Inescapable Role of Real Currency Convertibility

The invention of paper money created a major new problem: how to ensure its value. Historically, the most reliable means of preserving and stabilizing the value of paper currency has been for those issuing paper money to guarantee to convert their notes, on demand, into real assets, at a specified rate of exchange. The most common asset used for this has been gold, which has been effective in preserving the value of currency over a century or more, but this has not prevented serious economic fluctuations. Consequently, for more than a century, economists have argued that it would be more effective to make currency convertible on demand into a range of commodities. Unfortunately, efforts to devise a means of achieving this have not succeeded to date.

Regulating Global Stablecoins and Central Bank Digital Currencies in Selected G20 Countries

Digitalization of the global economy, which has intensified during the COVID-19 pandemic, is leading to the development of digital currencies. Financial authorities in most countries are working to design regulation aimed at minimizing the risks associated with privately issued digital assets. At the same time, research is being carried out, and several pilot projects have been launched, on the use of central bank digital currencies (CBDCs)—a new payment instrument that can potentially contribute to stimulating innovations, expanding access to financial services, simplifying cross-border payments, and maintaining financial stability. In this article, the author examines the approaches of some G20 members to regulating CBDCs and global stablecoins (GSC)—a financial instrument pegged to real assets, which is a potential alternative to traditional fiat currencies. The author then identifies general tendencies in the approaches of the considered jurisdictions to regulation and proposes recommendations on intensifying the development of Russia’s national rules and norms in this area, primarily for GSC, and strengthening international cooperation.

MECHANISM FOR THE EFFECTIVE PREPARATION OF BUSINESS PLANS USING PRICING CRITERIA WHEN IMPLEMENTING INVESTMENT STRATEGIES IN THE INTERNATIONAL CAPITAL MARKET

The article analyzes the shortcomings related to the temporary disposal of income, income from real assets or financial investments in securities transactions, and the decisions made on the suitability of a particular project for investment. The issues of implementation of relevant opportunities for involvement were investigated. Favorable investment opportunities were assessed, issues of differentiation of capital investments, hierarchical system of world economic relations, investment efficiency and methodological issues of efficiency were analyzed. Keywords: securities, investment strategy, financial instruments, commercial efficiency, net discounted income, project risk accounting.

Investment Project Evaluation By Real Option Method: Example of Entrepreneurship Investment

The real option method, which emerged in the 1980s and is based on financial options, has been heavily involved in the literature since the early 2000s. Calculated by adding option value to investments in real assets, this method offers managers opportunities to evaluate the investment project. While the traditional capital budgeting method cannot be changed during the decision project process taken when evaluating the investment project, the real option method can be changed throughout the project process. The reason for this situation is that the real option method does not ignore the managerial flexibility. The reason for this situation is that the real option method does not ignore the managerial flexibility. In this study, these two methods in the literature are examined according to the types of projects.

The Wealth Inequality of Nations

Comparative research on income inequality has produced several frameworks to study the institutional determinants of income stratification. In contrast, no such framework and much less empirical evidence exist to explain cross-national differences in wealth inequality. This situation is particularly lamentable as cross-national patterns of inequality in wealth diverge sharply from those in income. We seek to pave the way for new explanations of cross-national differences in wealth inequality by tracing them to the influence of different wealth components. Drawing on the literatures on financialization and housing, we argue that housing equity should be the central building block of the comparative analysis of wealth inequality. Using harmonized data on 15 countries included in the Luxembourg Wealth Study (LWS), we demonstrate a lack of association between national levels of income and wealth inequality and concentration. Using decomposition approaches, we then estimate the degree to which national levels of wealth inequality and concentration relate to cross-national differences in wealth portfolios and the distribution of specific asset components. Considering the role of housing equity, financial assets, non-housing real assets, and non-housing debt, we show that cross-national variation in wealth inequality and concentration is centrally determined by the distribution of housing equity.

The Wealth Inequality of Nations

Comparative research on income inequality has produced several coherent frameworks to study the institutional determinants of income stratification. In contrast, no such framework and much less empirical evidence exist to explain cross-national differences in wealth inequality. This situation is particularly lamentable as cross-national patterns of inequality in wealth diverge sharply from those in income. We seek to pave the way for new explanations of cross-national differences in wealth inequality by tracing them to the influence of different wealth components. Drawing on the literatures on financialization and housing, we argue that housing equity should be the central building block of the comparative analysis of wealth inequality.Using harmonized data on fifteen countries included in the Luxembourg Wealth Study (LWS), we first demonstrate a lack of association between national levels of income and wealth inequality and concentration. Using decomposition approaches, we then estimate the degree to which national levels of wealth inequality and concentration relate to cross-national differences in wealth portfolios and the distribution of specific asset components. Considering the role of housing equity, financial assets, non-housing real assets, and non-housing debt, we reveal that cross-national variation in wealth inequality and concentration is centrally determined by the distribution of housing equity. (Stone Center on Socio-Economic Inequality Working Paper)

Lessons learned from a Ponzi game in Congo

To last, a Ponzi game requires a permanent flow of new lenders who get inserted into the system endlessly. In this paper, we show that, unlike Carlo Ponzi in Boston and Bindo Bolembé in Kinshasa (DRC), in the Salu Humberto Brada case in Congo Brazzaville, the debt of the borrower agent was also backed on real assets. This subdues the infinite horizon constraint of the scheme he implemented and shows how his Ponzi game could have gone on infinitely.

Real and Private-Value Assets

Real and private-value assets—defined here as the sum of real estate, infrastructure, collectibles, and noncorporate business equity—compose an investment class worth an estimated $84 trillion in the U.S. alone. Furthermore, private values can affect pricing in many other financial markets, such as that for sustainable investments. This paper introduces the research on real assets and private values that can be found in this special issue. It also reviews recent advances and highlights new research directions on a number of topics in the real assets space that we believe to be particularly important and exciting.

Teori Bank Syariah

The purpose of this research is to re-conceptualize the theory of Islamic banking according to the Al-Quran and Hadith. This research needs to be carried out considering that the operational activities of Islamic banks, especially in Indonesia, have been heavily criticized by academic researchers because there have been several deviations from Islamic banking activities that are not in accordance with the provisions of Islamic law. The method used in this research is the method of documentation and reviewing secondary data in the form of theories regarding Islamic banking. The analysis technique used is descriptive. Where the development of Islamic banking literature will be explained in a complete and structured manner so that it will produce an in-depth explanation. The results showed that the theory of Islamic banking is shaped like a building where the foundation of Islamic banking is faith-based on the Al-Quran and Hadith and carries out the characteristics of the Prophet Sallallaahu ‘Alaihi Wasallam. After the foundation is in place, it can run the rules of Islamic banking based on sharia which consists of prohibition of all usury practices, prohibition of financing maysir and gharar businesses, financing of real assets, sharing of profits and risk of loss. If sharia has been implemented in sharia banking, a pure sharia bank will be realized so that it will get the blessing of Allah Ta'ala.

Investment

The textbook includes theoretical material on the basics of investment activity, including the concept and essence of investments and their management, the subjects, objects, sources of financing and risks of investment activity are presented. The methodology for ensuring investment activity in real assets and the implementation of investments in financial assets, as well as the economic analysis of investment alternatives, is disclosed. Questions for self-control and situational tasks that complete each chapter will allow you to master the presented material as effectively as possible. Meets the requirements of the federal state educational standards of higher education of the latest generation. For full-time, part-time and part-time students in the areas of training 38.03.01 "Economics", 38.03.02" Management", 38.03.04"State and municipal management".