Chicago Plan und Vollgeld als Alternative zum Kreditgeld: ein Weg zu stetigem Wachstum?

One drawback of our current credit economy is that commercial banks could potentially make too many loans. The supporters of full reserve banking and positive money therefore claim that the abolition of commercial bank money creation would lead to fewer financial crises. This paper argues that the market would bypass any lending regulations by creating its own money substitutes. Such a reform does not take into account the relationship between saving and investing in a growing monetary economy, abandons the benefits that commercial banks have in financing corporate investments, and is harmful for economic growth. As an alternative approach, further macroprudential instruments are suggested.     

Die aktuelle Kritik an der makroökonomischen Geldtheorie

There is no universal agreement on what money actually is. Money is created and used by the modern bank system, which can be split into the central bank, the commercial banks and the remaining sector of households, companies and states. The article focuses on bank deposits, which are created by commercial banks themselves. Bank deposits count as money in a modern economy such as Germany, where the bulk of money held by the public is in the form of deposits with banks. The other part is currency — bank notes and coins. Not accessible to the public (with some exceptions) are central bank reserves held by commercial banks with the central bank. There are two main problems which are currently being discussed by the Deutsche Bundesbank and by some more or less academic authors. First, what kind of relationship exists between base money (currency and reserves) and bank deposits? This relationship plays a crucial role in controlling and steering inflation and investment. Second, are banks lending the savings of their customers to other customers? This relationship is a cornerstone of the money multiplier theory. The answers to these two questions are not as trivial as they seem to be. Textbooks are of no help because they are the targets of the criticism made by central bank authors.     

Realising Central Banks’ Climate Ambitions Through Financial Stability Mandates

This paper discusses how financial stability governance has evolved and how central banks and financial regulators are coping with the threats posed by climate uncertainty, providing an overview of G20 countries’ green central banking experiences in the past 20 years. The analysis shows that most central banks realise their climate ambitions through financial stability mandates, leaving the monetary stability mandate unaffected. Considering the debate on market neutrality, the concerns on the risk of overstretching the central banks’ mandate, violation of Tinbergen’s principle and threats posed to central banks’ independence, the provided evidence reveals a mismatch between the observed policy practice and its theoretical underpinnings. Drawing on these findings, we argue that effective green central banking governance should be based on a synthesis between monetary and macroprudential policymaking.

     

ANFA – nationale Geldschöpfung als Sprengsatz für die Währungsunion?

The so called ANFA secret protocol brought to the public’s attention the previously only little noticed opportunity for national central banks of individual Eurozone members to create money through purchases of securities at their own expense. The ANFA financial assets amount to the significant share of 51% (gross) or rather 18% (net) of the Eurosystem’s balance sheet total and 41% of its total liquidity, thereby jeopardising the principle that the communities of the emitting and the money accepting countries should be congruent, which is seen as a stability condition for currency unions. There is a danger that the money creation via ANFA acts as an explosive device for the currency union. It is therefore necessary to clearly limit the own funds portfolio in order to restore the community of money emission.     

ANFA — National Money Creation as an Existential Threat to the Currency Union?

The recent publication of the previously secret Agreement on Net Financial Assets (ANFA) directed the public’s attention to the possibility that national central banks could create money through purchases of securities on their own account. This paper provides an overview of the legal foundations for ANFA and shows the varying extent to which the member countries use these regulations. What are the interests, risks and consequences for the countries in crisis and the currency union as a whole? Is the ECB properly monitoring ANFA purchases? Could money creation via ANFA act as an explosive device for the currency union?     

Debt Relief as a Last Resort for the Lender of Last Resort?

The coronavirus crisis has led to a sharp increase in the debt-to-GDP ratios of the euro area member states. Without external support, access to the capital market could be seriously threatened in the medium term for Italy, but also for other member states. While the Pandemic Emergency Purchase Programme, which is designed as a monetary policy instrument, is regarded by some as a violation of the prohibition of monetary financing, the Next Generation EU recovery fund is likely to direct the fundamental structures of the European Union towards a fiscal union with considerable redistribution elements. This article analyses an alternative strategy, namely debt relief by the European System of Central Banks through an EU debt agency. Such a scheme would be possible without amending the EU treaties and would avoid negative equity at the central banks. The question is under what circumstances would this approach be suitable and proportionate?

