هوتفوريكس الهند مراجعة روتليدج

- نينوديزاين - ما الأخبار - 25 أكثر جذابة أبيض وأسود وورد المواضيع - 15 بريستاشوب جميلة مواقع التجارة الإلكترونية - حر ممتاز HTML5 السيرة الذاتية قالب السيرة الذاتية - أعلى 15 HTML5 قوالب الموقع للشركات الأعمال والمالية - أفضل 15 مواقع HTML5 مواقع قوالب خاصة ل أنت - 20 أفضل مجاني رائع جكري غاليري و سليدشو الإضافات - مجانا المهنية HTML5 / CSS3 السيرة الذاتية قالب السيرة الذاتية - موغو: صفحة واحدة مجانا HTML5 قالب CSS3 - 18 رهيبة المواد مفاهيم التصميم في الرسوم المتحركة - 16 الرسوم البيانية والرسوم البيانية الجميلة لنظرية جسمونيتاري الزاوي ويناقش في أول المادتين تحت هذا الدخول وفي تفضيل السيولة والفوائد. بالنسبة للسياسات واملؤسسات النقدية، انظر املادة األخرية حتت هذا اإلدراج واملصرفية املصرفية، الوسطاء املركزيني للائتمان االئتماني والسياسة النقدية. يتم تغطية المواد ذات الصلة في التضخم والانكماش. للحصول على الجوانب الدولية من المال، انظر الاقتصاد النقدي الدولي. وقد تراكم مصطلح المال هذه الثروة من الدلالات والاستخدامات المختلفة التي ربما تكون أكثر قابلية للاستخدام كصفية بدلا من اسم. ويبدو أن التعريف الأكثر فائدة للمصطلح على أنه اسم سائل للغاية، ويقاس بوحدة قياسية للحساب وقادر على التأكد من تفريغ الديون المعبر عنها في تلك الوحدة. كما هو مطبق على الولايات المتحدة في الوقت الحاضر، ويشمل هذا التعريف في المال الأسهم المتداولة من تغيير معدني صغير، ملاحظات الاحتياطي الاتحادي والعملة الورقية الأخرى، وأيضا الأوراق المالية من الودائع المصرفية التجارية مع امتيازات التحقق. وبما أن التعريف الذي يقترحه للتو يجعل المال مسألة ذات درجة (بسبب النسبية المتأصلة في المصطلحات السائلة للغاية وباليقين)، فقد يفسر إما أن يشمل أو يستبعد من رصيد الأموال في الولايات المتحدة هذه المطالبات السائلة مثل وشهادات الإيداع الصادرة عن المصارف التجارية، وأذون الخزانة، وودائع الادخار، والأسهم في جمعيات الادخار والقروض. وأينما كانت الحدود بين المال وما يدعوه صندوق النقد الدولي في مجموعاته شبه نقدية، يجب أن نتوقع دائما أن نجد بعض أنواع الأموال شبه التي ترتب تقريبا في أقصى الحدود النقدية للنسب النسبية ذات السيولة العالية والقادرة على اليقين من الوفاء بالديون . ويعني التعريف المقترح وجود اختلافات في قائمة الأشياء التي تشكل نقودا بين مجتمعات مختلفة ومن خلال الوقت في مجتمع معين. في حالات نادرة حيث توجد انقسامات حادة بشكل غير عادي في المواقف والتوقعات داخل مجتمع معين، بل قد تنطوي على أموال مختلفة لمجموعات مختلفة داخل ذلك المجتمع. ومن الواضح أن وحدة المفاهيم الأساسية للحسابات والديون والأصول السائلة يجب أن تفسر لوضع المحتوى في التعريف المقترح للمال. وحدة الحساب تعني وحدة) مثل الدوالر األمريكي (يتم قبولها بموجب اتفاقية) سواء بدعم أو بدون ضغط داعم من الحكومة (في مجتمع لتقييم السلع والخدمات المباعة، لحساب التكاليف، لحساب الثروة، . وقد استخدمت هذه الوحدات لتسهيل التفكير في المسائل الاقتصادية من خلال الكثير من تاريخ البشرية. في سجلات الكتاب المقدس، على سبيل المثال، نجد في وقت مبكر من سفر التكوين 23 حسابا لإبراهيم شراء حقل لسعر كامل من أربعمائة شيكل من الفضة وفقا للأوزان الحالية بين التجار والعهد الجديد صور يسوع كما اعتبر من الممنوح أن الناس غير المتطورين الذين خاطبوا أمثاله يمكن أن يفكر بسهولة في الوحدات النقدية. وكما يتضح من حقيقة أن وحدات الحساب الأكثر جدارة (الشيكل والجنيه وما شابه ذلك) تتوافق مع وحدات الوزن، فإن معظم المجتمعات حتى وقت قريب قد فكرت في وحدات حسابها بأنها تعبر عن قيمة الوزن المعلن للذهب أو الفضة ولكن منذ أن جاء النقود الورقية إلى الاستخدام العام في القرن التاسع عشر، وحدات الحساب أصبحت أكثر وأكثر تجريدا. وتجدر الإشارة إلى أن المجتمع في وقت معين قد يستخدم وحدة حساب واحدة أو أكثر. والدين هو التزام من جانب وحدة اقتصادية واحدة (شخص أو شركة أو هيئة حكومية) إلى جهة أخرى يعبر عنها بوحدة حسابية موحدة. أما بالنسبة للمدين، فيعتبر الدين سلبيا في وحدة الحساب، في حين يعبر عن أنواع أخرى من الثروة السلبية (مثل عقد تسليم 000 1 بوشل من القمح في الشهر المقبل) بوحدات مادية. وبما أن كل التزام بالدين هو جانبين، فإن العكس من كل دين مستحق هو مطالبة مستحقة، مما يشكل أصلا (ثروة) للدائن. وتتكون الأموال في معظم مجتمعات الحاضر من المطالبات أساسا على المدينين الذين هم حكومات مركزية أو بنوك مركزية أو تجارية أو مؤسسات ائتمانية أخرى. لكي يكون الأصل سائلا. يجب أن يكون إما المال أو شيء آخر بسرعة وبدرجة عالية من اليقين يمكن تحويلها إلى مبلغ معروف من المال. وبما أن بسرعة وبقدر كبير من اليقين هما تعبيران نسبيان، فمن الواضح أن الأصول يمكن أن تكون سائلة تقريبا. وعلاوة على ذلك، فإن مفهوم الأصول السائلة يكون موضوعيا، ويعرف من وجهة نظر صاحب الدائن، إذا كان الأصل مطالبة بالديون. وعند تصنيف الأصول على أنها سائلة تقريبا، لا ينبغي لنا أن نسأل عما إذا كانت جميع وحدات هذه الوحدة يمكن تحويلها في الواقع إلى أموال، ولكن ما إذا كان يمكن تحويل كل وحدة من هذا القبيل إلى رأي صاحبها. هذا الرأي يعترف بتحول في الرأي مع مرور الوقت. وقد يكون هذا التحول مفاجئا إلى حد كبير، حيث ينظر