturing, users, suppliers and partners. Developed infrastructure affects not only effective and timely delivery of the products, but provides for decreased transport expenses. The beneficial geographical position of Ukraine, crossing the main transit ways between Europe and Asia, presence of active Black Sea ports, developed network of railroads, car roads and pipelines throughout the latitudinal and meridian directions create all predispositions for the transport branch development. The studies of the Ukrainian transport infrastructure and transport condition during last years evidence about non-stable dynamics, which is mainly related to economical and geopolitical crisis in the country as well as the COVID 19 consequences. Analysis of the freight transport by transport kinds shows increased volumes of car transport with decreased railway transport. The rise of the car transport share is connected to its advantages: mobility, possibility of delivery exactly to the destination, high speed of delivery, flexibility of the route choice, wide range of the shipment as well as provision of logistic services by cars. Exacerbation in the East has considerably decreased number of contracts between Ukrainian shipping companies and international partners related to the international transportation. First of all, the situation provides for decreased transportation volumes on the territory of Ukraine. The level of transport services to economic system and population of Ukraine is significantly lower than that one in the developed countries of the world. According to the car road characteristics, Ukraine has long been behind not only the countries of Western Europe, but many post-Soviet countries. A necessary condition of the effective development and managing crisis in the transport branch, particularly that caused by the COVID 19 pandemics, is development and modernizing transport infrastructure of Ukraine according to the modern technological requirements. This will provide for uniform development of all regions of Ukraine, improved population life quality, development of trade and tourism as well as creation of new economic opportunities by attracting foreign investment.

scholarly journals Impacts of Monetary Policy on Inflation in Bangladesh

2012 ◽  
Vol 1 (2) ◽  
pp. 103-119
Author(s):  
Mohammad Nayeem Abdullah ◽  
Kamruddin Parvez ◽  
Rahat Bari Tooheen
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Consumer Price Index ◽  
Developed Countries ◽  
Open Market ◽  
Major Transitions ◽  
Classification Code ◽  
Inflation Rates ◽  
The Developed Countries ◽  
The Impact

The objective of this paper is to analyze and discuss the impacts of monetary policy on Bangladesh inflation, identify the major drawbacks of the policies in minimizing the inflation rate and suggest policy recommendations on some key issues of Bangladesh inflation. To estimate the effects of the monetary policy in Bangladesh, at first the impact of different monetary policy tools used by the “Central Banks” of the developed countries have been reviewed. Next, the impact of the monetary policy of Bangladesh Bank and government have been analyzed for which the data on money supply, growth of the GDP, changes in the price level, and changes in the unemployment rate have been quantitatively analyzed. We mainly used Consumer Price Index to determine the level on inflation in Bangladesh. Moreover, our study focuses on data collected from the 1950-2012, mainly focusing our study from the period of 2000-2012 as major transitions have been observed in the economy during the 12 years. We have further analyzed whether there is any correlation between (i) inflation rates and money supply, and (ii) inflation rates and growth of GDP. On the basis of the outcome of the qualitative and quantitative analysis, in the end findings and conclusion have been drawn. We have found the correlation, the impacts of monetary policy and inflation, their drawbacks and possible solutions such as independence of the monetary policy from the fiscal policy and enhancing the transparency, communication and signaling effect of policy moves, keeping the broad money in line with the estimated real GDP growth, borrowing from non-bank sources, and control money supply through various open market operations. Due to lack of access to sufficient data, some of our work is based on hypothesis and models. So some data vary according to the model being used. Lastly, even though, many works have been done from the perspective of developed and other developing countries, much work has not been carried out to establish the relationship between monetary policy and inflation in Bangladesh. GEL Classification Code: E31; E42; E50

ALTERNATIVE MONETARY POLICIES IN A TURNPIKE ECONOMY

2010 ◽  
Vol 14 (5) ◽  
pp. 727-762 ◽  
Author(s):  
Rodolfo Manuelli ◽  
Thomas J. Sargent
Keyword(s):  
Money Supply ◽  
Optimal Policy ◽  
Optimal Allocation ◽  
Price Level ◽  
Optimal Rate ◽  
Pareto Optimal ◽  
Monetary Policies

This paper modifies a Townsend turnpike model by letting agents stay at a location long enough to trade some consumption loans, but not long enough to support a Pareto-optimal allocation. Monetary equilibria exist that are nonoptimal in the absence of a scheme to pay interest on currency at a particular rate. Paying interest on currency at the optimal rate delivers a Pareto-optimal allocation, but a different one than the allocation for an associated nonmonetary centralized economy. The price level remains determinate under an optimal policy. We study the response of the model to “helicopter drops” of currency, steady increases in the money supply, and restrictions on private intermediation.

War and the Next Lesson

Money ◽  
2017 ◽  
Author(s):  
John Kenneth Galbraith ◽  
James K. Galbraith
Keyword(s):  
United States ◽  
Monetary Policy ◽  
World War Ii ◽  
Fiscal Policy ◽  
World War I ◽  
Great Depression ◽  
The United States ◽  
World War ◽  
John Maynard Keynes ◽  
The Great Depression

This chapter examines the lessons of World War II with respect to money and monetary policy. World War I exposed the fragility of the monetary structure that had gold as its foundation, the great boom of the 1920s showed how futile monetary policy was as an instrument of restraint, and the Great Depression highlighted the ineffectuality of monetary policy for rescuing the country from a slump—for breaking out of the underemployment equilibrium once this had been fully and firmly established. On the part of John Maynard Keynes, the lesson was that only fiscal policy ensured not just that money was available to be borrowed but that it would be borrowed and would be spent. The chapter considers the experiences of Britain, Germany, and the United States with a lesson of World War II: that general measures for restraining demand do not prevent inflation in an economy that is operating at or near capacity.

Higher Than Sight Can Reach

2021 ◽  
pp. 184-207
Author(s):  
Benjamin Hoy
Keyword(s):  
World War I ◽  
Indigenous People ◽  
Great Depression ◽  
Immigration Law ◽  
World War ◽  
Popular Resistance ◽  
Indigenous Resistance ◽  
Immigration Laws ◽  
The Great Depression ◽  
Jay Treaty

Chapter 9 follows the Canada–US border’s development from 1900 until the 1930s. It surveys the Alaska Boundary Survey, World War I, Prohibition, the Great Depression, and Indigenous resistance to new immigration laws. In the 1920s, the Indian Citizenship Act and National Origins Act extended federal immigration law over Indigenous people, resulting in resistance. Deskaheh (Levi General) gave speeches in Europe to garner support for the Haudenosaunee rights to self-governance. Clinton Rickard helped found the Indian Defense League of America to increase pan-Indigenous resistance to federal policy. Paul Diabo’s legal challenge to the Immigration Service’s interpretation of the Jay Treaty helped entrench Indigenous mobility as a fundamental part of the Canada–US border. As battles over citizenship and prohibition attested, increases in federal personnel did not give either country the ability to ignore popular resistance.

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