147 Chapter 5 South Africa's Experience with Inflation: A
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Bibliography
BIbLIOGRAPHY 2016 AFI Annual Report. (2017). Alliance for Financial Inclusion. Retrieved July 31, 2017, from https://www.afi-global.org/sites/default/files/publica- tions/2017-05/2016%20AFI%20Annual%20Report.pdf. A Law of the Abolition of Currencies in a Small Denomination and Rounding off a Fraction, July 15, 1953, Law No.60 (Shōgakutsūka no seiri oyobi shiharaikin no hasūkeisan ni kansuru hōritsu). Retrieved April 11, 2017, from https:// web.archive.org/web/20020628033108/http://www.shugiin.go.jp/itdb_ housei.nsf/html/houritsu/01619530715060.htm. About PBC. (2018, August 21). The People’s Bank of China. Retrieved August 21, 2018, from http://www.pbc.gov.cn/english/130712/index.html. About Us. Alliance for Financial Inclusion. Retrieved July 31, 2017, from https:// www.afi-global.org/about-us. AFI Official Members. Alliance for Financial Inclusion. Retrieved July 31, 2017, from https://www.afi-global.org/sites/default/files/inlinefiles/AFI%20 Official%20Members_8%20February%202018.pdf. Ahamed, L. (2009). Lords of Finance: The Bankers Who Broke the World. London: Penguin Books. Alderman, L., Kanter, J., Yardley, J., Ewing, J., Kitsantonis, N., Daley, S., Russell, K., Higgins, A., & Eavis, P. (2016, June 17). Explaining Greece’s Debt Crisis. The New York Times. Retrieved January 28, 2018, from https://www.nytimes. com/interactive/2016/business/international/greece-debt-crisis-euro.html. Alesina, A. (1988). Macroeconomics and Politics (S. Fischer, Ed.). NBER Macroeconomics Annual, 3, 13–62. Alesina, A. (1989). Politics and Business Cycles in Industrial Democracies. Economic Policy, 4(8), 57–98. © The Author(s) 2018 355 R. Ray Chaudhuri, Central Bank Independence, Regulations, and Monetary Policy, https://doi.org/10.1057/978-1-137-58912-5 356 BIBLIOGRAPHY Alesina, A., & Grilli, V. -
USA Metric System History Pat Naughtin 2009 Without the Influence of Great Leaders from the USA There Would Be No Metric System
USA metric system history Pat Naughtin 2009 Without the influence of great leaders from the USA there would be no metric system. Since many in the USA do not believe this statement, let me repeat it in a different way. It is my belief that without the influence of Benjamin Franklin, Thomas Jefferson, and George Washington, the metric system would not have developed in France in the 1780s and 1790s. The contribution made by these three great world leaders arose firstly from their cooperation in developing and implementing the idea of a decimal currency for the USA. The idea was that all money could be subdivided by decimal fractions so that money calculations would then be little more difficult than any normal whole number calculation. In 1782, Thomas Jefferson argued for a decimal currency system with 100 cents in a dollar. Less well known, he also argued for 1000 mils in a dollar. Jefferson reasoned that dividing America's First Silver Dollar decimally was the simplest way of doing this, and that a decimal system based on America's First Silver Dollar should be adopted as standard for the USA. The idea of using decimal fractions with decimal numbers was not new – even in the 1780s. Thomas Jefferson had studied 'Disme: the art of tenths' by Simon Stevin in which the use of decimals for all activities was actively promoted. Stevin proposed decimal fractions and their decimal arithmetic for: ... stargazers, surveyors, carpet-makers, wine-gaugers, mint-masters and all kind of merchants. Clearly Simon Stevin had in mind the use of decimal methods for all human activities and it is likely that this thought inspired Thomas Jefferson to propose not only a decimal currency for the USA but also a whole decimal method for weights and measures. -
1 from the Franc to the 'Europe': Great Britain, Germany and the Attempted Transformation of the Latin Monetary Union Into A
From the Franc to the ‘Europe’: Great Britain, Germany and the attempted transformation of the Latin Monetary Union into a European Monetary Union (1865-73)* Luca Einaudi I In 1865 France, Italy, Belgium and Switzerland formed a monetary union based on the franc and motivated by geographic proximity and intense commercial relations.1 The union was called a Latin Monetary Union (LMU) by the British press to stress the impossibility of its extension to northern Europe.2 But according to the French government and many economists of the time, it had a vocation to develop into a European or Universal union. This article discusses the relations between France, which proposed to extend the LMU into a European monetary union in the 1860’s, and the main recipients of the proposal; Great Britain and the German States. It has usually been assumed that the British and the Germans did not show any interest in participating in such a monetary union discussed at an international monetary Conference in Paris in 1867 and that any attempt was doomed from the beginning. For Vanthoor ‘France had failed in its attempt to use the LMU as a lever towards a global monetary system during the international monetary conference... in 1867,’ while for Kindleberger ‘the recommendations of the conference of 1867 were almost universally pigeonholed.’3 With the support of new diplomatic and banking archives, together with a large body of scientific and journalistic literature of the time, I will argue that in fact the French proposals progressed much further and were close to success by the end of 1869, but failed before and independently from the Franco-Prussian war of 1870. -
