DOCSLIB.ORG

The Single Global Currency - Common Cents for the World (2008 Edition)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Single Global Currency - Common Cents for the World (2008 Edition) Munich Personal RePEc Archive The single global currency - common cents for the world (2008 Edition) Bonpasse, Morrison Single Global Currency Assn. 19 April 2009 Online at https://mpra.ub.uni-muenchen.de/14756/ MPRA Paper No. 14756, posted 21 Apr 2009 13:55 UTC THE SINGLE GLOBAL CURRENCY Common Cents for the World 2008 Edition Morrison Bonpasse This is ecopy #1 the 2008 edition Single Global Currency Association Newcastle, Maine REVIEWS AND COMMENTS “Morrison Bonpasse, president of the Single Global Currency Association, based in Newcastle, Maine, and one of the leading proponents of a universal currency, says...that globalization and monetary nationalism are a dangerous combination. ‘The bene- fits of a single global currency far outweigh the costs, so we should start planning now and avoid further risk and crises,’ he says.... ‘The world’s existing multi-currency system must be replaced, and the IMF should explore this idea,’ Bonpasse says. ‘The only reason the IMF exists is to help the world cope with floating exchange rates.’” Gordon Platt, in December 2007, Global Finance maga- zine article, “Universal Currency Could Hold Key to Stability and Growth—Single Global Currency.” “Your book deals with a very interesting topic with a long his- tory that has attracted numerous distinguished minds, includ- ing those of Gasparo Scaruffi, John Stuart Mill, John Maynard Keynes, James Meade, Milton Friedman, and Robert Mundell, among others. While some have been in favor of a single cur- rency, others against, all agree that there are costs as well as benefits associated with a single global currency, although they disagree as to their relative magnitudes. “Interesting as the debate is, this is not an area where the World Bank Group is likely to take a strong position. The Inter- national Monetary Fund has been designated as the lead agency in monetary issues and we customarily defer to them on issues that, like this, fall within the realm of their comparative advan- tage....” François Bourguignon Senior Vice President & Chief Economist World Bank, 8 June 2006, letter to the author “At Brown, Volcker discusses U.N. probe—As part of gradua- tion weekend activities, the former Fed chairman talks about the investigation he headed into the oil-for-food program in pre-war Iraq. “...The lecture, titled ‘Is the U.N. Up to Its Job?’ was among the commencement weekend activities. Brown also is awarding Volcker a doctorate of humane letters.... “At the end of his lecture, Volcker received a standing ova- tion and a request by a graduating senior for his autograph. “Then he picked up his paperback copy of Morrison Bonpasse’s The Single Global Currency, Common Cents for the World, put on his straw hat and prepared to walk.” From the Providence Journal Lynn Arditi, Providence Journal Staff Writer , Providence, Rhode Island, U.S., Sunday, 28 May 2006, at http://www.projo.com/cgi-bin/bi/gold_ print.cgi “...a remarkable new book advocating a single global currency.” James W. Dean, Professor Emeritus, Simon Fraser University, 13 October 2006 in a speech in Kyev, Ukraine, at http://www.carleton.ca/economics/ cep/cep06-07.pdf “...In The Single Global Currency: Common Cents for the World, Morrison Bonpasse, the founder and president of the Single Global Currency Association, presents a convincing case that it is a moral imperative for the world’s 191 nations to join together in a global monetary union and collectively save those economies trillions of dollars by adopting one common cur- rency. Offering readers a comprehensive, but accessible journey