1) Statement to Quantity Theory of Money
2) Graph illustration and Pictorial description of QTM
3) Different Approaches to QTM
4) Fisher's Transaction Approach Description
5) Assumptions of Fisher's Transaction Approach
6) Conclusion
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
1) Statement to Quantity Theory of Money
2) Graph illustration and Pictorial description of QTM
3) Different Approaches to QTM
4) Fisher's Transaction Approach Description
5) Assumptions of Fisher's Transaction Approach
6) Conclusion
In Macroeconomics Income and Employment are interchangeable terms, since in the short-run National income depends on the total volume of employment or economic activity in the country. As income and employment are synonymous the employment theory is also called income theory.
It should be clear to readers that the classical economists did not formulate any specific theory of employment as such. They only laid down certain postulates which subsequently developed as a theory.
MODERN MONEY: The way a sovereign currency “works”DevinDSmith
Presentation by L. Randall Wray at the conference: Central Banks, Financial Systems, and Economic Development, Banco Central de la Republica Argentina in Buenos Aires, Argentina on 10/2/2012
Powerpoint presented at the Batesville Area chamber of Commerce July 19th for Business Financing Options workshop by the ASU Small Business and Technology Development Center
You might have a billion dollar business idea that will make you nearly as much rich annually as you imagine but what happens if you do not have a billion dollar to get it to reality? For a business to thrive you might need a website, a technical team, a work space. All these cost money and it is not always easy to find sources of funding that might meet the increasing demand of money as your business grows. Therefore, you should be keen from the very beginning to handling the monetary issues and be solid in start- up funding.
BlackLine and The Hackett Group hosted an event in May 2016 to highlight the importance of using modern technology to make workflow for finance and accounting professionals.
Role of Finance and Accounting Outsourcing in achieving the CFO’s Agenda for ...WNS Global Services
The demand for finance and accounting outsourcing (FAO) services is strong and will continue to grow in 2010, according to the findings of The WNS Annual CFO Survey 2010.
The study consisted of an online survey of 100 senior finance executives in organizations with revenues of over $3 billion. The survey was designed to identify and analyze key items on the CFO's agenda and assess how alternative service delivery models such as business process outsourcing are used to address these agendas.
Some of the key findings include:
- Over 75 percent of the finance executives plan to expand their outsourcing programs in 2010
- Driving corporate cost cutting efforts and improving internal controls are the two most crucial issues in 2010
- Forty-four percent of the finance executives believe growing the business will be an organizational imperative in 2010
- Over 85 percent of the finance executives are satisfied with the benefits from FAO
"The survey clearly suggests that FAO has become a mainstream tool as 85 percent of respondents say they are satisfied with the benefits. While FAO has been commonly used to reduce cost of operations, it is increasingly becoming more strategic, focusing on transforming F&A operations," said Sulakshana Patankar, Business Unit Leader, WNS Finance and Accounting Solutions. "It is extremely encouraging to note that respondents who outsource plan to increase the scale of their programs in 2010, expanding both processes in scope and adding business units and geographies."
The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.
For the findings and additional details about The WNS Annual CFO Survey 2010, please visit www.wns.com/financeandaccounting.
State or Market: Mystery of Money-RevealedAsad Zaman
{writeup/Video: http://bit.ly/azGian01A} There is an age-old controversy regarding money. Free market proponents believe that money emerges naturally to facilitate exchange among private parties. State Theorist hold that money is a creation of the state, which acquires value by force of law. Giannini resolves this controversy by showing that both state and market are necessary aspects of money.
Modern Monetary Theory and Practice An Introductory Text .docxraju957290
Modern Monetary Theory and Practice: An Introductory Text
William Mitchell, L. Randall Wray and Martin Watts
105
Chapter 6: Introduction to Sovereign
Currency: The Government
and its Money
Chapter Outline
6.1 Introduction
6.2 The National Currency (Unit of Account)
- One nation, one currency
- Sovereignty and the currency
- What ‘backs up’ currency?
- Legal tender laws
- Fiat currency
- Taxes drive the demand for money
- Financial stocks and flows are denominated in the national money of account
The financial system as an electronic scoreboard
6.3 Floating verses Fixed Exchange Rate Regimes
- The gold standard and fixed exchange rates
- Floating exchange rates
6.4 IOU’s Denominated in National Currency: Government and Non-Government
- Leveraging
- Clearing accounts extinguishes IOUs
- Pyramiding currency
6.5 Use of the Term ‘Money’: Confusion and Precision
Modern Monetary Theory and Practice: An Introductory Text
William Mitchell, L. Randall Wray and Martin Watts
106
Learning Objectives
1. Explain why a fiat currency is valued and is acceptable in domestic transactions.
2. Recognise the distinction between fixed and floating exchange rate regimes and their
significance for the conduct of macroeconomic policy.