UK FINANCIAL HISTORY 1950 – 2015 Version FEBRUARY 2016 Operator Info
Document Info Notes Form SW55063 Job ID 57630 Size A4 Pages 1 Colour CMYK UK FINANCIAL HISTORY 1950 – 2015 Version FEBRUARY 2016 Operator Info 1 ALI 29/02/16 2 ALI 07/03/16 Barclays Equity Index £156,840 3 Dividends Reinvested 4 5 £100,000 6 Big Bang in the city London Olympics Interest rates hit 15% • 7 Northern Rock crisis • • 8 ECONOMIC INDICATORS Berlin Wall comes down Japanese• earthquake • • 9 30 Unemployment tops 3 million Bangladesh factory disaster RPI – annual % change (quarterly) • • 10 Stockmarket hits 62 England, Wales, Northern Ireland introduce smoking ban • Lockerbie disaster • 11 25 Bank base rates (quarterly avg.) • Scotland introduces smoking ban Bin Laden killed • • 12 First test tube baby born 20 GDP – annual % change (quarterly) • • ‘Black Wednesday’ stockmarket crisis Banking debt crisis hits UK Nelson Mandela dies 13 • • 14 15 London wins Olympic bid Greek bail-outs • UK gets £2,300 million from IMF • Single European Market begins • • 15 UK Interest Rates set at 0.5% Ebola outbreak Barclays Equity Price Index 10 • £9,558 £10,000 • Ex-Dividends Proof number 1 2 3 4 Barclays Gilt Index 5 Japanese interest rates at record low of 0.5% £8,631 • Ceasefire in Vietnam • Income Reinvested Mandatory checks 0 Poll Tax riots Hong Kong handover Plaza accord • Cyprus bail-out £5,554 UK Building Society Index • • • Income Reinvested -5 UK joins EEC News of World closes New Brand - use approved template (check size) • • War in Iraq Cuba/US• reconciliation Falklands War • • £3,058 Retail Prices Index Footer/Form number/version -
The Bank of England and Earlier Proposals for a Decimal ,Coinage
The Bank of England and earlier proposals for a decimal ,coinage The introduction of a decimal system of currency in Febru ary 1971 makes it timely to recall earlier proposals for decimalisation with which the Bank were concerned. The establishment of a decimal coinage has long had its advocates in this country.As early as 1682 Sir William Petty was arguing in favour of a system which would make it possible to "keep all Accompts in a way of Decimal Arith metick".1 But the possibility of making the change did not become a matter of practical politics until a decade later, when the depreciated state of the silver currency made it necessary to undertake a wholesale renewal of the coinage. The advocates of decimalisation, including Sir Christopher Wren - a man who had to keep many 'accompts' - saw in the forthcoming renewal an opportunity for putting the coin age on a decimal basis.2 But the opportunity was not taken. In 1696 - two years after the foundation of the Bank - the expensive and difficult process of recoinage was carried through, but the new milled coins were issued in the tra ditional denominations. Although France and the United States, for different reasons, adopted the decimal system in the 18th century, Britain did not see fit to follow their example. The report of a Royal Commission issued in 1819 considered that the existing scale for weights and measures was "far more con venient for practical purpose,s than the Decimal scale".3 The climate of public opinion was, however, changing and in 1849 the florin was introduced in response to Parliamentary pressure as an experimental first step towards a decimal ised coinage. -
This PDF Is a Selection from an Out-Of-Print Volume from the National Bureau of Economic Research
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The International Gold Standard Reinterpreted, 1914-1934 Volume Author/Editor: William Adams Brown, Jr. Volume Publisher: NBER Volume ISBN: 0-87014-036-1 Volume URL: http://www.nber.org/books/brow40-1 Publication Date: 1940 Chapter Title: Book IV, Part I: The Nature of the Disintegration Chapter Author: William Adams Brown, Jr. Chapter URL: http://www.nber.org/chapters/c5948 Chapter pages in book: (p. 1050 - 1069) Disintegration the of Xature The I Disintegration, FOUR BOOK CHAPTER 29 The Major Characteristics of the Period following September 1931 TheGold Standard (Amendment) Act of September 21, ended the brief history of the gold bullion standard in Great Britain. It inaugurated a period during which the pound sterling declined in terms of the dollar, the franc, and all other currencies which, through the mechanism of the international gold standard or otherwise, were kept in an un- changed and stable relation to these two currencies and to one another. The Concept of the Breakup of the Nucleus as opposed to the Concept of the Depreciation of Sterling This situation is simply described by saying that the pound sterling depreciated 'in terms of gold,' or still more simply that it 'depreciated.' In the use of these terms, which might be applied equally to the currencies of Peru, Spain, or Aus- tralia, there is a danger to clear thinking, not because they do not accurately describe the surface facts, but because they carry certain implications. To say that sterling has depre- ciated in terms of gold implies that nothing very serious has happened to gold as an international monetary standard, and that the international gold standard system continues to operate as before, with only the loss of one of its members. -
