The scourge of green monetarism

The idea of full reserve banking (under various names) has been adopted by parts of the green and ecological movements (e.g. Green Party of England and Wales). The paper argues that full reserve banking (FRB) would represent a ‘green monetarism’. As with monetarism, FRB would focus on inflation and its control through the money supply. FRB would face problems with the control of the effective money supply as other means of payment developed. Its major problem would though come from the connection which would be established between the budget deficit and changes in the money supply. Fiscal policy would become completely subordinated to the control of the money supply. There is no reason to think that it would enable fiscal policy to be set in a manner conducive to high levels of employment, and at times would lead to substantial unemployment, and at others to ‘overheating’ of the economy. Through denying fiscal policy’s role as an ‘automatic stabiliser’, full reserve banking would be a force for instabilities.

Mathematical Model of Synchronous Generator without Damper Windings which is Equipped with an Automatic Stabiliser

The models of the synchronous generator for calculating the steady-state and transient regimes including the transients of stator windings of generator without damper windings have been presented. The ability to use different mathematical approximations of the generator models depending on the spatial distance of the disturbance point has been shown. The examples of the generator models without damper windings which is equipped with an automatic stabilizer have been given. To determine the currents and voltages as functions of time the state-space technique and Park – Gorev transformation have been used. Solutions are obtained by means of the program called integrated environment MathCAD Runge-Kutta method.It is possible to use these models in networks containing synchronous generators and also for the design of objects containing generators.

A Note on the Relation between Government Expenditure and Receipts in Italy: A Quarterly Analysis

A precise knowledge of the relation between government expenditure and revenues may be useful to control budget deficits because, if there is interdependence, raising taxes to reduce deficits may lead directly to more spending. An effective manipulation of central government spending and tax revenues requires information on the direction of causality between these economic variables.The purpose of this paper is to investigate the relationship between government expenditure and receipts based on quarterly data, using the structural cointegration approach of Pesaran and Pesaran [1997]. In the results presented below, the structural cointegration approach provides evidence of a long and short-run equilibrium between government spending and receipts, supporting the assumption that the Italian Government’s expenditure is a sort of automatic stabiliser as opposed to Wagner’s Law.

Tax revenue as an automatic fiscal stabiliser: A South African perspective

The many practical economic and political difficulties encountered in discretionary fiscal stabilisation policy highlight the potential benefits of allowing automatic fiscal stabilisers to operate over the cycle. This article investigates the relevance of tax revenue as an automatic fiscal stabiliser in the South African economy by an empirical analysis of its role and impact since the 1970s. The study finds that cyclical changes in tax revenue are relatively small and provide no significant evidence of automatic stabilisation; however, the potential of this tool as an effective automatic fiscal stabiliser in South Africa cannot be overlooked as results show a high correlation between the output gap and automatic stabiliser estimates. Automatic fiscal stabilisers were employed symmetrically over the cycle and results showed that automatic fiscal stabilisers became increasingly important towards the end of the sample period.