اليوم إلى أصحاب الأصول غير السائلة التي كانوا ينظرون إليها منذ وقت قصير بأنها ذات سيولة عالية. ويبدو واضحا أن هناك تحولات مفاجئة في السيولة تعزى إلى الودائع في المصارف الفردية خلال الوباء الكبير الذي نجم عن فشل المصارف في الولايات المتحدة في الفترة 1930-1933. وقد يكون هناك أيضا مثل هذا التحول المفاجئ في السيولة المنسوبة إلى الأوراق المالية الحكومية في وقت الاتفاق النقدي لعام 1951، الذي أنهى الدعم الثابت لأسعار الأوراق المالية الحكومية من قبل مجلس الاحتياطي الاتحادي. وتتألف معظم الأصول السائلة في الولايات المتحدة من مطالبات قصيرة الأجل لدى الحكومة الوطنية، أو لدى مصارف الاحتياطي الاتحادي، أو لدى المصارف التجارية، أو مؤسسات الائتمان غير المصرفية، ولا سيما بنوك الادخار المتبادلة، ورابطات الادخار والقروض، وفي رأي بعض المحللين ، وكذلك الاتحادات الائتمانية وشركات التأمين على الحياة. وبالنسبة لبعض الحائزين، وفي بعض الحالات، قد تشمل الأصول السائلة مخزونات للسلع، ومطالبات قصيرة الأجل على شركات ليست مؤسسات ائتمان، وأوراق مالية حكومية طويلة الأجل، وحتى أسهم مدرجة. وبالنسبة للحائزين في البلدان الصغيرة، يمكن أن يتألف جزء كبير من رصيد الأصول السائلة من مطالبات على المصارف والهيئات الحكومية وما إلى ذلك خارج البلد المعني. وقد ينطوي استخدام مثل هذه المطالبات الأجنبية أو لا ينطوي على استخدام وحدات أجنبية للحساب في المعاملات والحسابات المحلية. ويمكن أن يكون معنى المال أكثر من ذلك بالرجوع إلى مصطلحين آخرين، لا يستخدمان في التعريف المقترح. المناقصة القانونية هي التي تحددها القواعد الحكومية كوسيلة مرضية لتسوية الديون في حالة النزاع. يجب أن يكون كل ما هو العطاء القانوني المال ولكن في كثير من الأحيان (كما هو الحال مع فحص الودائع في الولايات المتحدة) قد يتم استبعاد أجزاء كبيرة من الأوراق المالية من المناقصة القانونية. ولكن يمكن للمرء أن يعيد تعريف تعريف المال الذي هو من قبل العرف تعامل مثل العطاء القانوني. ويمكن تعريف المعيار النقدي بأنه علاقة ثابتة بين وحدة الحساب والسلعة المعيارية. هذا المعيار هو، في تعريف مستوحى من د روبرتسون، وهو الترتيب الذي تحتفظ البلاد قيمة وحدة نقدية وقيمة وزن محدد من الذهب أو سلعة قياسية أخرى على قدم المساواة مع بعضها البعض (1922، ص. 134). في معيار الذهب أو الفضة الكامل، مثل وجودها في العديد من البلدان قبل الحرب العالمية الأولى، تم الحفاظ على هذه المساواة في القيمة من خلال تحويل مجاني للمعادن النقدية، والعملات المعدنية، والأموال الورقية. مثل هذا الترتيب على أساس الذهب (أو ربما على معيار متعلق بنظام المعدنين مع كل من الذهب والفضة النقود من الوزن الكامل) اعتبرت طبيعية لاقتصاد صناعي متقدم. ومع اختفاء العملات الذهبية، تم تعديل المعيار في معظم مراكز التعامل في قضبان الذهب النقدي إلى المتعاملين الرسميين، وتلاشي تقليد الدوام في الترتيبات النقدية. ويمكن وصف الولايات المتحدة اليوم بأنها تستخدم معيارا محدودا ومؤقتا لسبائك الذهب، وستطبق أوصاف مماثلة على البلدان الصناعية الرئيسية الأخرى. ويختار كثير من البلدان معاملة وحدات العملة في بلدان أخرى كسلع أساسية معيارية، ويمكن وصفها على أساس معيار صرف الجنيه الاسترليني أو معيار صرف الدولار. انظر الاقتصاد النقدي الدولي. مادة عن التنظيم النقدي الدولي. وتجدر الإشارة إلى أن العديد من الاقتصاديين يفضلون تحديد الأموال بشكل غير رسمي أكثر مما هو مقترح أعلاه: ببساطة باعتبارها وسيلة الدفع. هذا هو وسيلة سهلة ومفيدة لنقل الانطباع العام الصحيح. ولكن من الصعب إعطاء معنى دقيق لوسائل الدفع. وبشکل صارم، فإن وسائل الدفع الفوري لمعظم السلع والخدمات المباعة هي إنشاء ائتمان للکتتاب: يعترف المشتري بديون للبائع للبضائع الموردة أو للخدمات المقدمة. (في الاجتياح الواسع للعمليات الاقتصادية، النقدية وحمل المعاملات استثنائية). ولكن لا الاقتصاديين يجد من المناسب اعتبار الائتمان الكتاب هو الشكل الأساسي للمال. إن اعتماد تعريف وسائل الدفع من دون الحصول على ائتمان كتابي على أنه نقود ينطوي على ضمان أن السلع غير مدفوعة حقا حتى يتم تسديد رصيد الكتاب المعني بشيك أو عن طريق تحويل عملة ورقية. وثمة تعريف بسيط آخر يقترح في كثير من الأحيان من المال هو أن البائع سوف تقبل من المشتري الذي وضعه الائتماني غير معروف. وقد يكون ذلك صياغة مفيدة جدا في البلدان التي تدفع فيها عادة جيرو (نظام مدفوعات يستخدم في أجزاء من أوروبا). ولكن لديها عيب استبعاد استبعاد الودائع كشكل من أشكال عيب المونيا الذي هو قاتل لتحليل اقتصاد الولايات المتحدة وعدد من البلدان المتقدمة الأخرى. الدور التحليلي للمال في الاقتصاد واحدة من المشاكل الرئيسية في الاقتصاد الحالي هو دور المال والأصول السائلة الأخرى في هيكل القرارات الاقتصادية بشكل خاص في قرارات الشركات والأسر لإنقاذ والاستثمار في الأصول الحقيقية المعمرة، مثل والمصانع، والآلات، والمنازل، والمركبات. وبصفة عامة، فإن الأموال المتاحة لشركة أو أسرة للاستثمارات في غضون فترة محددة تتمثل في وفوراتها خلال الفترة (مع الأخذ في الحسبان المبلغ الإجمالي للإدخار ليشمل تكاليف الاستهلاك وما شابه ذلك)، بالإضافة إلى صافي الاقتراض، بالإضافة إلى أي تخفيض يمكن أن يحدث في حيازاتها من الأصول السائلة. وفي أي حالة معلنة، عادة ما يكون هناك