CURRENCY BOARD FINANCIAL STATEMENTS Currency Board Working Paper
SAE./No.22/December 2014 Studies in Applied Economics CURRENCY BOARD FINANCIAL STATEMENTS Currency Board Working Paper Nicholas Krus and Kurt Schuler Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise & Center for Financial Stability Currency Board Financial Statements First version, December 2014 By Nicholas Krus and Kurt Schuler Paper and accompanying spreadsheets copyright 2014 by Nicholas Krus and Kurt Schuler. All rights reserved. Spreadsheets previously issued by other researchers are used by permission. About the series The Studies in Applied Economics of the Institute for Applied Economics, Global Health and the Study of Business Enterprise are under the general direction of Professor Steve H. Hanke, co-director of the Institute ([email protected]). This study is one in a series on currency boards for the Institute’s Currency Board Project. The series will fill gaps in the history, statistics, and scholarship of currency boards. This study is issued jointly with the Center for Financial Stability. The main summary data series will eventually be available in the Center’s Historical Financial Statistics data set. About the authors Nicholas Krus ([email protected]) is an Associate Analyst at Warner Music Group in New York. He has a bachelor’s degree in economics from The Johns Hopkins University in Baltimore, where he also worked as a research assistant at the Institute for Applied Economics and the Study of Business Enterprise and did most of his research for this paper. Kurt Schuler ([email protected]) is Senior Fellow in Financial History at the Center for Financial Stability in New York. -
The Irish Pound from Origins To
Quarterly Bulletin Spring 2003 The Irish Pound: From Origins to EMU by John Kelly* ABSTRACT The history of the Irish pound spans seventy-five years, from the introduction of the Saorsta´t pound in 1927 to the changeover to euro banknotes and coin in 2002. For most of this period, the Irish pound had a fixed link to sterling. It was only in the 1970s that this link was seriously questioned when it failed to deliver price stability. This article provides a brief overview of the pound’s origins, before looking in more detail at the questioning of the sterling link and events leading up to Ireland joining the EMS. Although early experiences in the EMS were disappointing, membership eventually delivered low inflation, both in absolute terms and relative to the UK, and laid the foundations for the later move to EMU. The path to EMU is followed in some detail. This covers practical preparations, assessment of benefits and costs and necessary changes in monetary policy instruments and legislation. Finally, the completion of the changeover encompasses the huge tasks of printing and minting sufficient amounts of euro cash, of distributing this to banks and retailers, and of withdrawing Irish pound cash, as well as the efforts of all sectors to ensure that the final changeover from the Irish pound to the euro was smooth and rapid. 1. Introduction The Irish pound ceased to be legal tender on 9 February 2002. This brought down the final curtain on a monetary regime which had its origins some 75 years earlier with the introduction of the Saorsta´t pound in 1927. -
My Recollections of the Introduction of Botswana's Pula Currency on 23
A Special Issue on Botswana Notes and Records’ Golden Jubilee Volume in Honour of Sir Ketumile Masire My Recollections of the Introduction of Botswana’s Pula Currency on 23 August 1976 Derek Hudson∗ In 1975, the government of Botswana set up a Monetary Preparatory Commission to oversee the introduction of Botswana’s first ever currency. This was under the overall guidance of Quett Ketumile Masire (later Sir Ketumile Masire), the then Minister of Finance and Development Planning (MFDP). He in turn, was strongly supported by President Sir Seretse Khama. Since 1961, Botswana had used the South African rand as its currency, and before that the South African pound and the Cape Colony pound. In 1910 the Union of South Africa was established and it began to use the South African pound, which, like the Cape Colony pound, was on par with the British pound. Until 30 September 1966 Botswana was under British colonial control and called Bechuanaland Protectorate. In 1961, South Africa became left the Commonwealth to become a republic and replaced the pound with the rand, which automatically become the legal tender of Botswana. This was after it had been decided in principle that Botswana would have its own currency. This would allow Botswana, for the first time, to determine the value of its own currency and to set its own interest rates, instead of automatically copying whatever South Africa did. For the first time ever, Botswana could choose the designs for its own notes and coins. It would also allow Botswana to decide for itself how many, if any, of South Africa’s complex regime of exchange control regulations should be retained. -
