MONETARY SYSTEM

1. Auflage 2014
ISBN: 978-1-118-86792-1
Verlag: WILEY

Buch, Englisch, Band 1, 312 Seiten, Format (B × H): 170 mm x 244 mm, Gewicht: 698 g

Reihe: Wiley Finance Series

The recent global financial crisis raised still-lingering questions on how to balance actions based on short-term decision making against the uncertainty of impending long-term change in the economic environment. The Monetary System outlines the conceptual basis required to build a new and more stable financial system, paving the way for a fiscal policy model that places emphasis on rotation rather than on inventories of financial instruments that would result in improved tax policies. In this important text, Jean-François Serval and Jean-Pascal Tranié explore the historical context of money and reveal how transactions work in today's global economic environment. The Monetary System is a compelling work that answers a number of key questions about our current financial situation: What underpinning of democratic society facilitated a transition to the economic realities of today? What were the major drivers that characterised the current economic impasse? How can one forecast future trends? What can be done to "fix" the present economic system? Based on exhaustive research, the book offers an overview to the present economic situation throughout the world that is defined by slow growth, rising debts, and low inflation. The authors envision a healthy economic future and put forward a new model for the global economy. The Monetary System is a comprehensive resource that gives banking professionals, as well as others interested in the topic, keen insight into our current economic situation and offers an understanding of the factors that can help shape a sound financial future.

Autoren/Hrsg.

Tranié, Jean-Pascal

Serval, Jean-François

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Geldwirtschaft, Währungspolitik

