Search

Money is both the medium for transaction and the most liquid asset for banks. We examine both roles of money in an integrated framework, where banks are subject to aggregate illiquidity risk. An active central bank can replicate the constrained efficient allocation, which, however, cannot be implemented in the market equilibrium: due to moral hazard problems, banks invest excessively in illiquid assets, forcing the central bank to provide liquidity at low interest rates. An interest rate policy aiming to reduce systemic liquidity risk is dynamically inconsistent. Instead, the constrained efficiency can be achieved by imposing ex ante liquidity coverage requirement. [ABSTRACT FROM AUTHOR]

This article investigates the meeting of two monetized economies and how producing a "commodity money" nurtured forms of violence. This case presents an opportunity to rethink why economies monetize and how that relation fits into coercive, violent foundations of an emerging capitalist system. Money is important for understanding early capitalism, as Marx suggested that money is the first form of the appearance of capital. Money masks the social nature of labor, a fiction that not only creates conditions for capitalism, but is violent by wrenching the self from social bonds. Archaeological examples illustrate relationships of money with corporeal and social violence in the Izalcos region of colonial Guatemala, part of today's western El Salvador. The early colonial market relied on exploiting inequalities as well as the predictability of native production. A stable currency based on cacao as small coin buffered the awkwardness and unpredictability of a volatile economy. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Latin American & Caribbean Anthropology is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

There are two main theories of banking which seem to be incompatible by nature. According to the first, banks intermediate money through their credit infrastructure but are not themselves able to create new money. By contrast, the second argues that banks do create money out of nothing in the process of lending their credit. Significantly, despite their contrasts, both theories conceptualize banking in functionalist terms as the financing of other people's indebtedness. In so doing, they relegate to the side-lines the fact that banks are in the business first and foremost to 'make money' for themselves as they leverage their unique market position as dealers of other people's debts. The article thus investigates the phenomenon of modern banking as the art of leverage. After showing the specificity of bank leverage relative to other forms of leverage across society, it delineates the fundamentals of a political economy of banking, money-making and debt finance. Finally, the article turns to an analysis of how contemporary banks make money and at once weave the infrastructure of financial markets through leverage-enhancing techniques rooted in repurchase agreements. [ABSTRACT FROM AUTHOR]

Robert W. Clower's article “A Reconsideration of the Microfoundations of Monetary Theory” (1967) deeply influenced the course of modern monetary economics. On the one hand, it questioned Don Patinkin's (1956) project to integrate monetary and Walrasian value theory. On the other hand, it was the fountainhead of the cash-in-advance modelsà laRobert J. Lucas (1980), one of the most widely used approaches to monetary theory since the 1980s. Despite this influence, Clower's project to integrate monetary and value theory remains an enigma. My paper intends to resolve it. This is a difficult task since Clower never completed the monetary theory outlined in his 1967 article. To overcome this difficulty, I characterise the intellectual context from which Clower's contribution emerged and have recourse to a reconstruction of his project. This reconstruction is based on the analysis of published and unpublished materials, written by Clower before and after the 1967 article. It is argued that Clower sought to elaborate a disequilibrium monetary theory whilst retaining the two pillars of Patinkin's integration, i.e., the introduction of money into utility functions and the real-balance effect. I trace the origins, account for the originality, and discuss the challenges of this project. [ABSTRACT FROM PUBLISHER]

I model the equilibrium risk sharing between countries with varying financial development. The most financially developed country takes greater risks because its financial intermediaries deal with funding problems better. In good times, the more financially developed country consumes more and runs a trade deficit financed by the higher financial income that it earns as compensation for taking greater risk. During global crises, it suffers heavier losses. Its currency emerges as the reserve currency because it appreciates during crises, thus providing a good hedge. I provide evidence that financial net worth plays a crucial role in understanding this asymmetric risk sharing. (JEL E44, F14, F32, G01, G15, G21) [ABSTRACT FROM AUTHOR]

This article examines the effects of money on product quality, as well as the price pattern of heterogeneous quality goods, in a search-theoretical monetary model with divisible money and divisible commodities. We establish the existence and uniqueness/multiplicity of monetary equilibrium in several different cases. The steady-state equilibrium of our model displays several properties that are absent or distinct from those of previous studies. In particular, we find that under egalitarian bargaining, the Friedman rule cannot achieve socially efficient allocation due to asymmetric information. We find that the price of informed high-quality goods is higher than the price of uninformed quality goods. We also find that an increase in inflation can improve product quality. ( JEL E40) [ABSTRACT FROM AUTHOR]