شيء يمكن اكتسابه للشركة أو الأسرة المعيشية من خلال استثمار المزيد، وهو أمر يمكن الحصول عليه عن طريق تخفيض الدين بدلا من زيادةه، وأيضا شيء يمكن اكتسابه (في شكل زيادة الاستهلاك أو زيادة التوزيع من أرباح الشركات لأصحابها) عن طريق الادخار أقل. وبالنظر إلى حجم الدخل الحالي، وكلما زاد المخزون من الأصول السائلة، كلما كان من الممكن تحقيق كل هذه الفوائد في وقت واحد. وكلما كان من الضروري ندرة الأصول السائلة، كلما كان من الضروري اختيار التخلي عن منفعة واحدة لجني آخر. ومن ثم، فإن كفاية الأصول السائلة في حيازة شركة أو أسرة تعتبر حافزا للاستثمار، في حين ينظر إلى عدم كفاية الأصول السائلة كحافز لإنقاذ الاستثمار والحد منه. ومن الواضح من التجربة أن الاستجابة للانفاق على حيازة المال والأصول السائلة الأخرى هي، وهي دورة الإدارة التي تفوق إيصالات بشكل كبير لجعل المخزونات السائلة أسفل بسرعة إلى أزمة نادرة جدا. وفي معظم المجتمعات، تشعر الشركات والأسر والحكومات التي تمثل الجزء الأكبر من حيازات الثروة والعمليات الاقتصادية بالحاجة إلى الاحتفاظ بحيازات كبيرة من الأموال والأصول السائلة الأخرى. إذا قمنا بقياس المال بمجموع العملة من جهة إلى أخرى بالإضافة إلى فحص الودائع (والتي، كما رأينا في البداية، هو القياس الذي يتطابق إلى حد ما مع التعريف المقترح)، والقطاع الخاص من الاقتصاد الأمريكي في السنوات الأخيرة قد عقدت مخزون نقدي يعادل تقريبا ربع الناتج القومي الإجمالي، وبالإضافة إلى ذلك، وقد عقدت الأصول السائلة الأخرى ما يعادل تقريبا إلى منتج نصف سنة. دوافع لعقد المال. وقد طور الاقتصاديون النقديون مجموعة مثيرة للاهتمام من الفرضيات حول دوافع الاحتفاظ بالمال. وقبل الكساد الكبير الذي حدث في الثلاثينيات من القرن العشرين، كان التركيز في المقام الأول على المعاملات هو الدافع إلى الحاجة إلى الاحتفاظ بمخزون من المال من أجل التخلص من مخالفات التدفق والتدفق، وحمل صاحب الحصة السابقة في حيازاته المالية. خلال ثلاثينيات القرن العشرين، بقيادة جون ماينارد كينز، تحول التركيز إلى الدافع المضاربي فائدة الحصول على المال في حين أن المرء ينتظر الانخفاض المتوقع في سعر بعض الأصول البديلة قد تكون مهتمة بالشراء. وكان من الواضح أن هناك حاجة إلى بعض هذه العناصر في النظرية النقدية لتفسير الانخفاض الحاد في الثلاثينيات من سرعة تداول نسبة النقود في المدفوعات النقدية إلى المخزون النقدي الذي يجب أن يبقى ثابتا إلى حد ما إذا كان الدافع وراء المعاملات هو المهيمنة. وبدون التخلي عن أي من هذه الدوافع التي تم التأكيد عليها سابقا، ركز الاقتصاديون النقديون في السنوات الأخيرة بشكل متزايد على الدافع التحوطي فائدة الحصول على المال للتخفيف من عدم اليقين. إن التفسير الجذاب للفوائد المستمدة من الحفاظ على هامش الأمان في حيازات الأموال تلك هو مبدأ الربط بين المخاطر. وإذا كانت الشركة أو الأسرة المعيشية تفتقر إلى مثل هذا الهامش، فمن المرجح أن يؤدي تطور غير متوقع غير متوقع إلى نشوء أزمة من شأنها أن تجلب المزيد من الأحداث غير المواتية. ولكن إذا كان التأثير السلبي للحدث الأول يمكن أن يؤخذ في خطوة، فإن ضعف المخاطر يضعف، ويمكن تجنب الأحداث غير المواتية الأخرى. وباستثناء الجوانب قصيرة الأجل جدا لدوافع المعاملات، يمكن تقديم كل هذه الدوافع للحصول على المال على الأقل بشكل جيد إلى حد ما من خلال الاحتفاظ ببعض أنواع الأصول السائلة غير النقدية. ويتكون المال كما هو محدد عادة من عناصر (عملة ورقية وودائع فحص) لا تسفر عن دخل نقدي، في حين أن الأصول السائلة غير النقدية تسفر عن هذا الدخل. ومن ثم، فإنه يدفع لصاحب الحق أن يحل محل الأصول السائلة الأخرى مقابل المال حتى النقطة التي تكون فيها الوحدة المتبقية المتبقية من المال لديها مزايا صافية تساوي دخل الفائدة المتنازل عنه. ومن النتائج العملية لهذه الحقيقة أن المؤسسات المالية التي تشكل خصومها أصولا سائلة غير نقدية لدى الجمهور لديها حافز لتصميم المطالبات التي تقدمها لتقديم مجموعات جذابة من السيولة والدخل. ويمكن النظر إلى عمل هذا الحافز لتضييق الفجوة النوعية بين المال والبدائل المالية في التطور السريع خلال الستينات من شهادات الإيداع والمذكرات الرأسمالية التي تقدمها المصارف التجارية في السوق المفتوحة. النتيجة النظرية للحقيقة نفسها هي أنه يصبح من المثير للاهتمام النظر في الطلب على المال في الفرص من حيث التكلفة. وبغية تطوير رؤية كينزية، ركز العديد من االقتصاديين النقديين تحليلهم على وظيفة تفضيل السيولة. الذي يعامل المخزون من المال الذي سيختار الجمهور لعقد وظيفة عكسية من سعر الفائدة التي يمكن أن تكتسب على استخدامات بديلة للأموال ترى تفضيلات السيولة. خلق المال إن العمليات التي تجلب أرصدة الأموال إلى الوجود، والتي توزعها بين أصحاب مختلفين، هي أفضل ما يمكن رؤيته من حيث المعاملات بين مختلف قطاعات اقتصاد البلد. في المرحلة الأولى من التحليل، فمن المريح الاعتراف قطاعين فقط. الأول هو ما يسمى بالشركات غير المصرفية التي تروج للأسر المعيشية والشركات الأخرى غير البنوك والحكومات المحلية من خلال التأثيرات على الحوافز في هذا القطاع التي من المفترض أن تؤثر التأثيرات النقدية على الادخار والاستثمار. أما القطاع الثاني فهو القطاع المولد من الحكومة الوطنية والبنك المركزي (في الولايات المتحدة الأمريكية ونظام