Inhaltsverzeichnis

List of Figures xiList of Tables xiiiAcknowledgements xvForeword And Introduction xviiChapter 1From Antiquity to Modern Times; Monetary Development Over 5000 Years. What History Explains and Comparison within New Contexts 1The Origin of Money; From Antiquity to Modern Times 1A Metallic System Allowing Intrinsic MeasurementStamping: Ingots to Coinage 2Grounding the Guarantees of Stamping: From an All-MetallicSystem to Paper Bills 3The Rise and Fall of Civilizations 5What Can We Learn from Ancient and More Modern History? 9Questions and Answers 11Chapter 2Modern Times - Liberation and Growth of the Money Supply. The Facts Presented in Monetary Units and Resulting Regulatory Needs 13Monetary Evolution Backed by Economic Growth 14Development of a Global Financial Market Economy 15Citizens Emerging in the Process of Financialization 20The Realities 20Causes Underlying Emerging Macroeconomic Realities 22Resulting Needs for Standardization, Regulation and Supervision 23Questions and Answers 25Chapter 3Past and 21st-Century Money Analysis 27Defining "Today's Money" 27Money Defined by its Functionality 27The First Function: Price Setting -Money as a Measurement Standard?]Based Source of Information 29The Second Function: A Payment and Trading Instrument 36The Third Function: A Reserve 36Links between Monetary Functions 37The Intrinsic Definition of Money 38A Trifunctional Monetary Support System 38How To Ground Trust In Money: Audited Financial Statements For Government and Central Banks 43Seignorage and the Privilege of Issuing and Stamping Money 43Traditional Seignorage in General 43The Modern Seignorage Privilege 44Legal Tender and Seignorage 47Evolution of Money into a Segregated Intermediation Tool with Imprecise Frontiers 47Linguistic Definition of the Word "Money" 47Money Today 48The Demise of Traditional Conceptual Approaches 50The Operational Scope of Money and its Use 52The Extension of Money with Disintermediation 53Direct Financing and Hedging of Risk 53Replacement of Bank Loan Financing by Securitization and the Impact of Pro-cyclical Effects 54The Origin of Securitization 54The Securitization Concept and Its Implementation 56Securitization Financing via Trust-Derived "Shadow Capital" Originating from Retirement Accounts, Direct Savings and Trade Deficits 58Guarantees on Receivables: A Securitization Multiplier 59Extending the Field of Debts and Guarantees 60Deviations from Effective Risk Control: The CDS Case 61Towards the Full Liberation of Money from Any Referential 62Guarantees and the Extension of Monetary Instruments Liberated from Unified Backing and Issuance Constraints 64Monetary Effects of Guarantees 65Shadow or Parallel Banking Systems 65Before Accounting for Any Transaction -The Sampling Topic. The Mix Up between Numbers and Formulae 70Questions and Answers 72Chapter 4The Contemporary Basis for Money Expression: Accounting Ledgers 77Book Balances are Either Money or Potential Money 77A Single Worldwide Language; Accounting and Financial Statements 78The Consistency-Based Principle of Bookkeeping 78The "Double-Posting" Principle 79Consequences of the Basic Accounting Principles 80Concepts and Rules to Report Exchanges and Determine the Image of Financial Statements 81The Image Presented by Financial Statements Influences the Analysis of Economic Data and Transactional Exchanges 88Direct Systematic Impact of Accounting Standards 91Double-Entry Consequence 91Value Consequence 91Where Misleading Standards Generate Distorted Images 91Valuation Incertitude in Accounting Standards 91The Appraisal Spark Plug that Drives a Continued "Fair Value" Crisis 92Monetary Aspects of Financial Statements 93The Necessary Approach in Accounting: A Hierarchy of Dangerousness 95Degrees of Contagion ("Interconnection") 96The Fair Value Conceptual Mistake Contributes to Instability and Distrust 97A Need for Mathematical Approaches 98Questions and Answers 99Chapter 5The Regulation and Observation Limits Already Accepted, Compared with the Realities of Modern Exchanges 103Monetary Regulation and Follow-up 103A Retrospective Analysis of Classic Money in Operation 103Governmental and Central Bank Monetary Operations 104Inception, Monopolies and Measurement Aggregates as Classical Mechanisms for Issuing Money 104Traditional Monetary Aggregates 105Monetary Aggregates in Central Banks 106Accepted Concepts that Complement Traditional Monetary Analysis - Limits and Evolution 107From the Known Money Multiplier through the Banking System to a New Perspective 107Traditional Regulatory Measures to Ensure Banks' Stability Limits 109Money Issuance through Central Bank Interventions 109The Investment Multiplier 110Following Up on Regulating Money Issuance in a Changed Economic Environment. Monetary Supervision: An Ancient Question 111The Present-Day Non-utility of Classical Aggregates 112New Forms of Monetary Exchange 114The Driving Role of Monetary Velocity 118Are Central Banks Prerequisite Institutions that Should Remain Independent from Sovereign Authority? 120New Policies to Stabilize the Banking System 125The Insufficiencies of the Current System for Satisfying Information Needs 125Questions and Answers 126Chapter 6Redefining the Monetary System and Measurements of Monetary Flow - Towards M5 and M6 129At the Core of the Issue: The Definition of Currency 132The New Environment: Broadening the Definition of Currency 133New Monetary Aggregates Define Extended Concepts of Money 135Defining New Classes of Monetary Aggregates: M5 and M6 135M5/M6 and their Derivatives M5 '/M6' : Determining Definitions and Uses 137Segregation and Derived Aggregates: M5' and M6' 140The Utility of M5 and M6 Aggregates 142From a Practical Point of View, What are the Data Limitations for Determining the Values of New Monetary Aggregates? 142What Information Will These New Aggregates Yield? 142A New Aggregated Conceptual Approach Allowing Operational Transactions and Financial Ones to be Reconciled 143The Resulting Breakthrough 143Defining New Money - The Difference Between Shadow Banking Money, Virtual Money and the New Aggregates 145Legal Segregation between Different Types of Money, Depending on Underlying Guarantees and Transferability 145Shadow Banking is Different from Virtual Money 146Questions and Answers 146Chapter 7The Monetary System 149International Exchanges - Interactions and Monetary Zone Coherence 149General Framework 150Description of the Current Operational System: Distinction between National and International Systems 151The Current International System 152The International Set-up 152The International Monetary Fund 153The Bank for International Settlements 157The World Bank Group 158The World Trade Organization 159International Coordination 160G5 to G20 160The G20's Reasons to Exist 160The Coordination of Goals Assigned to the G20 161Troika 161Micro- and Macro-prudential Surveillance Agencies' Framework 162Coordination Issues Inside the Eurozone as Opposed to International 167The European Stability Mechanism and the European Central Bank 167The Banking Union 169The Fiscal Policy Coordination Issue Compared with the USA 173The Growing Issues of the Size of the Monetary Zones -Research for Optimum 175The Monetary Interaction of Systems 178General Interaction: Scale Economies Resulting from Monetary Integration and Political Obstacles 178International Microeconomic Regulation Coordination Specifics 178Transnational Realities about Financial Instruments' Markets and Systemic Risk Measurement 180Handling the Social Obstacles of Monetary Unification 181The Answer to Heterogeneity 181Europe and the USA 182The US Answer to Inequalities 182The EU Answer to Inequalities 182The General Monetary Policy on Both Sides: Reinforce Equity, Regulate Transparency -A Dead End 184The Disputed Strategy: Addressing Macroeconomic Imbalances 186Allocated Roles and Goals in the International Monetary Set-up 188Today's International Situation and Issues 189Questions and Answers 190Chapter 8What is the Conceptual Essence of Contractual Money, Constraints and Implications? 193The Intrinsic New Conceptual Views on Money 193Resilient Open Questions in a New Environment 196Stability and Guarantees 198Money as a Measurement Instrument: The Need for Stability 198Money Guarantees and Trust 200One Key Consequence of the New Set-up: The Final Trap 202The Emergence of a New Seignorage 204Spreading the Seignorage Rights between Chartered Financial Institutions Accepted to Trade Instruments and the Central Banks' Right to Drive Values 204Social Roles of Money: Transferable, Reserve or Bubble? How to Determine Sociological Thresholds from Different Dimensions 205Modelling the Monetary Windbag Analysis 207A Tentative Formula: STD (Serval-Tranie-Douady) 208Debt versus Equity Instruments: The Need for Big Data 211Questions and Answers 211Chapter 9The New Nature of Money in Electronic Times 215New Horizons Concerning Exchanges, Time and Guarantees 216Time: A Different Dimension 221Social Time and Anticipation 222Speed Efficiency, Risks and Market Switches 223Transparency Effect and Risk of Centralization: The CCP Example 223Money Accumulations and Interactions 224From Excessive Accumulation Derives Non-level Playing Fields 224Determining the Appropriate Amounts of Accumulation 226The Paradox of Availability of Money Masses as a Policy Tool for their Holders 227The Implosion Risk of the Money Trap 227Questions and Answers 228Conclusion 231Glossary 241References 247Selected Articles 253List of Monetary Central Institutions and Others (International and National) with Websites 257Index 265

Über Autor(innen)

Jean-François Serval is President of Serval & Associés, a European accounting practice and a founder and head of United States operations of Constantin Associates, a multinational accounting firm. He sits on several boards including European League for Economic Co-operation, and the International Fiscal Association.Jean-Pascal Tranié is President of Aloe Private Equity. He has held senior executive positions at Veolia Énergie and was head of Vivendi's Media and Multimedia divisions, before becoming CEO of the Viventures Partners venture capital arm.