Decisions based on the expected value have two components: the probability and the value or utility that is often expressed in money. Regarding the first element, it can be pointed out that many decisions contain risk concerning the outcomes of the available options, i.e. concerning the probability of the occurrence of an event. Uncertainty refers, in most cases, to this part, but having said that, the second part, the amount of money, still matters in a decision-making situation. Since the research of the effect of the amount can be considered neglected compared to that of probabilities, I focused on the second component: on the role of the amount of money. The aim was to explore to what extent a 300 times difference in the amount affects the choice. [ABSTRACT FROM AUTHOR]

Using the data of 20 major Organization for Economic Co-operation and Development countries over time, this article documents new evidence on real equity and real currency prices: higher real returns in the home equity market relative to its foreign counterparts are generally associated with real home currency depreciation at monthly frequency, but this negative correlation breaks down or even reverses during times of relatively higher aggregate economic uncertainty or volatility. This article also argues that a long-run risks-type model with time-varying liquidity risk in stock markets can provide one plausible explanation for the time-varying correlation structure. ( JEL E43, F31, G12, G15) [ABSTRACT FROM AUTHOR]

A counterexample to the notion that money is memory is provided—one that relies on incomplete information. There exists an implementable allocation for it with money that is not implementable with memory. The result arises because money conveys only a limited amount of information about past actions, which can be beneficial in settings with incomplete information. [ABSTRACT FROM AUTHOR]

In order to shed light on the debate concerning the exiting of the Franc Zone area, we address the issue of the growth effects of currency misalignments in Sub-Saharan African countries. To this end, we first assess misalignments which we include in a growth equation while taking into account uncertainty and “jointness” between growth determinants using recent Bayesian inference techniques. More specifically, exchange rate regimes, as well as cross-sectional error dependence, will be explored. We thus demonstrate that the gain related to undervaluation is almost zero regardless of the exchange rate regime. [ABSTRACT FROM AUTHOR]

This article investigates whether the quantity theory of money is still alive. We demonstrate three insights. First, for countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best. Second, the fit markedly improves, when correcting for variation in output growth and the opportunity cost of money, using elasticities implied by the theories of Baumol-Tobin and Miller-Orr. Finally, a subsample characterised by the adoption of inflation targeting shows considerably less inflation variability, worsening the fit of a one-for-one relationship between money growth and inflation. [ABSTRACT FROM AUTHOR]

This article examines how Idlewild, the huge mansion of Sir Robert Ho Tung, reflects the Shavian paradoxes on philanthropy, inheritance, and legacies in Buoyant Billions. The Shaws visited Sir Robert at Idlewild on 13 February 1933 during their Empress of Britain world tour. The Chinese shrine inside the luxurious residence becomes the Chinese temple setting in Buoyant Billions, and Sir Robert, the famous Hong Kong industrialist and philanthropist, is the prototype of Bill Buoyant. This article recounts Shaw's Hong Kong visit to illustrate his unique perspective on money and its relation to the Life Force and Creative Evolution. [ABSTRACT FROM AUTHOR]

The importance of money in Shaw's plays needs no introduction, as many of his plays pivot around economic elements. The concrete expression of such elements, however, poses difficulties for many modern audiences/readers who, for example, do not know how the pound sterling was divided before decimalization. Another difficulty arising from the phraseology of money in Shaw's plays is the fact that inflation is not accounted for. At the same time, Shaw's prolific and long-lasting playwriting career, together with his personal ascent from a "downstart" to a wealthy, world-class author, create other economic discrepancies between how (much) money is represented in his dramatic canon over different periods-no wonder, given that Shaw produced plays through both world wars, the Belle Époque, and the Great Depression, events that brought about remarkable fluctuations in inflation alone. These two caveats parallel the two main purposes of this article. The first one is to provide a general, chronological guide to the value of money in Shaw's plays when contrasted with present-day terms; the second is to analyze how historical and personal changes shaped the author's concept of money and wealth, as expressed in the representation of both in dramatic form. [ABSTRACT FROM AUTHOR]

