A better way to account for fiat money at the Central Bank
AbstractProper monetary accounting rules are: (1) Central Banks should conform to the practice of the US Federal Reserve to distinguish its Balance Sheet from its Statement of Conditions. (2) Fiat money should not appear as a liability in a Balance Sheet. (3) The Central Bank should not record more government bonds than required for open market operations. Surplus bonds should be accounted as being void (on loan from the government who should destroy them). If these rules are not observed, a wrong measure of government debt arises, distorting the requirements for policy making.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series General Economics and Teaching with number 0512014.
Length: 4 pages
Date of creation: 31 Dec 2005
Date of revision:
Note: Type of Document - doc; pages: 4. Composed in Word for Windows on a Windows XP machine
Contact details of provider:
Web page: http://18.104.22.168
Fiat Money; Money; Central Bank; Government Debt; Seigniorage; Inflation Tax; Gold Standard; Accounting;
Find related papers by JEL classification:
- A00 - General Economics and Teaching - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-CBA-2006-01-24 (Central Banking)
- NEP-FMK-2006-01-24 (Financial Markets)
- NEP-MAC-2006-01-24 (Macroeconomics)
- NEP-MON-2006-01-24 (Monetary Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Colignatus, Thomas, 2011. "Conditions for turning the ex ante risk premium into an ex post redemption for EU government debt," MPRA Paper 34816, University Library of Munich, Germany, revised 17 Nov 2011.
- Colignatus, Thomas, 2011. "High Noon at the EU corral. An economic plan for Europe, September 2011," MPRA Paper 33476, University Library of Munich, Germany, revised 19 May 2010.
- Seigniorage in Wikipedia (English)
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.