3. Understand how IOUs are created and extinguished.
Modern Monetary Theory and Practice: An Introductory Text
William Mitchell, L. Randall Wray and Martin Watts
107
6.1 Introduction
In this chapter we will examine in more detail several of the concepts briefly introduced in
earlier Chapters of this textbook. We first turn to the money of account and the nation’s
currency, and note that the latter is not backed by a precious metal, such as gold. We argue that
the so-called fiat currency is valued and widely used in transactions because it is required as the
means to relinquish tax obligations levied by the state. All financial stocks and flows are
denominated in the national money of account. In this context the financial system can be viewed
as a record of transactions, that is a scoreboard. We then examine the difference between floating
and fixed exchange rate systems. Government and non-government IOUs are denominated in the
money of account. After defining leveraging, we argue that these different types of IOUs can be
conceived of as a financial pyramid, with government IOUs at the top. Finally we emphasise the
need to use the term ‘money’ very carefully to avoid confusion.
6.2 The National Currency (Unit of Account)
Let us look at money as the unit of account in which stocks and flows are denominated.
One nation, one currency
In Chapter 1 we introduced the concept of the money of account. The Australian dollar, the US
dollar, the Japanese yen, the British pound, and the European euro are all examples of a money
of account. The first four of these monies of account are each associated with ...
Today’s financial “crisis” is facilitating the evolutionary jump to the next stage of human development – shifting from faulty, money-measured GDP growth to the cleaner, greener sustainable economies
What are the financial markets and what purposes do they serveA f.pdfAnkitchhabra28
What are the financial markets and what purposes do they serve?
A financial market is a broad term describing any marketplace where buyers and sellers
participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial
markets are typically defined by having transparent pricing, basic regulations on trading, costs
and fees, and market forces determining the prices of securities that trade.
Financial markets can be found in nearly every nation in the world. Some are very small, with
only a few participants, while others - like the New York Stock Exchange (NYSE) and the forex
markets - trade trillions of dollars daily.
Investors have access to a large number of financial markets and exchanges representing a vast
array of financial products. Some of these markets have always been open to private investors;
others remained the exclusive domain of major international banks and financial professionals
until the very end of the twentieth century.
What are financial intermediaries? How do these intermediaries function in the economy?
Financial intermediaries channel funds from people who have extra money or surplus savings
(savers) to those who do not have enough money to carry out a desired activity (borrowers). A
financial intermediary is typically an institution that facilitates the channeling of funds between
lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary
institution (such as a bank), and that institution gives those funds to spenders (borrowers). This
may be in the form of loans or mortgages. Alternatively, they may lend the money directly via
the financial markets, which is known as financial disintermediation.
Financial intermediaries help circulating money in the system. If money is staying idle (e.g.
under your bed pillow or as gold in your locker) then it is not good for the economy. Money
must keep changing hands. If you look at this from a different angle: if nobody buys skin
whitening creams then who will feed the families of those chemists who work there And the
businessman who supplies raw material to that factory? They promote the habit of savings.
Individual can use that saved money in bad times / emergency and earn profit in between. A
needy businessman will easily get loans.
When businessmen can get loans easily at a reasonable cost, they’ll start new business, expand
existing business, hire more employees, increase production of goods / services = GDP
increases. When people are making more money, they spend more money. A family goes to
restaurant, poor waiter makes money. Family hires maid, gardener, driver. Family buys new car,
mobile or bike- it breaks down, the repairman makes money. That’s how money trickles down
from rich people to poor people.
What is a federal government budget deficit? What is the national debt? How does a budget
deficit affect the economy?
The federal government budget deficit is when the Federal spending is greater than the tax
reve.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
1. MODERN MONEY AND FUNCTIONAL FINANCE L. Randall Wray, UMKC and CFEPS [email_address] UNAM May 31, 2007
2. The state money approach is associated with Knapp, Keynes, and Lerner, while credit money is associated with Innes and Schumpeter, and more loosely with the Circuit and endogenous money approaches. The functional finance approach is associated with Lerner. Modern Money = endogenous money + state money + credit money + functional finance
3.
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6. Govt came along and screwed things up by issuing a fiat M w/o backing. Causes inflation. Too much money chasing too few goods
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10. Why do economists begin monetary analysis with a potted history? To focus attention on the essential characteristics, or nature, of money. We will never “know” the origins of money. First, the origins are lost “in the mists of time”—almost certainly in pre-historic time.
11. Second, money consists of complex social practices that include power and class relationships, socially constructed meaning, and abstract representations of social value—so it is not easy to identify those social practices that are “money”.
17. The typical barter story is consistent with a neoclassical, asocial, approach in which money is “natural” but “neutered”: -Social power and economic classes are purged from the analysis; -the market is exalted; -role of government is downplayed; -money is a “neutral veil” that obscures social relations. Whether barter story is “correct” in some sense is really not the issue --it is useless for understanding the way money works today.