Mainstream economics has consistently ignored the iconography of currency, describing money ‘just’ as a commodity. The paper is going to investigate the economic and political significance of the representations of authority and nationality in currency describing how these representation support its acceptability. The aim of the analysis is double: to decipher the visual identity of currency and its contribution to the acceptance of money in day-to-day transactions, as well as to discuss the operational principles of the monetary system as they are uncovered in the iconography of money. By answering these questions, the paper is going to trace the theoretical presuppositions and the cultural stereotypes that inform the representation of economic value and national identity as they are articulated in banknotes and coins with a specific emphasis on the European Monetary Union and the recent financial crisis that is still affecting its periphery. [ABSTRACT FROM AUTHOR]

Throughout the c. 2,000-year period coins have been circulated in Britain, they have also been ritually employed, most notably as votive deposits. Focusing specifically on the understudied custom of the British coin-tree, whereby coins are ritually embedded into the barks of trees, this paper considers the coin's role and applicability as a deposit. It aims to demonstrate that our understanding of the coin's past, present and future ritual employment is not only aided by a consideration of economics and the coin's secular function; it would be utterly incomplete without it. [ABSTRACT FROM AUTHOR]

Most international financial market studies that compare across countries utilize the US dollar as the common numeraire. We explore the little studied question of the appropriate choice for the base currency and ask if currency choice can affect the final conclusion of whether predictability exists. We provide empirical results for stock return predictability that demonstrate the importance of the numeraire. For example, the existence (absence) of predictability for a US investor does not necessarily imply the existence (absence) of predictability for other foreign investors. [ABSTRACT FROM PUBLISHER]

The article discusses a roadmap for monetary policy reforms and if the Federal Reserve has managed to contribute to the economic prosperity of the U.S. Topics include the Federal Reserve's track record, the major economic failures that occurred under the Fed's watch, the failure of the Fed to improve economic stability and the financial crisis of 2008.

The article discusses agendas related to monetary action and the need for sound money. Topics include fundamental monetary reform in the time of sky-high asset prices and measured economic growth, the importance of alternative monetary arrangements and the PhD Standard versus Classical Gold Standard.

The article discusses fixed-value monetary systems and its transitioning standards of value. Topics include the Soft Money approach who's goal is to price stability and full employment, the fixed-value system rule applied to the hard money approach, market based fixed-value systems and the transition between gold-based Currencies and floating fiat currencies.

The article discusses the economies of the gold standard and the Law and Legislations associated with it. Topics include historical gold standard and its dependence on custom-based law and legislation, understanding the the gold standard's success and the reasons why banknotes which were the first paper substitutes for coin cam into being.

Many economic phenomena, including flows of money, can be treated as manifestations of operation of specific networks. In contrast to the popularity of analyses of network structure and dynamics in sociology and physics, economic investigations concerning network approach in general and network properties of money in particular have not been popular until recently. This paper presents the concept of money as a network good and its features (complementarity, standardization, consumption externalities, switching costs, lock-in, dependence on social preferences and expectations and economies of scale in production). It is asserted that network theory of money may shed new light on such processes as monetary integration. [ABSTRACT FROM AUTHOR]

The article presents information on Italian mathematician Francesco Fuoco and discusses mathematical methods and calculations concerning economics. Other topics mentioned in this article include the role of the French revolution for economics, 18th century intellectual history and teaching, as well as the role of money and needs.

Copyright of Annales: Histoire, Sciences Sociales is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Money, gifts, and debts play a crucial role in Agnon's first novella, Vehaya heʾakov lemishor(And the Crooked Shall Be Made Straight; 1912), which tells the story of the bankruptcy of middle-class shopkeepers Menasheh Ḥayim and his wife Kreindel Tcharni in mid-nineteenth-century Galicia. Following Nietzsche's claim of the internalization of debt as the origin of monotheist religion, I read Agnon's novella as the literary construction of an analogy between capitalism and religious faith as two economic systems of debt and credit, destined for crisis. Framed this way, Menasheh Ḥayim's subsequent journey as a beggar brings up questions of sin, responsibility, and the hierarchy of monetary and divine debts. Whereas Menasheh Ḥayim's life is constructed via debts to external authorities, his death exchanged for his wife's life underscores that the debt to the human other functions in Agnon's novella as a gift which bypasses the economy of debt and credit. Read this way, Menasheh Ḥayim's death for an other against the demands of an external authority becomes a critique of both the traditional and modern Jewish subject, constituted through debt to religion or its modern substitutes such as capitalism or Zionism. [ABSTRACT FROM AUTHOR]

