Where does money come from?: a guide to the UK monetary and banking system
Gespeichert in:
| Format: | Buch |
|---|---|
| Sprache: | English |
| Veröffentlicht: |
London
New Economics Foundation
2012
|
| Ausgabe: | 2. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | Hier auch später erschienene, unveränderte Nachdrucke |
| Beschreibung: | 186 S. graph. Darst. 24x17x8 cm |
| ISBN: | 9781908506542 |
Internformat
MARC
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| 020 | |a 9781908506542 |9 978-1-908506-54-2 | ||
| 035 | |a (OCoLC)896210787 | ||
| 035 | |a (DE-599)BVBBV041916319 | ||
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| 041 | 0 | |a eng | |
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| 245 | 1 | 0 | |a Where does money come from? |b a guide to the UK monetary and banking system |c Josh Ryan-Collins... |
| 250 | |a 2. ed. | ||
| 264 | 1 | |a London |b New Economics Foundation |c 2012 | |
| 300 | |a 186 S. |b graph. Darst. |c 24x17x8 cm | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 500 | |a Hier auch später erschienene, unveränderte Nachdrucke | ||
| 650 | 0 | 7 | |a Bankgeschäft |0 (DE-588)4112667-1 |2 gnd |9 rswk-swf |
| 650 | 0 | 7 | |a Geldwirtschaft |0 (DE-588)4129419-1 |2 gnd |9 rswk-swf |
| 689 | 0 | 0 | |a Geldwirtschaft |0 (DE-588)4129419-1 |D s |
| 689 | 0 | 1 | |a Bankgeschäft |0 (DE-588)4112667-1 |D s |
| 689 | 0 | |5 DE-604 | |
| 700 | 1 | |a Ryan-Collins, Josh |e Sonstige |4 oth | |
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| 999 | |a oai:aleph.bib-bvb.de:BVB01-027359918 | ||
Datensatz im Suchindex
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| adam_text | CONTENTS
FOREWORD
............................................................................................................................................................................02
L
INTRODUCTION
.............................................................................................................................................................04
1.1
Key questions
...........................................................................................................................................................................05
1.2
Overview of key findings
............................................................................................................................................06
1.2.1.
The money supply and how it is created
..........................................................................................................
~
06
1.2.2.
Popular misconceptions of banking
.............................................................-......................................................07
1.3
How the book is structured
......................................................................................................................................08
2.
WHAT DO BANKS DO?
............................................................................................................................................10
2.1.
The confusion around banking
...........................................................................................................................11
2.2.
Popular perceptions of banking
1:
the safe-deposit box
.........................................................11
2.2.1.
We do not own the money we have put in the bank
...............................................................................11
2.3.
Popular perceptions of banking
2:
taking money from
savers and lending it to borrowers
.....................................................................................................................12
2.4.
Three forms of money
.....................................................................................................................................................14
2.5.
How banks create money by extending credit
...................................................................„..............16
2.6.
Textbook descriptions: the multiplier model
.....................................................................................18
2.7.
Problems with the textbook model
................................................................................................................20
2.8.
How money is actually created
.............................................................................................................................21
3.
THE NATURE AND HISTORY OF MONEY AND BANKING
28
3.1.
The functions of money
................................................................................................................................................29
3.2.
Commodity theory of money: money as natural and neutral
..........................................30
3.2.1.
Classical economics and money
...................„.........................................................................................................30
3.2.2.
Neo-classical economics and money
..................................................................................................................31
3.2.3.
Problems with the orthodox story
..........................................................................................................................32
3.3.
Credit theory of money: money as a social relationship
.........................................................33
3.3.1.
Money as credit: historical evidence
............................................................„.,._.................................................34
3.3.2.
The role of the state in defining money
...............................................................................................................35
3.4.
Key historical developments: promissory notes, fractional
reserves and bonds
.........................................................................................„..„..............................................................37
3.4.1.
Promissory notes
.....................................................................................................................................................................38
3.4.2.
Fractional reserve banking
.............................................................................................................................................38
3.4.3.
Bond issuance and the creation of the Bank of England
...................................................................40
3.5.
Early monetary policy: the Buliionist debates and
1844
Act
............................................42
3.6.
Twentieth century: the decline of gold, deregulation and
the rise of digital money
..............................................................................................................................................45
3.6.1.
A brief history of exchange rate regimes
...........................................................................................................45
3.6.2.
WWI, the abandonment of the gold standard and the regulation of credit
...................45
3.6.3.