الاحتياطي الاتحادي) والمصارف التجارية (التي تشمل ودائع ودائعها التي يمكن استخدامها في الدفع بشيكات أو جيرو النظام). ويشكل رصيد المال من الأصول بالنسبة للجمهور غير المصرفي والتزاما للقطاع المولود للأموال. طريقة بسيطة لعرض العمليات التي تولد المال هو التفكير في تدفق الشيكات وتأثيرها على حيازات الجمهور غير المصرفي. أي شيك يتم سحبه من قبل أحد أعضاء الجمهور غير المصرفي ويكون مستحقا لعضو آخر له تأثير صاف على الصفر على إجمالي رصيد النقود. ويوسع المستفيد المدفوع له من المال عندما يودع الشيك، ولكن حساب الأدراج يخفض بالضرورة بمقدار مماثل، وبالتالي فإن المجموع دون تغيير. (قد تنشأ تغيرات اسمية مؤقتة من التغيرات في تعويم الشيكات التي تم سحبها ولم يتم خصمها بعد، حيث أن هناك في كثير من الأحيان انتشارا لعدة أيام بين التواريخ التي يتم فيها سحب السحوبات والودائع في سجلات مصرفية وفي دفاتر حسابات المودعين ). ولكن الآثار الصافية على المخزون النقدي ليست صفرا عندما تعبر الشيكات الحدود بين القطاعين. على سبيل المثال، عندما يقوم موظف حكومي بإيداع راتبه، لن يتم خصمه من حساب أي عضو آخر من الجمهور غير المصرفي، بحيث تكون الصفقة متغيرة. في الاتجاه الآخر، إذا قامت شركة تجارية بفحص لسداد قرض بنكي، لا يتم إيداع هذا الشيك في حساب أي عضو آخر من الجمهور غير المصرفي، بحيث تكون الصفقة تناقصة في المال. وتتواصل باستمرار المعاملات في كلا الاتجاهين عبر الحدود بين القطاع غير المصرفي والقطاع المولد للأموال، ويعتمد التغير الصافي في المخزون النقدي على الفرق الصافي بين التدفق النقدي المتزايد والتدفق النقدي. وتجدر الإشارة إلى أن الوضع معقد بسبب وجود مسؤوليات القطاع المولد للأموال التي لا تعامل كجزء من المخزون النقدي. فعلى سبيل المثال، قد يكون الموظف الحكومي قد أودع راتبه في حساب ادخار في مصرفه بدلا من حسابه. للتعامل مع هذه المضاعفات، يمكن للمرء، مثل ميلتون فريدمان (انظر فريدمان أمب شوارتز 1963)، أن يعتمد تعريفا عمليا للمال يشمل الأموال النقدية للمصارف التجارية. أو قد يعتمد أحدهم (مثل صندوق النقد الدولي) على مفهوم شبه الأموال، حيث ينظر إلى التغييرات التي ينظر إليها على أنها استخدام بديل للأموال المحتملة الناتجة عن المدفوعات الصافية من القطاع المدر للدخل إلى الجمهور غير المصرفي. ويمكن أن تكون المعاملات في أي من الاتجاهين بين القطاعين على حساب الدخل أو حساب تحويل الثروة. راتب الحكومة المشار إليه أعلاه هو معاملة حساب الدخل، وهو شيك لدفع المنتجات الحالية للقطاع الخاص التي يتم شراؤها للاستخدام الحكومي، أو شيك أرباح لأحد حاملي البنك. وفي الاتجاه الآخر، يمكن اعتبار دفع الضرائب أو دفع الفوائد على القروض المصرفية مدفوعات لحسابات الدخل من القطاع غير المصرفي إلى القطاع المدر للدخل. ويمكن أن تمثل معاملات تحويل الثروة شيكات يرسمها أفراد الجمهور غير المصرفي لدفع اشتراكاتهم في الأوراق المالية الحكومية الصادرة حديثا أو، في الاتجاه الآخر، عن طريق شيكات مسحوبة لدفع ثمن شراء السوق المفتوحة من الأوراق المالية الحكومية من قبل مجلس الاحتياطي الاتحادي من البائعين غير المصرفية. وباستثناءات طفيفة، فإن معاملات حساب الدخل التي تؤثر على رصيد الأموال هي المعاملات التي تظهر في الحسابات الاجتماعية بين إيصالات ونفقات الحكومة المركزية وتدخل في مجال السياسة المالية، في حين أن معاملات تحويل الثروة التي تؤثر على رصيد والمال هو القروض المصرفية أو المعاملات الحكومية والديون التي تقع بوضوح في نطاق السياسة النقدية. وثمة نقطة نزاع أساسية بين الاقتصاديين الذين يعتقدون إلى حد كبير من حيث السياسة المالية وأولئك الذين يطلق عليهم أحيانا أحادية النقد هو ما إذا كان تأثير زيادة المخزون النقدي سيكون مختلفا وفقا لما إذا كان ينشأ في حساب الدخل أو في الثروة - Transfer حساب المعاملة. نظريات توفير النقد نظريات لتوريد النقود تركز على معاملات تحويل الثروة التي تقوم بها البنوك التجارية. ينظر إلى معامالت حسابات الدخل في الحكومة على أنها نواتج ثانوية للسياسة المالية، ويتم النظر في معامالت تحويل الثروة من قبل الخزينة والبنك المركزي من حيث القرارات المتعلقة بالسياسات بدال من آليات االستجابة غير الشخصية التي تنسب إلى القطاع الفرعي المصرفي . وعلى وجه الخصوص في الولايات المتحدة، مع تشتت نشاطها على نطاق واسع بين مصارف الوحدات، يجب على المرء أن ينظر إلى خلق المال عن طريق النشاط المصرفي كظاهرة جماهيرية توجهها الحوافز والقيود، بدلا من أن يكون قرارا بسيطا لسياسة عالية، على سبيل المثال، وهو خفض في معدلات ضريبة الدخل الاتحادية. وفي هذا اجلزء من حتليلنا، يجب علينا أن ننظر داخل القطاع املولود للنقد، وأن نميز البنوك التجارية عن القطاع الفرعي املولود من االحتياطي البنكي املكون من احلكومة الوطنية والبنك املركزي. لدى البنوك التجارية حافزا متواصلا لتنفيذ عمليات زيادة الأموال، وذلك لتوسيع قروضها واستثماراتها لأن دخلها ينشأ كفوائد على هذه الأصول. وعلاوة على ذلك، هناك عادة إمدادات متاحة من هذه الأصول للحصول على قروض، هامش من المقترضين غير راضين عن الاستثمارات، كتلة من السندات المناسبة لملكية البنك التي يحتفظ بها الجمهور غير المصرفي ويمكن شراؤها في السوق المفتوحة. والبنوك حرة في الرد على هذا الحافز إلا إذا كان لديها هامش على متطلبات الاحتياطي