through this multi-layered issue, Bonpasse calls for the world to set a goal of making the transition to a single currency by 2024... “Bonpasse has a conversational style that brings the eco- nomic principles and numbers he uses to life. His stated narra- tive goal for the book is to ‘bring simplicity to a complex issue,’ and he is able to do this admirably throughout the course of 300-plus pages.... “Compared to the costs involved in creating and running this new system, the benefits he lists are impressive. He predicts that the primary benefit of the ‘euro-like’ single currency will be to promote international financial stability. Besides eliminating $400 billion in annual transaction costs, a single currency would, among other things, remove balance of payment prob- lems between countries, dispense with the high cost of main- taining foreign exchange reserves, reduce worldwide inflation, and vastly increase the value of the world’s assets. “Single Global Currency is an ambitious book—part history, part economics, part crusade for fairness—and the author does not hesitate to tell us why this issue should matter to every- body: ‘Money is made by human beings and used by all of them and should, therefore, be understood by everyone.’ The book also includes nearly a hundred pages of chapter endnotes, sup- porting references, appendices, web links, and bibliographic material about the issue. “Bonpasse is an ardent and unabashed champion of his cause, saying, ‘you may be reading the most important book you have ever read, because the topic will save the world— trillions.’ Although there are varying perspectives about the most critical challenges facing us on the planet today, this book makes an important contribution to understanding still more about the enormous benefits that would come from greater global cooperation.” Tatiana Brailovskaya Lincoln County Weekly, Maine, U.S., 26 April 2006 “...A single global currency would, according to Bonpasse, ben- efit the world’s economies by trillions of dollars since it would end transaction costs for currency trading and eliminate the need for and cost of maintaining foreign currency reserves while creating a dramatic one-time increase in global asset val- ues by removing risks of currency fluctuation. “Modeled on the Euro (the currency of the EMU, the Euro- pean Monetary Union) which it would replace along with all other currencies including the U.S. dollar, the new global cur- rency Bonpasse advocates ideally would eventually, if things were to go according to plan, become the single unifying unit of exchange, store of value, and unit of account for the entire world.... “Bonpasse’s book does a very good job explaining the costs and inconveniences of the current system of (mostly) national currencies and fluctuations in exchange rates among them. It offers reasonably plausible observations, largely based upon what success there has been so far in the development and use of the Euro, of how we might get there. It does not, however, dig very deep into the foundations of fiat money or how the mod- ern monetary system actually works and so does not engage very much the considerable obstacles on the way to the single global currency that Bonpasse promotes. “Control (or not) over its monetary system is a key element of the relative prestige and power of a nation. Monetary policies and options are intimately linked to economic, political, and military capabilities and so to national interest. Nations, espe- cially powerful nations, are no more likely to be willing to cede monetary control to an international organization than they are to cede political or military control. Absent a single global gov- ernment, no single global currency is likely to develop success- fully...”