     

The Measurement and Importance of Service Quality in the Retailing of Recreational Services

ABSTRACT

In this article it is argued that the dealings between small companies and their banks consist of a number of relationship elements. Because today most banks employ some kind of relationship banking, there is a need to further conceptualise the relevant dimensions in implementing such an approach. In a study ten small companies in the Stockholm area were interviewed. The results indicate that the account manager in the bank proved to be the crucial person in the customer-bank relationship and that banks should organise their activities and promotion in a supportive way. There is a large potential for improvements in banks regarding their relationships with small companies.     

The money creation process: A theoretical and empirical analysis for the United States

The aim of this paper is to assess—on both theoretical and empirical grounds—the two main views regarding the money creation process, namely the endogenous and exogenous money approaches. After analysing the main issues and the related empirical literature, we will apply a vector autoregression model and a vector error‐correction model methodology to the United States for the period 1959–2017 to assess the causal relationship between a number of critical variables that are supposed to determine the money supply, that is, the monetary base, bank deposits, bank loans and the nominal level of economic activity. The empirical analysis supports several propositions related to the endogenous money approach. In particular, it shows that for the United States in the years 1959–2017 (a) bank loans determine bank deposits and (b) bank deposits in turn determine the monetary base. Our conclusion is that money supply is mainly determined endogenously by the lending activity of commercial banks and the nominal level of economic activity.     

电子货币发展与存款货币创造能力的相关性研究

电子货币的产生与发展已经给传统的货币金融理论带来了前所未有的挑战,也对商业银行的存款货币创造能力产生了明显的影响。以电子货币为视角,将电子货币引入存款货币创造的理论分析框架,并对电子货币发展与存款货币创造能力的相关性进行实证检验。研究发现:电子货币在放大货币乘数的同时也使其稳定性下降,因此,中央银行难以通过存款准备金政策影响货币乘数,进而影响商业银行的存款货币创造能力,从而加大了中央银行控制货币供给的难度。     

Sponsorship leveraged packaging: An exploratory study in FMCG

The concept of 'internal marketing' has received considerable coverage in the literature, but even its most ardent supporters have noted problems in translating the concept into reality. This paper discusses the findings of an exploratory case study carried out within 35 UK high street retail banks. Internal marketing is an initiative adopted by the organizations studied in order to nourish a marketing orientation.The implementation approach shapes the nature and form of the internal marketing communications that organizations adopt. Even though UK retail banks intend to implement internal marketing effectively, in reality the current implementation approach appears to be counter-productive to the achievement of the core aims of the initiative. The core finding from this exploratory research suggests that there are substantial barriers to the successful implementation of internal marketing within the banks studied, barriers such as the focus on short-term sales goals, the lack of a formal and 'holistic' implementation approach and the creation of 'personnel discrimination' and negative internal competition.     

Power or Economic Law? Fresh Reflections on ECB Policy

Conventional wisdom says that central banks determine interest rate levels. After all, monetary policy set by central banks directly influences money market conditions. But these conditions are also shaped by other actors such as government, manufacturing businesses, commercial banks and non-bank financial institutions, as well as by monetary developments abroad. In this paper, it is argued that market forces, such as a global saving glut, play a more important role in setting interest rates than central banks.     

Modern Monetary Theory: A Wrong Compass for Decision-Making

Intereconomics - In the last few years, the so-called Modern Monetary Theory (MMT) has been gaining prominence in the media and the public. This article presents the MMT approach to money and...     

Monetary control in open economies: National versus global monetarism

For about a decade the central banks of the leading Western industrial nations have set annual money supply targets.¹ Despite the common monetarist tone of their strategies, each central bank uses its own definition of the money supply relating solely to its national territory (national monetarism), thereby laying itself open to criticism from those who, like Professor Ronald McKinnon, hold that nationally oriented money supply control has had its day and instead advocate management of the world money supply (global monetarism).² The following article tests the arguments of the proponents of an international quantity theory and examines whether domestically oriented money supply management is really out of tune with the times.     

Helicopter Money: Should Central Banks Rain Money from the Sky?

Ultra-low interest rates have become an endemic and potentially problematic characteristic of the global economy. Central banks in the euro area, the United States, Japan and Australia have bet on lowering interest rates to increase inflation, but despite their efforts, core inflation remains stubbornly below the desired two per cent. However, central banks have another tool at their disposal that has the potential to stimulate inflation: helicopter money.     