في حيازاتها من أرصدة الاحتياطيات لدى البنوك الاحتياطية الفدرالية (بالإضافة إلى نقدها)، أو أنها مستعدة لاقتراض الاحتياطيات بالخصم لدى بنوك الاحتياطي الفدرالي في وجه مختلف الرادع يرى المصرفية. وسط . البنك المركزي قادر على تسهيل التوسع في الأصول المصرفية، وبالتالي من الأسهم النقدية، أو تطبيق الضغط نحو الانكماش. ولدى نظام االحتياطي الفيدرالي سلطة ضمن حدود واسعة لتختلف متطلبات االحتياطي القانوني. وعلاوة على ذلك، يمكن زيادة الكتلة الإجمالية للاحتياطيات من خلال شراء السوق المفتوحة من الأوراق المالية الحكومية من قبل مجلس الاحتياطي الاتحادي أو انخفاضها من خلال مبيعات السوق المفتوحة. ويمكن تغيير رادع الخصم عن طريق تغيير سعر الخصم الرسمي أو بالاقتناع الأخلاقي الرسمي. صحيح أن هناك بعض القوى الخارجية التي تسيطر على البنك المركزي والتي تغير موقف احتياطي البنك يمكن أن تتغير بشكل واضح في تدفق المدفوعات الدولية التي توسع أو تعاقد الأموال الاحتياطية للبنوك التجارية، فضلا عن مركز السيولة الدولية للبلد ككل ، وتدفقات العملة من جهة إلى أخرى داخل وخارج الدورة الدموية. ولكن على العموم، يمكن تعويض هذه القوات أو تعزيزها باتخاذ تدابير تحت تصرف البنك المركزي. بالنسبة ألي بنك تجاري فردي، يتم تحديد حدود توسع القروض واالستثمارات خالل فترة قصيرة من خالل مركز االحتياطي األولي) الزيادة عن متطلبات االحتياطيات التي يحتفظ بها، باإلضافة إلى المبلغ الذي يرغب في اقتراضه (، باإلضافة إلى المبلغ) من الودائع اإلضافية التي يمكن أن تجتذب خالل هذه الفترة، ناقصا االحتياطيات المطلوبة مقابل تلك الودائع اإلضافية. ولكن إذا قمنا بتحويل اهتمامنا من البنك الفردي إلى النظام المصرفي التجاري ككل، فإن حدود التوسع تصبح أقل مما يمكن للمرء أن يفكر للوهلة الأولى، لأن النظام ككل مبلغ الودائع الإضافية التي يمكن اجتذابها سوف يكون تقريبا نفس المبلغ الذي تولده المعامالت التي تزيد األصول المكتسبة للبنوك ككل. (الفرق الرئيسي الوحيد بين المبلغ الذي تم إنشاؤه والمبلغ الذي يمكن اجتذابه هو جزء من أي زيادة في مجموع حيازة المال من جهة إلى جنب بالإضافة إلى الودائع المصرفية التجارية، والتي سوف يصر الجمهور على اتخاذ بالعملة اليدوية .) يمكن أن يستمر النظام ككل في التوسع طالما أن هناك بنوك تجارية لديها احتياطيات زائدة أو على استعداد لزيادة خصوماتها في الاحتياطي الفدرالي. ووفقا للافتراضات، فإن المرء يجعل من تقسيم الزيادة إلى الأموال المباشرة، والتحقق من الودائع (الطلب)، والودائع لأجل، يمكن حساب قوة الإقراض غير المستخدمة التي ينطوي عليها مبلغ معين من الاحتياطيات الفائضة الأولية على أنها تتراوح بين ثلاثة وخمسة أضعاف الاحتياطيات الفائضة الأولية. وبالنسبة ألي فئة أخرى من مؤسسات االئتمان، فإن حدود التوسع في األصول المدرة للدخل هي أشبه بالحدود المطبقة على المصرف التجاري الفردي من تلك المطبقة على البنوك التجارية ككل. وعلى سبيل المثال، فإن تسريع إقراض الرهونات العقارية من قبل رابطات الادخار والائتمان لا يؤدي إلا إلى زيادة مبالغ الأموال التي يحتفظ بها المدخرون في هذه الجمعيات. إذا حصلت هذه الجمعيات على مليون دولار من الاحتياطيات الفائضة (على سبيل المثال، من خلال تخفيضات في بنك القرض السكني الفدرالي)، فإن المبلغ الإضافي الذي يمكن أن يقرضه يزيد بنحو مليون دولار تقريبا. وبالتالي، فإن المبادرة في التوسع الائتماني غير المصرفي تأتي إلى حد كبير من المدخرين الذين يقررون أن يعهدوا بأموالهم إلى هذه المؤسسات على الرغم من أن المؤسسات لديها بالطبع مجالا لجعلها جذابة للمدخرين. وبقدر ما يعيد المجتمع تنظيم نفسه لزيادة الاستفادة من هؤلاء الوسطاء الماليين، فإن الأصول السائلة تتسع بالنسبة للنشاط. على سبيل المثال، لنفترض أن مجموعة من المدخرين كانوا في العادة من استخدام تدفق الادخار من سنة إلى أخرى لإقامة منازل سكنية واستئجار الشقق للأزواج المتزوجين حديثا. وإذا قرر هؤلاء المدخرون الآن أن يضعوا أموالهم مع جمعيات الادخار والقروض، التي بدورها تقرض الأزواج الجدد الذين يشترون منازل جديدة، فإن مقدار النشاط الحقيقي في الاستثمار في الإسكان قد لا يتغير. ولكن المدخرين (الذين حصلوا على أسهم الادخار والقروض القابلة للاسترداد في غضون مهلة قصيرة بدلا من ملكية المنازل السكنية) سيكون لديهم أصولهم في شكل أكثر سيولة، في حين أن السيولة من أصحاب المنازل الجديدة لن تكون أكثر ضعفا من احتمال دفع الإطفاء والفائدة على الرهون العقارية مما كان عليه في احتمال دفع الإيجار شقة المقابلة. وبناء على ذلك، سيصبح الاقتصاد أكثر سيولة في نهاية الفترة التي يتم فيها استبدال التمويل العقاري بالادخار والقروض بالاستثمار المباشر من قبل المدخرين في المباني الجديدة. والحجة مماثلة لأنواع أخرى من التوسع في مؤسسات الائتمان. انظر الوسطاء الماليين. األثر االقتصادي للمال يقدم االقتصاد النقدي مجموعة واسعة من وجهات النظر المتنافسة حول تأثير القوى النقدية على األسعار والنشاط االقتصادي. ويتعلق اختلاف الآراء، في جزء كبير منه، بتفسير أدلة تاريخية وإحصائية غامضة إلى حد ما. من حيث المبدأ، فإن أتباع كل مدرسة نقدية اليوم يعترفون بإمكانية تصور عالم تكون فيه المدارس المفضلة الأخرى ذات النفوذ النقدي ذات أهمية قصوى، ولكن كل مدرسة تميل إلى القول بأن قناة التأثير المفضلة لها واقعيا وكميا هي والأهم