. Will Zachmann, Duxbury Clipper, Massachusetts, U.S., 17 May 2006 THE SINGLE GLOBAL CURRENCY Common Cents for the World 2008 Edition Morrison Bonpasse This is copy _________ of the 2008 edition. Single Global Currency Association Newcastle, Maine SINGLE GLOBAL CURRENCY ASSOCIATION Morrison Bonpasse, President P.O. Box 390 Newcastle, ME USA 04553 (001)-207-586-6078 [email protected] www.singleglobalcurrency.org Copyright © 2006 by Morrison Bonpasse Additions copyright © 2007 and 2008 by Morrison Bonpasse All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission from the publisher, except in the case of brief excerpts embodied in critical articles and reviews. For information, please contact Morrison Bon- passe at the address above. ISBN-13 978-0-9778426-3-6 SAN 850-5543 vi et us suppose that all countries had the same currency, Las in the progress of political improvement they one day will have.... So much of barbarism still remains in the transactions of the most civilized nations that almost all independent countries choose to assert their nationality by having, to their own incon- venience and that of their neighbours, a peculiar currency of their own. —John Stuart Mill, Principles of Political Economy with Some of Their Applications to Social Philosophy, 1848 vii CONTENTS Preface 2008 x 2006 Edition Preface xii Introduction xiv Part I: The Past to the Present 1. The Expensive, Complex, and Hazardous Multicurrency Foreign Exchange World 2 2. Coping With The Multicurrency Foreign Exchange System 51 3. Economists View the Pre-Euro Multicurrency System and Its Exchange Rate Regimes 78 Part II: The Present to the Future 4. Monetary Unions 99 PART III: The Future 5. The Single Global Currency: Origin, Benefits, and Costs 150 6. Economists View the Single Global Currency 201 7. How To Get There From Here 229 8. The Single Global Currency World-in 2024? 293 9. Conclusion 316 viii Appendix A. The Single Global Currency Association 321 Appendix B. What Citizens of The World Can Do 326 Appendix C. Author’s Afterword 332 Appendix D. Acknowledgments 339 Appendix E. Orders, Pricing, and Shipping 342 Bibliography 345 Index 387 Prices
Load more

Recommended publications
  • Programmheft 2019 Web - 5 Mb 4
    Lecture Sunday 2019-09-22 Monday 2019-09-23 Room Time 13:00 15:00 16:30 19:00 09:00 11:00 11:30 12:30 13:45 15:00 17:00 19:00 Foyer Coffee Breaks 10:30 - 11:00, 16:30 - 17:00 KN 1: Paulinum Opening M. Petrova PD Gossen PD PD Audimax Core Con- Award / Central DIW ference Thünen L. Banks Albertina WS WS WS Vortrags- Mentoring Mentoring Econ. saal for Women for Women Consulting Albertina WS Fürsten- DFG zimmer HS 9 HS 13 OM: A01 OM: B01 HS 14 OM: B02 Inv. Session: HS 15 Econ. Theory HS 16 OM: A02 OM: B03 HS 17 OM: A03 OM: B04 HS 18 OM: A04 OM: B05 HS 19 OM: A05 OM: B06 HS 20 S 202 OM: A06 OM: B07 S 203 OM: A07 OM: B08 S 204 OM: A08 OM: B09 S 205 OM: A09 OM: B10 S 210 OM: A10 OM: B11 S 211 OM: A11 OM: B12 S 212 OM: A12 OM: B13 S 213 OM: A13 OM: B14 S 214 OM: A14 OM: B15 S 215 OM: A15 OM: B16 S 220 OM: A16 OM: B17 S 221 OM: A17 OM: B18 S 222 OM: A18 OM: B19 S 223 OM: A19 OM: B20 S 224 OM: A20 OM: B21 S 225 OM: A21 OM: B22 S 226 OM: A22 OM: B23 Jobmarket Jobmarket Jobmarket Jobmarket Jobmarket Jobmarket Jobmarket S 227 Seminar Seminar Seminar Seminar Seminar Seminar Seminar S 228 OM: A23 OM: B24 S 229 OM: A24 OM: B25 Reception Ring-Café Selten Award Restaurant Reception Felix Neues Rathaus WS = Workshop KN = Keynote OM = Open Meeting PD = Panel Discussion Lecture Tuesday 2019-09-24 Wednesday 2019-09-25 Room 09:00 11:00 12:30 13:45 15:00 16:45 19:00 09:00 11:00 11:30 12:30 13:45 15:00 16:15 8:00 - 9:00 Info Event AvH / Breaks 10:30 - 11:00, 16:30 - 16:45 Coffee Break 10:30 - 11:00 Foyer Paulinum PD 18:15 PD KN 2: PD PD KN 3: PD Lokalorg.