University of Huddersfield Repository
University of Huddersfield Repository Cook, Andrew J. Britain’s Other D-Day: The Politics of Decimalisation Original Citation Cook, Andrew J. (2020) Britain’s Other D-Day: The Politics of Decimalisation. Doctoral thesis, University of Huddersfield. This version is available at http://eprints.hud.ac.uk/id/eprint/35268/ The University Repository is a digital collection of the research output of the University, available on Open Access. Copyright and Moral Rights for the items on this site are retained by the individual author and/or other copyright owners. Users may access full items free of charge; copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational or not-for-profit purposes without prior permission or charge, provided: • The authors, title and full bibliographic details is credited in any copy; • A hyperlink and/or URL is included for the original metadata page; and • The content is not changed in any way. For more information, including our policy and submission procedure, please contact the Repository Team at: [email protected]. http://eprints.hud.ac.uk/ BRITAIN’S OTHER D-DAY: THE POLITICS OF DECIMALISATION ANDREW JOHN COOK A thesis submitted to the University of Huddersfield in partial fulfilment of the requirements for the degree of Doctor of Philosophy The University of Huddersfield March 2020 CONTENTS Page Acknowledgements…………………………………………………………………………. 2 Abstract…………………………………………………………………………………………… 4 Chapter 1: Introduction…………………………………………………………………… 6 Chapter 2: Political Management…………………………………………………….. 50 Chapter 3: Britishness and Europeanisation…………………………………….. 92 Chapter 4: Modernity, Declinism and Affluence………………………………. 128 Chapter 5: Interest Groups………………………………………………………………. -
South Africa's Experience of Regional Currency Areas and the Use Of
South Africa’s experience of regional currency areas and the use of foreign currencies Lambertus van Zyl1 1. Introduction This paper focuses almost exclusively on South Africa’s current and potential experience of regional currency areas in the Common Monetary Area (CMA) and the Southern African Development Community (SADC). There is no evidence that foreign currency is being used in any meaningful way inside South Africa. Thus no official and very little unofficial dollarisation has taken place in South Africa notwithstanding significant exchange control liberalisation in recent years. On the contrary, the South African rand is used extensively as legal tender in other countries comprising the CMA while anecdotal evidence points to the rand being accepted as payment in some other countries in SADC. However, no statistics are available to corroborate the extent to which the rand is used outside the CMA. There are various regional integration initiatives involving the southern African region, each with its own programme of action. South Africa is not directly involved in all these initiatives. South Africa, for instance, is not a member of the Common Market for Eastern and Southern Africa or the Cross-border Initiative. However, as their objectives are focused on regional economic integration, they overlap with the objectives of regional initiatives to which South Africa actively subscribes, such as the recent decision by African heads of state on the creation of an African Union and a common monetary bloc as well as the Southern African Customs Union. Of most relevance to this paper, however, is South Africa’s membership of the CMA with Lesotho, Swaziland and Namibia. -
Practical Issues Arising from the Euro May 2002
Practical issues arising from the euro May 2002 Bank of England Practical issues arising from the euro Practical issues arising from the euro May 2002 05 FOREWORD 07 SUMMARY 15 PART I: COMPLETION OF THE EURO CHANGEOVER IN PRACTICE 15 The euro area 24 Austria 29 Belgium 34 Finland 38 France 44 Germany 49 Greece 53 Ireland 60Italy 65 Luxembourg 69 The Netherlands 74 Portugal 78 Spain 84 PART II: LESSONS FROM THE EURO CHANGEOVER 84 A: THE ORGANISATION OF THE CHANGEOVER 85 B: THE COMPLETION OF THE NON-CASH CHANGEOVER 86 Box: Lessons from the conversion weekend 87 Accounts 90Payments 92C: THE CASH CHANGEOVER 92 Prior distribution of euro cash 94 Box: Frontloading: payment and collateral 96 Box: Contrasting approaches to sub-frontloading 97 Starter kits 100 Cash at banks 103 Cash at retailers 104 Cash for tickets and vending machines 105 Withdrawal of legacy cash 106 Box: Contrasting approaches to the withdrawal of legacy cash 107 Box: Defacement of legacy banknotes 108 D: COSTS AND BENEFITS OF A QUICK CHANGEOVER 108 The timetable for the changeover 110The pace of the cash changeover 111 Box: Why was the cash changeover quicker in some countries than others? 112 Costs and benefits of a quick cash changeover Practical Issues Arising from the Euro: May 2002 3 114 E: OTHER ISSUES 114 The prevention of criminal activity 116 The information campaign 117 The attitude of the public 118 The impact on prices 119 Box: Euro-area HICP: evidence of euro changeover effects 120Changeover costs and charges 124 PART III: LESSONS FOR THE UK 124 A: SIMILARITIES