من ذلك بهامش حاسم. وعلاوة على ذلك، فإن المدارس المختلفة لا توافق بشدة على مستوى السياسة النقدية. وبالتالي، يمكن أن يعطي الانطباع الصحيح من خلال تناقض عدة أنواع متميزة من النظرية بشأن التنازلات الثانوية التي قدمتها كل مدرسة للآخرين. ولمسح الأرض، يمكننا أن ندرس بإيجاز العديد من النظريات التي لم يتم التحقق منها في الماضي من قبل الاقتصاديين المؤثرين ولكن من دون دعم مهني اليوم. والعنصر املشترك لهذه النظريات املهينة التي ينظر إليها االقتصاديون النقديون اليوم في حالة تنكر هي وجهة النظر) التي ذكرها صراحة العديد من النظراء األكبر سنا والضمني من اآلخرين (أن الحجم الحقيقي للنشاط االقتصادي محكوم بالكامل من قبل القوى غير النقدية، أن دور التحليل النقدي يكمن فقط في تفسير التغيرات في القوة الشرائية للنقود (أي، التبادل لبعض الأرقام القياسية للأسعار). ولكل نظرية من النظريات المشوهة إضافة إلى عنصر رئيسي آخر على الأقل يعتبره الاقتصاديون النقديون اليوم غير مقبول. ورأت النظريات الإحصائية أن قيمة المال تحددها فعل إرادة من جانب الحكومة، في حين تشير الملاحظة إلى أن التغيرات في مستوى الأسعار تحدث عادة ضد إرادة الحكومة. وقد اعتبرت نظريات السلع قيمة الأموال المنقولة من أسواق السلع الأساسية للذهب والفضة، والتي يمكن تفسيرها عن طريق تحليل العرض والطلب يشبه أساسا ما ينطبق على الحديد أو القطن. وبالنظر إلى الطابع التجريدي المتزايد للمال وخصائص سوق الذهب التي تنبع تحديدا من الدور النقدي للذهب، يبدو من المعقول وصف الجانب السلعي من الذهب الذي يهيمن عليه الجانب النقدي. نظرية الكمية الكلاسيكية من المال (كما ازدهرت قبل عام 1929) أخذت سرعة تداول ثابتة. واليوم تعتبر جميع المدارس، بما في ذلك منظمو الكميات الحديثة، السرعة كمتغير يجب أن يفسر سلوكه النظرية النقدية. في حين أن كل من النظريات السابقة يجب اعتبارها مصداقية باعتبارها نظرية عامة من المال، والاقتصاديين في الوقت الحاضر الاستفادة كثيرا من نظريات الغرض الخاص التي تحتوي على عناصر هامة من هذه النظريات القديمة. على سبيل المثال، هناك بعض التقارب مع نظريات الإحصاء في النماذج المستخدمة على نطاق واسع والتي تفترض أن مستويات الأسعار لتكون ثابتة أو التي تأخذ بعض العناصر الرئيسية في هيكل الأسعار (على سبيل المثال، مستوى الأجور) كمتغير السياسة. وعند النظر في الآثار المحتملة على المدى الطويل للاقتراحات بأن العلاقات النقدية الدولية ينبغي إصلاحها على مقربة من المعيار الذهبي التقليدي، فإن الاقتصاديين اليوم ليسوا من أمثلية هذا النوع من الناس الذين يرفضون مراعاة تكاليف إنتاج الذهب، فضلا عن المضاربات مواقف أصحاب الحيازات الخاصة والحكوميين من الذهب. وعند أخذ هذه العوامل في الاعتبار، فإنها تستخدم تقنيات تحليل السوق مماثلة لتلك المستخدمة في السلع المعمرة الأخرى. ولا يزال من الممكن تطبيق نظرية الكمية الكلاسيكية بثقة على الحالات التي تكون فيها التغيرات في المخزون النقدي ذات حجم هائل. وإذا حدث، كما يحدث في بعض الأحيان، تضاعف مخزونات الأموال في البلد بنسبة 10 أو 100 في غضون بضع سنوات، يتوقع الاقتصاديون النقديون حدوث تغيير في مستوى الأسعار بنفس الترتيب من حيث أن الكثير من الاقتصاديين النقديين لن يفاجأوا كثيرا إذا زاد عددهم بمقدار عشرة أضعاف ورافقت الأموال النقدية زيادات بمقدار خمسة أضعاف في الأسعار وغيرها من الزيادات بمقدار عشرين ضعفا. ويمكن تصنيف المدارس الحالية للاقتصاد النقدي بشكل جيد إلى حد ما عن طريق تفضيلاتها في وضع نماذج تفسر المسار العام للنشاط الاقتصادي والأسعار في اقتصاد السوق. في أحد المدرجات تقف المدرسة الحديثة نظرية نظرية، التي كتبها ميلتون فريدمان. It pictures changes in the stock of money as the dominant force in any explanation of the course of money payments and draws the policy inference that the sovereign prescription for steady growth without inflation is to engineer a steady growth rate for the money stock about equal to the growth of the economys productive potential. In this theory, velocity is treated neither as a constant nor as an exogenous variable but, rather, as endogenous to the system of interrelations used in the theory. Nevertheless, the forces that govern velocity are not pictured as lending themselves to any sort of policy intervention which might usefully supplement the regulation of the quantity of money. At the other extreme from quantity-theory models stand models that analyze the behavior of economic activity and the price level without including any variable that corresponds to the stock of money. It would be hard to name any economists who would make it a matter of principle to go to this extreme. But the stress, in teaching and in popularized statements about economic policy, on investment as an exogenous variable, and on the determination of activity by investment (mediated by a propensity to consume), is so heavy that this extreme view is likely to be taken as the sum of academic wisdom about macroeconomics by a large proportion of those who have been exposed to economic pedagogy or