    [Show full text]
  • A Study of Paul A. Samuelson's Economics
    Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author. A Study of Paul A. Samuelson's Econol11ics: Making Economics Accessible to Students A thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Economics at Massey University Palmerston North, New Zealand. Leanne Marie Smith July 2000 Abstract Paul A. Samuelson is the founder of the modem introductory economics textbook. His textbook Economics has become a classic, and the yardstick of introductory economics textbooks. What is said to distinguish economics from the other social sciences is the development of a textbook tradition. The textbook presents the fundamental paradigms of the discipline, these gradually evolve over time as puzzles emerge, and solutions are found or suggested. The textbook is central to the dissemination of the principles of a discipline. Economics has, and does contribute to the education of students, and advances economic literacy and understanding in society. It provided a common economic language for students. Systematic analysis and research into introductory textbooks is relatively recent. The contribution that textbooks play in portraying a discipline and its evolution has been undervalued and under-researched. Specifically, applying bibliographical and textual analysis to textbook writing in economics, examining a single introductory economics textbook and its successive editions through time is new. When it is considered that an economics textbook is more than a disseminator of information, but a physical object with specific content, presented in a particular way, it changes the way a researcher looks at that textbook.
    [Show full text]
  • Is the International Role of the Dollar Changing?
    Is the International Role of the Dollar Changing? Linda S. Goldberg Recently the U.S. dollar’s preeminence as an international currency has been questioned. The emergence of the euro, changes www.newyorkfed.org/research/current_issues ✦ in the dollar’s value, and the fi nancial market crisis have, in the view of many commentators, posed a signifi cant challenge to the currency’s long-standing position in world markets. However, a study of the dollar across critical areas of international trade January 2010 ✦ and fi nance suggests that the dollar has retained its standing in key roles. While changes in the global status of the dollar are possible, factors such as inertia in currency use, the large size and relative stability of the U.S. economy, and the dollar pricing of oil and other commodities will help perpetuate the dollar’s role as the dominant medium for international transactions. Volume 16, Number 1 Volume y many measures, the U.S. dollar is the most important currency in the world. IN ECONOMICS AND FINANCE It plays a central role in international trade and fi nance as both a store of value Band a medium of exchange. Many countries have adopted an exchange rate regime that anchors the value of their home currency to that of the dollar. Dollar holdings fi gure prominently in offi cial foreign exchange (FX) reserves—the foreign currency deposits and bonds maintained by monetary authorities and governments. And in international trade, the dollar is widely used for invoicing and settling import and export transactions around the world.
    [Show full text]
  • Biases of Professional Exchange Rate Forecasts: Psychological Explanations and an Experimentally Based Comparison to Novices
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Leitner, Johannes; Schmidt, Robert; Bofinger, Peter Working Paper Biases of professional exchange rate forecasts: Psychological explanations and an experimentally based comparison to novices W.E.P. - Würzburg Economic Papers, No. 39 Provided in Cooperation with: University of Würzburg, Chair for Monetary Policy and International Economics Suggested Citation: Leitner, Johannes; Schmidt, Robert; Bofinger, Peter (2003) : Biases of professional exchange rate forecasts: Psychological explanations and an experimentally based comparison to novices, W.E.P. - Würzburg Economic Papers, No. 39, University of Würzburg, Department of Economics, Würzburg This Version is available at: http://hdl.handle.net/10419/48447 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu W.
    [Show full text]
  • We Are All Horizontalists Now!« Interview with Basil Moore*,**
    Forum »We are all Horizontalists now!« Interview with Basil Moore*,** Basil, how did you come to economics? I was born in 1933, and so I am a product of the Great Depression of the thirties. My father had then lost his job and was selling apples on the street of Toronto. I was attracted to economics basically because I had heard so many stories about the depression, growing up as a boy in the 1930s. I was trying to fi gure out what had gone wrong and what we could do diff erently next time. Who were the economists that impressed you most? I was an undergraduate at Victoria College, University of Toronto, and had several good role models there. I then had to decide where to do my graduate work, and applied to eight diff erent universities. I was accepted at seven and I had to decide where to go. I was ac- cepted at Harvard, and sometimes I regret not going there, because it is the leading univer- sity in the States. But I went to John Hopkins University because they off ered me the larg- est fellowship. Hopkins was in its great years then, having Machlup, Kuznets and Domar as professors and Lerner and Patinkin as visitors. My doctoral supervisor was Fritz Machlup, a famous Austrian neoclassical micro- theorist. I am still kind of surprised about the topic I picked under Machlup: Th e Eff ects of Countercyclical Monetary Policy on the Earnings of Canadian Chartered Banks. My thesis was what we used to call a pot boiler, which is something to keep a chicken in the pot.
