The Monetary System

Book description

A groundbreaking work that paves the way for a new, pro-active financial system

With The Monetary System, innovative author pairing Jean-Francois Serval and Jean-Pascal Tranie devise a comprehensive economic modeling system that accounts for the unprecedented situation facing international and regional economies by developing a controversial new stance on the operation of money in society. Presenting a classification of financial instruments with a view toward their underlying legal structures, the book sheds new light on the present economic and financial problems of slow growth and rising debts, and proposes possible outcomes for the global economy.

The authors have already gained international attention with their novel approach to currency, and now they turn their attention to the social function of money in all its myriad forms. The book provides a way forward in an era of increased life expectancy and other new social patterns and the social role of money provides a framework for understanding intergenerational redistribution—an urgently pressing task in our time.

  • New aggregate financial categories and economic modeling reveal a possible foundation for increased financial stability
  • Companion website includes key mathematical models, accounting standards, and PowerPoint slides
  • Comprehensive theoretical underpinning presents the contemporary model of money as a social contract
  • Insights into the current economic situation make sense of sovereign debt risk in markets around the world

With questions and answers at the end of each chapter, The Monetary System will help you form a new conception of the role of money in society. Improved regulation and tax policies are needed to stabilize the global economy, and this book provides the framework for getting there.

Table of contents

  1. Acknowledgements
  2. Foreword and Introduction
    1. Notes
  3. CHAPTER 1 From Antiquity to Modern Times; Monetary Development Over 5000 Years. What History Explains and Comparison within New Contexts
    1. The Origin of Money; From Antiquity to Modern Times
    2. The Rise and Fall of Civilizations
    3. What Can We Learn from Ancient and More Modern History?
    4. Questions and Answers
    5. Notes
  4. CHAPTER 2 Modern Times – Liberation and Growth of the Money Supply. The Facts Presented in Monetary Units and Resulting Regulatory Needs
    1. Monetary Evolution Backed by Economic Growth
    2. Development of a Global Financial Market Economy
    3. Citizens Emerging in the Process of Financialization
    4. Questions and Answers
    5. Notes
  5. CHAPTER 3 Past and 21st-Century Money Analysis
    1. Defining “Today’s Money”
    2. Money Defined by its Functionality
    3. Links between Monetary Functions
    4. The Intrinsic Definition of Money
    6. Seignorage and the Privilege of Issuing and Stamping Money
    7. Evolution of Money into a Segregated Intermediation Tool with Imprecise Frontiers
    8. Money Today
    9. The Demise of Traditional Conceptual Approaches
    10. The Operational Scope of Money and its Use
    11. The Extension of Money with Disintermediation
    12. Replacement of Bank Loan Financing by Securitization and the Impact of Pro-cyclical Effects
    13. Guarantees on Receivables: A Securitization Multiplier
    14. Extending the Field of Debts and Guarantees
    15. Deviations from Effective Risk Control: The CDS Case
    16. Towards the Full Liberation of Money from Any Referential
    17. Guarantees and the Extension of Monetary Instruments Liberated from Unified Backing and Issuance Constraints
    18. Shadow or Parallel Banking Systems
    19. Before Accounting for Any Transaction – The Sampling Topic. The Mix Up between Numbers and Formulae
    20. Questions and Answers
    21. Notes
  6. CHAPTER 4 The Contemporary Basis for Money Expression: Accounting Ledgers
    1. Book Balances are Either Money or Potential Money
    2. A Single Worldwide Language; Accounting and Financial Statements
    3. Consequences of the Basic Accounting Principles
    4. Concepts and Rules to Report Exchanges and Determine the Image of Financial Statements