18. The heterodox alternative: -locates the origin of money in credit and debt relations -Must identify the social nature of the money unit of account and the social processes that generate creditors and debtors -The unit of account is emphasized as the numeraire in which credits and debts are measured -The store of value function could also be important, for one stores wealth in the form of others’ debts -The medium of exchange function and the market are de-emphasized; indeed, one could imagine credits and debits without markets and without a medium of exchange
19. State or Chartalist Approach: Traces creation of a money of account to the penal system; wergild or payment of “fines” by transgressors to victims. -word for debt in most languages is synonymous with sin or guilt, reflecting these early reparations. -Until one paid the wergild fine, one was “liable”, or “indebted” to the victim. -We still think of a traffic fine as an “obligation” to pay, and speak of the criminal’s debt to society.
20. The debt/credit relation was involuntarily imposed and socially created to “pacify” the victim (from which comes our verb “to pay”). Wergild fines were gradually converted into “obligations” that required payment of fines, fees, tribute, tithes, and finally taxes to an authority. Eventually the obligations were standardized in a unit of account—from whence comes the money of account.
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22. Money is not a veil that hides the essential characteristics of the “market economy”. Rather, the money of account and those credit-debt relations are the key relations of the capitalist economy.
23. THE STATE THEORY OF MONEY Highlights the role played by “authorities” in the origins and evolution of money. The state imposes a liability in the form of a generalized, social, unit of account--a money--used for measuring the obligation. Once the authorities can levy such obligations, they can name what fulfills this obligation by denominating those things that can be delivered, in other words, by pricing them.
24.
25. In (almost) all modern developed nations, the state accepts the currency issued by the treasury (in the US, coins), plus central bank notes (Federal Reserve notes in the US), plus bank reserves (liabilities of the central bank)—together, HPM. The state money approach might appear to be inconsistent with the credit money approach but it is not: Even state money is credit money. For the government, a dollar is a promise to ‘satisfy’, a promise to ‘redeem,’ just as all other money is.
26. Whether the government’s IOU is printed on paper or on a gold coin, it is indebted just the same.
27. What is the nature of the government’s IOU? Innes: this brings us to the “very nature of credit throughout the world”, which is “the right of the holder of the credit (the creditor) to hand back to the issuer of the debt (the debtor) the latter’s acknowledgment or obligation”. What is special about government? Its credit is “redeemable by the mechanism of taxation”: “[I]t is the tax which imparts to the obligation its ‘value’…. A dollar of money is a dollar, not because of the material of which it is made, but because of the dollar of tax which is imposed to redeem it”. (Innes 1914, p. 152) The value of the dollar is maintained by what one must do to obtain it to discharge tax liabilities.
30. Lerner’s Functional Finance Approach This is all related to Lerner’s “money is a creature of the state” and “functional finance” approach. 1. The first principle of functional finance is that taxes should be raised only if the non-government sector has too much income; 2. The second principle is that bonds should be sold only if the non-government sector has too much money. Neither taxes nor bonds “finance” government spending. Taxes create a demand for the government’s money; bond sales are part of monetary policy that allows the CB to hit its interest rate target.
31. Comparison to Orthodox View of Budget Orthodoxy: G = dM + T + dB “ Monetary finance” is inflationary. “ Bond finance” leads to crowding out. Deficit finance and Ricardian Equivalents. All of these are incorrect for a Sovereign nation that issues the currency. The orthodox view of the Government Budget Constraint and the Crowding Out effect have to be dropped. All else equal, budget deficits push interest rates down as excess reserves cause the overnight rate to fall below target.
32. CONCLUSION: AN INTEGRATION OF THE CREDIT, STATE, AND ENDOGENOUS MONEY APPROACHES The state chooses the unit of account in which the various money things will be denominated. In all modern economies, it does this when it chooses the unit in which taxes will be denominated and names what is accepted in tax payments. Imposition of the tax liability is what makes these money things desirable in the first place. And those things will then become the (HPM) money-thing at the top of the “money pyramid” used for ultimate clearing.
33. CONCLUSIONS Ability to impose liabilities, name the unit of account, and issue the money used to pay taxes gives power to the authority to further the social good; allows society to organize social production. “Sovereignty” Much of the public production is undertaken by emitting state money through government purchase. Much private sector activity, in turn, takes the form of “monetary production”, or M-C-M’ as Marx put it, that is, to realize “more money”. This is mostly financed by credits and debits—that is, “private” money creation.
34. Because money is fundamental to these production processes, it cannot be neutral as it contributes to the creation and evolution of a “logic” to capitalism, largely “disembedding” the economy. At the same time, many of the social relations can be, and are, hidden behind a veil of money. This is most problematic with respect to misunderstanding about government budgets, where the monetary veil conceals the potential to use the monetary system in the public interest. Misunderstanding or mystification of the nature of money constrains government by the principles of “sound finance”.