Quasi-world money appears more often in the concrete forms of the - TopicsExpress

Toni Prug

Quasi-world money appears more often in the concrete forms of the bank deposit and the banknote. These are related to other forms of money through various channels, one of the most prominent being reserve management. Through this process, hoards of quasi-world money, in other words reserves in the forms of banknotes and deposits, are transformed in particular securities and gold. [...] This paper scrutinised the international reserves of thirteen selected countries. It was shown that there is one pattern in the behaviour of the seven developed countries and another in that of the six developing ones. [...] The common pattern that leading capitalist countries share, irrespective of whether they are persistently on a surplus or on a deficit in their balance of payments, implies that the US does not possess a unique position and that the US Dollar is a quasi-world money primus inter pares. The possession of reserves reflects a structured hierarchy in quasi-world moneys. This remark clearly rejects the argument that the US is opposite to the rest of the world; rather, the US Dollar is leading the way in a process that is open to others and competition between moneys may result in the enforcement of the US Dollar or in becoming weaker. - RMF Discussion Paper no 46, International reserves in the era of quasi-world money, by George Labrinidis

Posted on: Tue, 14 Oct 2014 12:10:50 +0000

Quasi-world money appears more often in the concrete forms of the - TopicsExpress

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