Deregulation of the banking sector in the
1970s
and
1980s...........................................................48
3.6.4.
The emergence of digital money
...............................................................................................................................52
4.
MONEY AND BANKING TODAY
................................................................................................................ 58
4.1.
Liquidity,
Goodharťs
law, and the problem of defining money
....................................59
4.2.
Banks as the creators of money as credit
..............................................................,...................................62
4.3.
Payment: using central bank reserves for interbank payment
......................................64
4.3.1.
Interbank clearing: reducing the need for central bank reserves
..............................................68
4.3.2.
Effects on the money supply
.............,............................................................................................................................71
4.4.
Cash and seignorage
.......................................,.........,.......................................................................................................71
4.4.1.
Is cash a source of debt-free money?
...................................................................................................................72
4.5.
How do banks decide how much central bank money they need?
..............................74
4.6.
Is commercial bank money as good as central bank money?
...........................................75
4.6.1.
Deposit
i nsurance
...................................................................................................................................................................76
4.7.
Managing money:
repos,
open market operations, and
quantitative easing (QE)
..............................................................................................................................................77
4.7.1.
Repos
and open market operations
........................................................................................................................78
4.7.2.
Standing facilities
....................................................................................................................................................................79
4.7.3.
Quantitative Easing
...............................................................................................................................................................80
4.7.4.
Discount Window Facility
..............................................................................................................................................84
4.8.
Managing money: solvency and capital
.....................................................................................................84
4.8.1.
Bank profits, payments to staff and shareholders and the money supply
..........................87
4.9.
Summary: liquidity and capital constraints on money creation
..................................88
5.
REGULATING MONEY CREATION AND ALLOCATION
..........................................92
5.1.
Protecting against insolvency: capital adequacy rules
............................................................93
5.1.1.
Why capital adequacy requirements do not limit credit creation
............................................95
5.1.2.
Lever age Ratios: a variant of capital adequacy
r
ules...............................................................................
96
5.2.
Regulating liquidity
..........................................................................................................................................................97
5.2.1.
Compulsory reserve ratios
..............................................................................................................................................98
5.2.2.
Sterling stock liquidity regime (SLR)
....................................................................................................................98
5.3.
Securi tisation,
shadow banking and the financial crisis
...................................................100
5.4.
The financial crisis as a solvency and liquidity crisis
..............................................................102
5.5.
Endogenous versus exogenous money
.....................................................................................................103
5.6.
Credit rationing, allocation and the Quantity Theory of Credit
...............................105
5.7.
Regulating bank credit directly: international examples
..................................................110
6.
GOVERNMENT FINANCE AND FOREIGN EXCHANGE
..........................................116
6.1.
The European Union and restrictions on government money creation
..........................117
6.1.1.
The
Eurozone
crisis and the politics of monetary policy
.............................................................120
6.2.
Government taxes, borrowing and spending (fiscal policy)
.......................................................121
6.2.1.
Taxation
.........................................................................................................................................................................................121
6.2.2.
Borowing
.....................................................................................................................................................................................122
6.2.3.
Government spending and idle balances
............................................................„.......................................123
6.3.
The effect of government borrowing on the money supply: crowding out
......124
6.3.1.
Linking fiscal policy to increased credit creation
.................................................................................126
6.4.
Foreign exchange, international capital flows and the effects on money
........127
6.4.1.
Foreign exchange payments
.......................................................................................................................................127
6.4.2.
Different exchange rate regimes
.............................................................................................................................129
6.4.3.
Government intervention to manage exchange rates and the impossible trinity*
.... 130
6.5.
Summary
......................................................................................................................................................................................132
7.
CONCLUSIONS
................................................................................................................................................................136
7.1.
The history of money: credit or commodity?
...................................................................................137
7.2.
What counts as money: drawing the line
.............................................................................................138
7.3.
Money is a social relationship backed by the state
....................................................................139
7.4.
Implications for banking regulation and reforming the current system
........140
7.5.
Towards effective reform: Questions to consider
........................................,...............................141
7.6.
Are there alternatives to the current system?
..................................................................................143
7.6.1.
Government borrowing directly from commercial banks
........,.................................................143
7.6.2.
Central bank credit creation for public spending
..................................................................................143
7.6.3.
Money-financed fiscal expenditure
..................................................,.................................................................144
7.6.4.
Regional or local money systems
...........................................................................................................................145
7.7.