This article illustrates what would be the operational implications of a hypothetical demise of the euro. In order to do this, it examines what were the operational implications of establishing the euro and shows that the opposite endeavour would not just be its symmetric counterpart. The paper also looks at two developments that took place after the launch of the euro - the emergence of very large Target2 balances during the crisis that started in 2010 and the move towards financial integration - showing that they would add to the formidable operational complications that would be created by the demise of the euro. The paper concludes that the logistical difficulties considered here only look minor in comparison with the fundamental reasons that led governments and central banks to fight with determination the risk of a demise of the euro. In absolute terms, they are important enough to tilt the balance of costs and benefits in the direction of preserving the eurozone. [ABSTRACT FROM AUTHOR]

Monetary equilibrium often indicates stability in an economy. Most economic disturbances, at any stage of development, stem from breaking the equality between money and the value of goods. The focus of this paper is therefore on the analysis of monetary equilibrium within the context of the quantity theory of money and within the context of contemporary dimensions of economic systems that are, or are not exposed to shocks. The effect of interest and return is examined so as to defend the thesis that breaking monetary equilibrium is almost invariably the result of the subjective decisions of economic agents. [ABSTRACT FROM AUTHOR]

This work demonstrates how two functions of currency, its measure of value and its role as a means of release from debt, have been weakened. Currency no longer has labor as a visible model, nor can it adhere to exchange, leading to debt and reciprocal obligations. The measure of money is thus lost and its representation of value is altered or no longer exists; it tends to depend on a status determined by its purchasing capacity. This change, which is also related to confidence in and the power of money, consists of disregarding the debt surrounding the currency and exclusively prioritizing the realization of benefits. This phenomenon dates back to the subordination of the major international currency to private interests, which now seem to be the general will. [ABSTRACT FROM AUTHOR]

In contrast with Schumpeter's theory of credit and banking, expounded in definitive form inThe Theory of Economic Development, his theory of money took on successive forms over the years, starting with an attempt at its integration within the general equilibrium framework, and gradually assuming institutional traits, most notably in his posthumously published manuscript,The Theory of Money and Banking. This paper traces this evolution and explores the difficulties met when attempting to delimit the disciplinal field to which Schumpeter's ‘science of money’ pertains. [ABSTRACT FROM PUBLISHER]

This paper presents the main interpretations of the crisis that have been built within the mainstream general framework. Three theses are examined: the "money glut," the "saving glut," and "information asymmetry" à la Stiglitz. It is argued that the mainstream explanations suffer logical inconsistencies because of the restricted definition of uncertainty, while the explanation drawn from Keynes's and Minsky's ideas proves to be coherent thanks to their views on fundamental uncertainty. [ABSTRACT FROM AUTHOR]

This article begins by presenting the idea of money as a convention, first in the economics of conventions and then in post Keynesian economics, also examining whether and how one can reconcile money as a convention with Keynes's essential properties of money. The article then considers the view of money as a creature of the state, in two versions, which connect money to contracts or to taxes, respectively. Finally, it further explores the monetary foundations of a market economy, the conventional foundation of money, and the role of the state. Acknowledging that money is ultimately or fundamentally a convention requires recognizing limits to the state's ability to impose its money on the private agents. At the same time, the state is usually in a much better position than any private agent to influence the process through which the convention of acceptability of money emerges and is reproduced. A stronger proposition is that without state money there would be no stable money in a market economy. Both the fundamental conventionality of money and the essential role of the state can be thus emphasized. [ABSTRACT FROM AUTHOR]

The article discusses the economic impact of the changes in the way money is created. Topics discussed include the role of money in the in the increasing national and individual debt levels in the U.S. and Canada, the evolution of money into a desiring machine, and the improvement of monetary condition since commercial banks began offering loans.