Die aktuelle Kritik an der makroökonomischen Geldtheorie: Replik und Erwiderung

In Wirtschaftsdienst 9/2017, Georg Quaas picks up the current discussion on monetary theory. With references to some publications by central banks, he shows that the textbook theory is still empirically correct but in need of a few clarifications. Dirk Ehnts argues that this position is refuted by recent reports published by — among others — the Deutsche Bundesbank. He shows that the process of money creation is still not correctly described in frequently used textbooks. Ehnts states that the money multiplier and loanable funds theory should be discarded. Quaas replies that Ehnts ignores the rules of scientific development, especially the need for recognised and replicable statements as a precondition of falsifications. Furthermore, Quaas argues that Ehnts’s empirical arguments are incomplete and imprecise, and the submitted theoretical argument (Keynesian identity) is not applicable to a two level monetary system.     

A POST‐KEYNESIAN STOCK‐FLOW CONSISTENT MODEL FOR DYNAMIC ANALYSIS OF MONETARY POLICY SHOCK ON BANKING BEHAVIOUR

We try to make Keynes' approach compatible with an endogenous theory of the money supply. For that purpose, the principle of liquidity preference is generalized within a competitive banking framework. Private banks can impose a monetary rationing independently of the central bank. Then, we analyse the consequences of a monetary policy shock on the financial behaviour of banks. We clarify the dynamic process between the monetary policy and net investment within a Minskyan approach. First, we build a Post‐Keynesian stock‐flow consistent model with a private‐bank sector introducing more realistic features. Second, we perform some simulations.     

基于货币吸收分析与GDP修正数据的未观测货币规模估算:1978-2005

未观测货币是民间借贷、非正规金融与未观测经济活动吸收或释放的货币量,对中央银行货币政策调控具有一定的影响.掌握未观测货币的规模,能够对宏观经济运行的未观测因素产生的干扰程度做出大致判断,并采取相应的政策,促进经济持续稳定发展.本文基于货币吸收分析方法和最新GDP修正数据,对改革开放28年来中国的未观测货币规模进行估算.与已有研究相比,本文侧重于分解货币吸收的非经济增长因素及其货币规模.实证结果显示,未观测货币总量呈现周期性特征,在经济周期高点,未观测货币释放规模较大,而在此时点前后,吸收规模较大;它的政策意义在于,将未观测货币纳入货币供给统计分析框架体系,可以判断经济运行周期的时点边界,增强货币政策的有效性.     

Banks and Consultants in Nigeria's Job Creation Program

Employment creation has become a central objective of policy in many countries. There is also growing unanimity that it can be better attained via a partnership of the private and public sectors. In order to provide the necessary background, the paper highlights extant evidence on the role of entrepreneurship in employment creation and some of the factors which may constrain it. The paper also evaluates the performance of private banks and management consultants in providing credit and management assistance in the job creation program for unemployed graduates in Nigeria. The evaluation is on the basis of the participants' ratings on some selected performance criteria. On the average, with only one exception, banks obtained better ratings than consultants on six performance criteria that are common to them but failed to meet the participants' expectations on four credit-related criteria.     

Do banks loan money?

There is an obvious and important difference between bank loans and typical personal loans, viz., that banks charge interest in order to make a profit. Accordingly, what banks do is more accurately described as selling or renting money than as loaning money. Moreover, it is advantageous to banks misleadingly to describe their activity as loaning. For this assimilates their activity to the case of personal loans and helps to create an impression that banks do us a favor by loaning us money and that we owe them gratitude for so doing. Since these impressions are false, banks ought cease to describe what they do in this way.     

Value Creation and Category Management through Retailer–Supplier Relationships

Abstract

This article discusses category management interactions in supplier–retailer relationships based on conceptual insights about value in business markets. Much category management literature has studied supplier–retailer relationships, but despite value creation being central to category management the conceptual approach is often the power-trust controversy. Based on value concept, category management and supplier–retailer relationship literature this study develops a model and hypotheses of retailer perceived benefits and sacrifices from category management collaboration. The article proposes that closer supplier-retailer interactions through the category management process hold the potential for increased value creation through application of complementary information resources, an improved coordination of tactical efforts, and an alignment of category aims and strategies explicitly linked to retailers' value systems. Further, the perceived necessity of trust in these relationships meshes with retailers' perceived sacrifices regarding negotiation power and full control of category marketing variables, thus establishing a trade-off for retailers between benefits and sacrifices.