advice. The associated view of economic policy is that fiscal policy is all-sufficient and monetary policy is inconsequential. Much more representative of professional opinion as the academic monetary economists would like it to be understood is what may be called the interest rate school. On the theoretical side, the models typical of this view present the rate of interest as a major influence on investment and, through investment, on economic activity. In policy terms, this school treats the interest rate as the monetary influence on activity par excellence and does not concern itself with any direct influence of the stock of money on activity. (In relation to fiscal policy, the position of this school is likely to be eclectic, looking to an interaction of interest rate policy with such fiscal-policy variables as public expenditure and tax rates.) In the analytical models of this school, a peripheral liquidity-preference function expresses a relation between the money stock and the interest rate. The policy implication drawn may be that the interest rate can be regulated through the stock of money, or that if an appropriate rate of interest is adopted, the stock of money can be allowed to adapt itself to this rate without disturbing other aspects of the economy. Some variants of the interest-rate approach pay a good deal of attention to possible changes within the structure of interest rates: for example, possibilities of relative changes between the interest rates on home mortgages and those on foreign funds invested in treasury bills in New York. This view merges into another position, which in principle is quite distinct from the interest-rate school: that of the credit-availability school The credit-availability doctrine is implicit in many official statements by the monetary authorities of the United States and other countries and has been usefully made explicit by Robert Roosa (1951). This view is that various types of investment may be powerfully influenced by the amount of funds the credit machinery makes available to finance home construction, inventory holding, exports, etc. Relative movements of interest rates may be useful indicators of the forces at work but will not themselves be the effective variable. The stock of money as such does not figure in explanations of activity along these lines, but changes in the stock of money will be by-products of transactions called for to carry out appropriate financing. The size of the monetary expansion that accompanies a given course of economic activity and prices, in this view, may vary substantially according to the financing of the economic activity. Despite the lively controversy among schools, it is hard to see their views as philosophically irreconcilable. Pure models of one or another of the types just sketched illuminate the implications of various hypotheses, can help guide the search for evidence, and may offer useful special-purpose models for work on economic diagnosis and economic policy. But advocacy of any of these views as all-sufficient can be seriously misleading. This is particularly true, in the judgment of the author, of the monetary monism shown by advocates of the modern quantity theory approach and of some variants of the interest-structure approachadvocates who try to explain the flow of payments and economic activity without reference to such variables as taxes, accelerator effects of activity upon investment, changes in the impact of the rest of the world, and so forth. A certain healthy eclecticism, with willingness to be guided by the evidence in the choice of theoretical simplifications, would seem appropriate in the present stage of monetary economics. Albert Gailord Hart Friedman, Milton and Schwartz, Anna J. 1963 A Monetary History of the United States: 1867-1960. National Bureau of Economic Research, Studies in Business Cycles, No. 12. Princeton Univ. صحافة. Keynes, John Maynard (1930) 1958-1960 A Treatise on Money. 2 vols. London: Macmillan. Volume 1: The Pure Theory of Money. المجلد 2: النظرية التطبيقية للمال. Keynes, John Maynard 1936 The General Theory of Employment, Interest and Money. London: Macmillan. A paperback edition was published in 1965 by Harcourt. Nussbaum, Arthur (1939) 1950 Money in the Law. 2d ed. Chicago: Foundation Press. Patinkin, Don (1956) 1965 Money, Interest, and Prices: An Integration of Monetary and Value Theory. 