Crs Report for Congress

Crs Report for Congress
Author: Marc Labonte
Publisher: BiblioGov
Total Pages: 24
Release: 2013-10
Genre:
ISBN: 9781293022122

The Foreign Operations Act (P.L. 102-391) signed on October 6, 1992 allows the U.S. quota, or contribution, increase to the IMF of $12 billion to be used to ..".support monetary stability in member countries through the instrumentality of currency boards." What is a currency board? How does it differ from an alternative monetary arrangement such as a central bank? Why was it adopted by countries with histories of chronic inflation (e.g., Argentina) and those emerging from the Soviet bloc (e.g., Bulgaria), and urged upon those suddenly hit by currency speculation (e.g., Indonesia)? What role did the currency board play in Argentina's 2001-2003 financial difficulties and why was it abandoned? Although factors affecting the decision to adopt a currency board vary from country to country, as do outcomes, fundamental differences between currency boards and central banks remain constant. This report focuses on their differences to provide a foundation for evaluating disparate cases. To understand the differences, it should be noted that the most important function of a central bank is its ability to alter the supply of money. When this power is abused, as occurs when central banks must provide the monetary wherewithal to finance government budget deficits, it undermines the ...

Currency Boards

Currency Boards
Author: Kirsi B. Porter
Publisher:
Total Pages: 134
Release: 1996
Genre: Currency boards
ISBN:

Alternatives to the Central Bank in the Developing World

Alternatives to the Central Bank in the Developing World
Author: Mr.Charles Collyns
Publisher: International Monetary Fund
Total Pages: 36
Release: 1983-03-15
Genre: Business & Economics
ISBN: 9781557750570

This paper discusses the operations of a wide range of central banking institutions in developing countries. The considerable diversity of economic, financial, and political conditions within the Third World has brought forth a wide variety of central banking institutions. Four polar types have been identified as providing coherent alternatives to the central bank. Historical experience certainly indicates that legislation on its own may not be enough to guarantee prudent behavior. Although many countries' central banking institutions have not yet come close to violating foreign exchange cover requirements or restrictions on government lending, in other cases the rules have simply been sidestepped by technical adjustments, altered expediently, or merely ignored. The organizational structure established by legislation probably plays a more positive part in determining a central banking institution's characteristic behavior. Operating procedures, channels of communication, and lines of command all exert some influence on where and how decisions are made in practice. The balance of power between government and monetary authority does not only depend on personality and outside support but will also be influenced by the institutional framework in which their interaction is established.

Central Banking Without Central Bank Money

Central Banking Without Central Bank Money
Author: Mr.Alain Ize
Publisher: International Monetary Fund
Total Pages: 43
Release: 1999-07-01
Genre: Business & Economics
ISBN: 145185157X

Given the rapidly declining demand for central bank reserves and their gradual replacement in wholesale payments by alternative forms of money—clearinghouse moneyand treasury money—this paper discusses whether the complete extinction of base money could undermine monetary control. It argues that such concerns are misplaced since central banks can target interest rates and inflation even in the absence of base money. The paper explores implications for current and future central banking, including monetary and foreign exchange operations, lender of last resort, coordination between public debt and monetary management, and design of operating rules in currency boards.

The SAGE Encyclopedia of Business Ethics and Society

The SAGE Encyclopedia of Business Ethics and Society
Author: Robert W. Kolb
Publisher: SAGE Publications
Total Pages: 8802
Release: 2018-03-27
Genre: Business & Economics
ISBN: 1483381536

Thoroughly revised, updated, and expanded, The SAGE Encyclopedia of Business Ethics and Society, Second Edition explores current topics, such as mass social media, cookies, and cyber-attacks, as well as traditional issues including accounting, discrimination, environmental concerns, and management. The new edition also includes an in-depth examination of current and recent ethical affairs, such as the dangerous work environments of off-shore factories for Western retailers, the negligence resulting in the 2010 BP oil spill, the gender wage gap, the minimum wage debate and increasing income disparity, and the unparalleled level of debt in the U.S. and other countries with the challenges it presents to many societies and the considerable impact on the ethics of intergenerational wealth transfers. Key Features Include: Seven volumes, available in both electronic and print formats, contain more than 1,200 signed entries by significant figures in the field Cross-references and suggestions for further readings to guide students to in-depth resources Thematic Reader's Guide groups related entries by general topics Index allows for thorough browse-and-search capabilities in the electronic edition

The Federal Reserve System Purposes and Functions

The Federal Reserve System Purposes and Functions
Author: Board of Governors of the Federal Reserve System
Publisher:
Total Pages: 0
Release: 2002
Genre: Banks and Banking
ISBN: 9780894991967

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Do Central Banks Need Capital?

Do Central Banks Need Capital?
Author: Mr.Peter Stella
Publisher: International Monetary Fund
Total Pages: 40
Release: 1997-07-01
Genre: Business & Economics
ISBN: 1451850506

Central banks may operate perfectly well without capital as conventionally defined. A large negative net worth, however, is likely to compromise central bank independence and interfere with its ability to attain policy objectives. If society values an independent central bank capable of effectively implementing monetary policy, recapitalization may become essential. Proper accounting practice in determining central bank profit or loss and rules governing the transfer of the central bank’s operating result to the treasury are also important. A variety of country-specific central bank practices are reviewed to support the argument.

Cash Use Across Countries and the Demand for Central Bank Digital Currency

Cash Use Across Countries and the Demand for Central Bank Digital Currency
Author: Mr.Tanai Khiaonarong
Publisher: International Monetary Fund
Total Pages: 43
Release: 2019-03-01
Genre: Business & Economics
ISBN: 1484399609

The level and trend in cash use in a country will influence the demand for central bank digital currency (CBDC). While access to digital currency will be more convenient than traveling to an ATM, it only makes CBDC like a bank debit card—not better. Demand for digital currency will thus be weak in countries where cash use is already very low, due to a preference for cash substitutes (cards, electronic money, mobile phone payments). Where cash use is very high, demand should be stronger, due to a lack of cash substitutes. As the demand for CBDC is tied to the current level of cash use, we estimate the level and trend in cash use for 11 countries using four different measures. A tentative forecast of cash use is also made. After showing that declining cash use is largely associated with demographic change, we tie the level of cash use to the likely demand for CBDC in different countries. In this process, we suggest that one measure of cash use is more useful than the others. If cash is important for monetary policy, payment instrument competition, or as an alternative payment instrument in the event of operational problems with privately supplied payment methods, the introduction of CBDC may best be introduced before cash substitutes become so ubiquitous that the viability of CBDC could be in doubt.