Understanding money and banking
..........................................................................................................146
APPENDIX
1:
THE CENTRAL
BANK S
INTEREST
RATE REGIME
.........................................................................150
ALI.
Setting interest rates
—
demand-driven central bank money
.......................................150
Al
.2.
Setting interest rates
—
supply-driven central bank money
............................................152
APPENDIX
2:
GOVERNMENT BANK ACCOUNTS
.......................................................................................................................153
A2.L The Consolidated Fund
.............................................................................................................................................153
A2.2. The National Loans Fund
.......................................................................................................................................154
A2.3· The Debt Management Account
....................................................................................................................154
A2.4. The Exchange Equalisation Account
(ЕЕ
A)
......................................................................................158
APPENDIX
3:
FOREIGN EXCHANGE PAYMENT, TRADE AND SPECULATION
...................................161
A3.1. Trade and speculation
........................................................................................................................................161
A3.2. The foreign exchange payment system
...........................................................................................162
A3.2.1. Traditional correspondent banking
...........................................................................................................163
A3.2.2. Bilateral netting
.............................................................................................................................................................165
A3.2.3. Payment versus payment systems: the case of CLS Bank
.....................................................165
A3.3.4. On Us, with and without risk
...........................................................................................................................167
A3.3.
5.
Other payment versus payment settlement methods
..............................................................167
Box
1:
Retail, commercial, wholesale and investment bank
...................................................................13
Box
2:
Building societies, credit unions and money creation
.................................................................16
Box
3:
Bonds, securities and gilts
.....................................................................................................................................40
Box
4:
Wholesale money markets
....................................................................................................................................50
Box
5:
Double-entry bookkeeping and T-accounts
_________________.................................63
Box
6:
Money as information
—
electronic money in the Bank of England
..............................67
Box
7:
What is
LIBOR
and how does it relate to the Bank of England policy rate?
...........71
Box
8:
Seigniorage, cash and bank
s
special profits
........................................................................................74
Box
9:
Real time gross settlement (RTGS)
................................................................................................................76
Box
10:
If banks can create money, how do they go bust? Explaining insolvency
and illiquidity
......................................................................................................................................................................86
Box
11:
The shadow banking system
...........................................................................................................................101
Box
12:
The Quantity Theory of Credit
.......................................................................................................................109
Box
13:
Could the Government directly create money itself?
...............................................................119
Appendices
Box
Al:
Market-makers
......................................,........................................................................................................................155
Box A2: Foreign Exchange instruments
......................................................................................................................162
|
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| ctrlnum | (OCoLC)896210787 (DE-599)BVBBV041916319 |
| discipline | Wirtschaftswissenschaften |
| edition | 2. ed. |
| format | Book |
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| id | DE-604.BV041916319 |
| illustrated | Illustrated |
| indexdate | 2024-08-01T12:06:08Z |
| institution | BVB |
| isbn | 9781908506542 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-027359918 |
| oclc_num | 896210787 |
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| owner_facet | DE-355 DE-BY-UBR DE-703 DE-863 DE-BY-FWS |
| physical | 186 S. graph. Darst. 24x17x8 cm |
| publishDate | 2012 |
| publishDateSearch | 2012 |
| publishDateSort | 2012 |
| publisher | New Economics Foundation |
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| spellingShingle | Where does money come from? a guide to the UK monetary and banking system Bankgeschäft (DE-588)4112667-1 gnd Geldwirtschaft (DE-588)4129419-1 gnd |
| subject_GND | (DE-588)4112667-1 (DE-588)4129419-1 |
| title | Where does money come from? a guide to the UK monetary and banking system |
| title_auth | Where does money come from? a guide to the UK monetary and banking system |
| title_exact_search | Where does money come from? a guide to the UK monetary and banking system |
| title_full | Where does money come from? a guide to the UK monetary and banking system Josh Ryan-Collins... |
| title_fullStr | Where does money come from? a guide to the UK monetary and banking system Josh Ryan-Collins... |
| title_full_unstemmed | Where does money come from? a guide to the UK monetary and banking system Josh Ryan-Collins... |
| title_short | Where does money come from? |
| title_sort | where does money come from a guide to the uk monetary and banking system |
| title_sub | a guide to the UK monetary and banking system |
| topic | Bankgeschäft (DE-588)4112667-1 gnd Geldwirtschaft (DE-588)4129419-1 gnd |
| topic_facet | Bankgeschäft Geldwirtschaft |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=027359918&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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