    [Show full text]
  • Virtual Currency Schemes of 2012
    VIRTUAL CURRENCY SCHEMES OCTOBER 2012 VIRTUAL CURRENCY SCHEMES OctoBer 2012 In 2012 all ECB publications feature a motif taken from the €50 banknote. © European Central Bank, 2012 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Website http://www.ecb.europa.eu Fax +49 69 1344 6000 All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. ISBN: 978-92-899-0862-7 (online) CONTENTS EXECUTIVE SUMMARY 5 1 INTRODUCTION 9 1.1 Preliminary remarks and motivation 9 1.2 A short historical review of money 9 1.3 Money in the virtual world 10 2 VIRTUAL CURRENCY SCHEMES 13 2.1 Definition and categorisation 13 2.2 Virtual currency schemes and electronic money 16 2.3 Payment arrangements in virtual currency schemes 17 2.4 Reasons for implementing virtual currency schemes 18 3 CASE STUDIES 21 3.1 The Bitcoin scheme 21 3.1.1 Basic features 21 3.1.2 Technical description of a Bitcoin transaction 23 3.1.3 Monetary aspects 24 3.1.4 Security incidents and negative press 25 3.2 The Second Life scheme 28 3.2.1 Basic features 28 3.2.2 Second Life economy 28 3.2.3 Monetary aspects 29 3.2.4 Issues with Second Life 30 4 THE RELEVANCE OF VIRTUAL CURRENCY SCHEMES FOR CENTRAL BANKS 33 4.1 Risks to price stability 33 4.2 Risks to financial stability 37 4.3 Risks to payment system stability 40 4.4 Lack of regulation 42 4.5 Reputational risk 45 5 CONCLUSION 47 ANNEX: REFERENCES AND FURTHER INFORMATION ON VIRTUAL CURRENCY SCHEMES 49 ECB Virtual currency schemes October 2012 3 EXECUTIVE SUMMARY Virtual communities have proliferated in recent years – a phenomenon triggered by technological developments and by the increased use of the internet.
    [Show full text]
  • O Robert Mundell Και Το Βραβείο Nobel Στα Οικονομικά
    SAE./No.178/April 2021 Studies in Applied Economics ROBERT MUNDELL, 1932-2021: AHEAD OF HIS TIME Miranda Xafa Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise Robert Mundell, 1932-2021: Ahead of his Time By Miranda Xafa About the Series The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, Founder and Co-Director of the Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise ([email protected]). About the Author Miranda Xafa started her career at the International Monetary Fund in Washington in 1980 and moved on to senior positions in government and in the financial sector. In 1991-93 she served as chief economic advisor to Prime Minister Constantin Mitsotakis in Athens, and subsequently worked as a financial market strategist at Salomon Brothers and Citigroup in London. After serving as a member of the IMF’s Executive Board in 2004-09, she is now a senior scholar at the Centre for International Governance Innovation (CIGI). She holds a Ph.D. in Economics from the University of Pennsylvania and has taught economics at the University of Pennsylvania and Princeton University. 1 I met Bob Mundell in Washington in 1982, when I was already working at the International Monetary Fund, at a conference on the international monetary system. My first impression was the absolute confidence with which he expressed his views. When one of the participants in his panel claimed that the data did not confirm his views, he responded: "If the data do not confirm my views, then the data are wrong." I had the chance to follow his life and career, and to participate in the conferences he organized and chaired in the last two decades in his beloved Palazzo Mundell in Tuscany where he lived.