    5. The Image Presented by Financial Statements Influences the Analysis of Economic Data and Transactional Exchanges
    6. Direct Systematic Impact of Accounting Standards
    7. Where Misleading Standards Generate Distorted Images
    8. Monetary Aspects of Financial Statements
    9. The Necessary Approach in Accounting: A Hierarchy of Dangerousness
    10. Questions and Answers
    11. Notes
  7. CHAPTER 5 The Regulation and Observation Limits Already Accepted, Compared with the Realities of Modern Exchanges
    1. Monetary Regulation and Follow-up
    2. A Retrospective Analysis of Classic Money in Operation
    3. Governmental and Central Bank Monetary Operations
    4. Traditional Monetary Aggregates
    5. Accepted Concepts that Complement Traditional Monetary Analysis – Limits and Evolution
    6. Traditional Regulatory Measures to Ensure Banks’ Stability Limits
    7. Money Issuance through Central Bank Interventions
    8. The Investment Multiplier
    9. Following Up on Regulating Money Issuance in a Changed Economic Environment. Monetary Supervision: An Ancient Question
    10. The Present-Day Non-utility of Classical Aggregates
    11. New Forms of Monetary Exchange
    12. The Driving Role of Monetary Velocity
    13. Are Central Banks Prerequisite Institutions that Should Remain Independent from Sovereign Authority?
    14. The Insufficiencies of the Current System for Satisfying Information Needs
    15. Questions and Answers
    16. Notes
  8. CHAPTER 6 Redefining the Monetary System and Measurements of Monetary Flow – Towards M5 and M6
    1. At the Core of the Issue: The Definition of Currency
    2. The New Environment: Broadening the Definition of Currency
    3. New Monetary Aggregates Define Extended Concepts of Money
    4. From a Practical Point of View, What are the Data Limitations for Determining the Values of New Monetary Aggregates?
    5. Defining New Money – The Difference Between Shadow Banking Money, Virtual Money and the New Aggregates
    6. Shadow Banking is Different from Virtual Money
    7. Questions and Answers
    8. Notes
  9. CHAPTER 7 The Monetary System
    1. International Exchanges – Interactions and Monetary Zone Coherence
    2. General Framework
    3. Description of the Current Operational System: Distinction between National and International Systems
    4. The Current International System
    5. International Coordination
    6. Micro- and Macro-prudential Surveillance Agencies’ Framework
    7. Coordination Issues Inside the Eurozone as Opposed to International
    8. The Banking Union
    9. The Fiscal Policy Coordination Issue Compared with the USA
    10. The Growing Issues of the Size of the Monetary Zones – Research for Optimum
    11. The Monetary Interaction of Systems
    12. International Microeconomic Regulation Coordination Specifics
    13. Transnational Realities about Financial Instruments’ Markets and Systemic Risk Measurement
    14. Europe and the USA
    15. Allocated Roles and Goals in the International Monetary Set-up
    16. Questions and Answers
    17. Notes
  10. CHAPTER 8 What is the Conceptual Essence of Contractual Money, Constraints and Implications?
    1. The Intrinsic New Conceptual Views on Money
    2. Stability and Guarantees
    3. The Emergence of a New Seignorage
    4. Modelling the Monetary Windbag Analysis
    5. Questions and Answers
    6. Notes
  11. CHAPTER 9 The New Nature of Money in Electronic Times
    1. New Horizons Concerning Exchanges, Time and Guarantees
    2. Money Accumulations and Interactions
    3. The Paradox of Availability of Money Masses as a Policy Tool for their Holders
    4. Questions and Answers
    5. Notes
  12. Conclusion
    1. Notes
  13. Glossary
  14. References
  15. Selected Articles
  16. List of Monetary Central Institutions and Others (International and National) with Websites
    1. International organizations or equivalent
    2. International standard-setting bodies and other groupings
    3. National bodies
    4. Notes
  17. Index
  18. End User License Agreement

Product information

  • Title: The Monetary System
  • Author(s): Jean-François Serval, Jean-Pascal Tranié
  • Release date: December 2014
  • Publisher(s): Wiley
  • ISBN: 9781118867921