With the recession raging on, state and local governments continue to look for innovative ways to save money and slash state and local government programs. Despite providing a public good to states and municipalities, the nonprofit, tax-exempt sector is no exception to state and local government's purview. One of the methods used by governments is to levy ad hoc, coerced payments in lieu of taxes ("PILOTs") on tax-exempt organizations. Major cities such as Boston, Philadelphia, and Madison have taken a myriad of approaches and, thus far, nonprofits have generally been on the weak side of the bargaining table. But what state, local, and federal constitutional challenges might a nonprofit make against the imposition of a PILOT? And what is a PILOT anyway: a tax, fee, contract, penalty, or some combination? This Article will explore those and other areas in an attempt to help entities effectively drive their own PILOT. [ABSTRACT FROM AUTHOR]

The sources cited within this issue are presented including "Handbook of Monetary Economics," Volume II by Andrew B. Abel, "An Integrated View of Tests of Rationality, Market Efficiency and Short-Run Neutrality of Monetary Policy," in the "Journal of Monetary Economics" and "The Allocation of Economic Resources," by Moses Abramovitz.

The article focuses on monetary policy and macroeconomic theory relating to sustainable economic growth and natural rates of interest. The author refers to the book ''The Theory of Money and Credit'' by Ludwig von Mises, published in 1912, and its discussion of the vital relationship between credit and money and the negative effects of a centrally controlled monetary system on a decentralized economy. The author discusses the various factors affecting natural rates of interest, including unemployment, entrepreneurship and the market rate and the digital revolution.

The article focuses on the importance of monetary freedom, the decreasing value of the U.S. dollar and the author's assertion that the U.S. Federal Reserve is unconstitutional. The author contends that the global financial system is reliant upon a false trust in the U.S. paper dollar, and that the purchasing power of the dollar is decreasing due to elevations in consumer prices. The author discusses various additional contributing factors that threaten monetary freedom and affect failing U.S. monetary policy, including the lack of congressional oversight, the danger of inflation and excessive governmental control regarding competition in currencies.

The article focuses on the importance of money reform, while exploring the economic and political aspects of fiat money. The author emphasizes that fiat money tends to lose it value over time and is not a reliable source of wealth. A brief history of the Bretton Woods system of monetary management is provided, along with former U.S. President Richard Nixon's decision to terminate the convertibility of the U.S. dollar in August of 1971 and the economic consequences that ensued. The author discusses the politicization of money and the vulnerability of fiat currencies being subject to political influence.

The European single currency system has come under unprecedented strain during the past three years and there is little reason to assume that this will diminish, in any significant way, in the near future. This article briefly explores the background to the current eurozone crisis before outlining a number of potential solutions. Specifically, we discuss how the credit crunch induced recession of 2008 triggered the problems within the eurozone regarding sovereign debt, looking at the issues of spill-over and free-rider effects, together with the implementation of EMU fiscal rules. The analysis is then extended by outlining a series of potential remedies. This consists of a critical evaluation of solutions that the EU has already instigated (i.e. moral persuasion, financial relief measures and debt default), together with a series of alternative propositions (i.e. fiscal federalism and a European Clearing Union) and even the collapse of the euro. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Administrative Sciences (John Wiley & Sons, Inc.) is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article adopts a cross-country perspective to analyse the short term effects of currency, banking and debt crises on the poverty headcount ratio and the poverty gap (as measured by the World Bank), employing multivariate fixed-effects panel data analysis. The findings suggest that currency crises most significantly exacerbate both the incidence and depth of poverty in the short run. Banking crises are associated with an increase in the depth of poverty but not the incidence while there is no direct effect of sovereign debt crises. Given the low level of significance, the results are far from conclusive and offer only partial indications of the crises-poverty nexus. [ABSTRACT FROM AUTHOR]

This paper examines some features of The General Theory that remain relevant 75 years after its publication. Keynes showed that even in a competitive economy with perfectly flexible prices, wages and interest rates, market prices could not guarantee full employment and that the achievement of full employment would only be a fluke. In other words, he showed that there was no natural mechanism to drive the economy to full employment, and that the level of employment was determined by effective demand rather than by the wage rate. He demonstrated this by using a method that stressed the relationship between cause and effect in determining key variables and relations in the economy. Keynes demonstrated that monetary variables affected real variables, and real variables affected monetary ones, in both the short run and long run. This can be contrasted with mainstream theory, where the long-run neutrality of money remains a key result. The paper proposes a rehabilitation of Keynes's analysis of the supply and demand for money—away from its original role in explaining domestic monetary influences and towards providing an analysis of supply and demand for international money. [ABSTRACT FROM PUBLISHER]