    [Show full text]
  • Crises in Europe and Challenges for Economic Education
    Journal of Social Science Education © JSSE 2013 Volume 12, Number 2 ISSN 1 61 8-5293 Birgit Weber Editorial: Crises in Europe and Challenges for Economic Education Keywords: economic crisis, European crises, concepts, views and minds about European crises, economic education Since 2009 the European Union is facing a severe At such dynamically changing times, where eco- economic crisis. Does the current crisis reflect the nomy is affected by multiple crises and in which failure of the economic player or markets? Or does it also the discipline of economics critically reflects even reflect the failure of an entire economic system their limitations, it does not belong to the easiest inevitably culminating in speculative bubbles, tasks of economic education to provide with increasing economic inequality, always accompanied orientation, judgment, decision-making and action by severe crises? Or is it more of a failure of the according to economic situations, problems and political institutions that relinquished its power by phenomena. On the one hand, the crises generates the liberalization of financial markets, cancelling the quite considerable interest by their ubiquity, liability of financial institutions, becoming helpless particularly focusing on the other hand only on repair institutions of financial capitalism? Or is the fragments and dominant controversies of the European crisis “only” an extension of the global respective current situations. On the one hand, the financial crisis of 2008, which resulted in the rescue understanding of relationships and developments is of individual states, brought them to stumble complex and on the other hand, considerable themselves? Or does it just bring the design flaws of uncertainty and controversy of experts create the the European Monetary System to light? There is no impression of arbitrariness.
    [Show full text]
  • “The Effects of Local Currency Absence to the Banking Market: the Case for Zimbabwe from 2008”
    “The effects of local currency absence to the banking market: the case for Zimbabwe from 2008” AUTHORS Charles Nyoka Charles Nyoka (2015). The effects of local currency absence to the banking ARTICLE INFO market: the case for Zimbabwe from 2008. Banks and Bank Systems, 10(2), 15- 22 RELEASED ON Friday, 31 July 2015 JOURNAL "Banks and Bank Systems" FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org Banks and Bank Systems, Volume 10, Issue 2, 2015 Charles Nyoka (South Africa) The effects of local currency absence to the banking market: the case for Zimbabwe from 2008 Abstract Local currency based fee charges have always been one of the major contributors to bank profitability. A profitable banking market has more chances of stability compared to less profitable banking markets. The developments within the Zimbabwean on economy over the last six years merit more attention by researchers than has been given to it over the same period. Zimbabwe adopted a multicurrency approach to banking since the establishment of a government of national unity in 2008. To date the country has remained without a domestic currency a factor that seems to have con- tributed to the demise of some banks in Zimbabwe. Numerous press reports have indicated that Zimbabwean Banks are facing liquidity problems a factor that has culminated in the closer of and the surrendering of bank licences to authori- ties by at least nine banks to date.
    [Show full text]
  • The Pound Sterling
    ESSAYS IN INTERNATIONAL FINANCE No. 13, February 1952 THE POUND STERLING ROY F. HARROD INTERNATIONAL FINANCE SECTION DEPARTMENT OF ECONOMICS AND SOCIAL INSTITUTIONS PRINCETON UNIVERSITY Princeton, New Jersey The present essay is the thirteenth in the series ESSAYS IN INTERNATIONAL FINANCE published by the International Finance Section of the Department of Economics and Social Institutions in Princeton University. The author, R. F. Harrod, is joint editor of the ECONOMIC JOURNAL, Lecturer in economics at Christ Church, Oxford, Fellow of the British Academy, and• Member of the Council of the Royal Economic So- ciety. He served in the Prime Minister's Office dur- ing most of World War II and from 1947 to 1950 was a member of the United Nations Sub-Committee on Employment and Economic Stability. While the Section sponsors the essays in this series, it takes no further responsibility for the opinions therein expressed. The writer's are free to develop their topics as they will and their ideas may or may - • v not be shared by the editorial committee of the Sec- tion or the members of the Department. The Section welcomes the submission of manu- scripts for this series and will assume responsibility for a careful reading of them and for returning to the authors those found unacceptable for publication. GARDNER PATTERSON, Director International Finance Section THE POUND STERLING ROY F. HARROD Christ Church, Oxford I. PRESUPPOSITIONS OF EARLY POLICY S' TERLING was at its heyday before 1914. It was. something ' more than the British currency; it was universally accepted as the most satisfactory medium for international transactions and might be regarded as a world currency, even indeed as the world cur- rency: Its special position waS,no doubt connected with the widespread ramifications of Britain's foreign trade and investment.
    [Show full text]
  • Currency Considerations in the Zimbabwean Context 2018
    PUBLIC ACCOUNTANTS AND AUDITORS BOARD Currency considerations in the Zimbabwean context 26 February 2018 1 1. BACKGROUND 1.1. Zimbabwe witnessed significant monetary and exchange control policy changes in 2016 through to 2017. The changes were a result of continued economic challenges faced by the country that resulted in the liquidity crisis. In response, the RBZ promulgated a series of exchange control operational guidelines and compliance frameworks to alleviate the cash shortage and boost the economy. 1.2. The accountancy profession accepted the positive impact of these measures on entities but also noted some concerns that arose from this policy implementation on the financial reporting of entities in Zimbabwe, hence, this document. 1.3. The aim of this paper is to: I. lay out the functional currency considerations that preparers and auditors are having to make before year end reporting commences; II. outline the relevant International Financial Reporting Standards (IFRS) implications; and III. offer recommended guidance to preparers of financial statements with the intention of achieving fair and consistent presentation to the benefit of the users. 2. FUNCTIONAL CURRENCY CONSIDERATIONS 2.1. In 2009, Zimbabwe adopted the multi-currency system upon the abandonment of the Zimbabwean dollar (ZW$). For financial reporting purposes (presentation of the national budget and levying of taxes etc.) the government of Zimbabwe adopted the United States Dollars (“USD”) as the functional and reporting currency. Consequently, business also adopted the USD as the functional and reporting currency. 2.2. From the fourth quarter of 2015, there have been notable changes in the availability of foreign currency. This has resulted in a need to assess whether there has been a change in the functional currency.
    [Show full text]
  • The Monetary Economics of Basil J. Moore
    Mark Setterfield Editorial to the special issue: The monetary economics of Basil J. Moore March 2020 Working Paper 02/2020 Department of Economics The New School for Social Research The views expressed herein are those of the author(s) and do not necessarily reflect the views of the New School for Social Research. © 2020 by Mark Setterfield. All rights reserved. Short sections of text may be quoted without explicit permission provided that full credit is given to the source. Editorial to the special issue: The monetary economics of Basil J. Moore Mark Setterfield∗ March 23, 2020 Born in Toronto in 1933, Basil J. Moore (1933 – 2018) studied at the University of Toronto and Johns Hopkins University in Baltimore, where his doctoral research – on the impact of monetary policy on bank profits in Canada – was supervised by Fritz Machlup. He joined the faculty at Wesleyan University in Connecticut in the late 1950s, spending more than four decades of his career at Wesleyan before accepting a position as Professor Extraordinary of Economics at the University of Stellenbosch in South Africa in 2003. A monetary-macroeconomist who increasingly identified with Post-Keynesian economics as his career progressed, Moore is renowned as an advocate of endogenous money theory (EMT) and, in particular, the variant of EMT that he dubbed ‘horizontalism’. The core tenets of his thinking on endogenous money and its macroeconomic consequences are found in a series of articles and books published during the second half of his career. Many of these are well known in both academic and policy-making circles – none more so than Horizontalists and Verticalists: The Macroeconomics of Credit Money (Moore, 1988) which is, by popular repute, his magnum opus (see, for example, Bindseil and K¨onig (2013)).
    [Show full text]