2d ed. New York: Harper. Robertson, D. H. (1922) 1959 Money. Rev. إد. جامعة. of Chicago Press. Roosa, Robert V. 1951 Interest Rates and the Central Bank. Pages 270-295 in Money, Trade and Economic Growth: In Honor of John Henry Williams. نيويورك: ماكميلان. Since men first began to write systematically about economic matters they have devoted special attention to the wide movements in the general level of prices that have intermittently occurred. Two alternative explanations have usually been offered. One has attributed the changes in prices to changes in the quantity of money. The other has attributed the changes in prices to war or to profiteers or to rises in wages or to some other special circumstance of the particular time and place and has regarded any accompanying change in the quantity of money as a common consequence of the same special circumstance. The first explanation has generally been referred to as the quantity theory of money, although that designation conceals the variety of forms the explanation has taken, the different levels of sophistication on which it has been developed, and the wide range of the claims that have been made for its applicability. The broad outlines of the quantity theory of money were fully developed by the eighteenth century. The contemporary economist can still read David Humes essay Of Money (1752) with pleasure and profit and find few if any errors of commission. Reasonably satisfactory attempts at mathematical formulation have been traced back to the eighteenth century (see the references in Marget 1938). And certainly the mathematical formulation given by Simon Newcomb, the eminent astronomer, in 1886 is entirely modern, excepting only the particular symbols used. Knut Wicksell published a highly sophisticated analysis in 1898 that, because it was written in German, had less influence than its excellence justified. The two formulations of the quantity theory that have most influenced modern thinking both date from the end of the nineteenth century (although the dates of their publication are later): Irving Fishers transactions version (1911) and the Cambridge cash-balances version, attributed to Alfred Marshall (1923) and Arthur C. Pigou (1917). After some introductory remarks, this article discusses these two versions and then examines the Keynesian attack on the quantity theory, the post-Keynesian reformulation, empirical evidence bearing on the quantity theory, and finally some policy implications of the quantity theory. In its most rigid and unqualified form the quantity theory asserts strict proportionality between the quantity of what is regarded as money and the level of prices. Hardly anyone has held the theory in that form, although statements capable of being so interpreted have often been made in the heat of argument or for expository simplicity. Virtually every quantity theorist has recognized that changes in the quantity of money that correspond to changes in the volume of trade or of output have no tendency to produce changes in prices. Nearly as many have recognized also that changes in the willingness of the community to hold money can occur for a variety of reasons and can introduce disparities between changes in the quantity of money per unit of trade or of output and changes in prices. What quantity theorists have held in common is the belief that these qualifications are of secondary importance for substantial changes in either prices or the quantity of money, so that the one will not in fact occur without the other. The quantity theory in all its versions rests on a distinction between the nominal quantity of money and the real quantity of money. The nominal quantity of money is the quantity expressed in whatever units are used to designate moneytalents, shekels, pounds, francs, lire, drachmas, dollars, and so on. The real quantity of money is the quantity expressed in terms of the volume of goods and services that the money will purchase. There is no unique way to express the real quantity of money. One way of expressing it, one that is widely used, is in terms of some specified standard basket of goods and services. That is what is implicitly done when the real quantity of money is calculated by dividing the nominal quantity by a price index. The standard basket is then the basket whose components are used as weights in computing the price indexgenerally the basket purchased by some reference group in a base year. Another way of expressing the real quantity of money is in terms of the time duration of the flows of goods and services the money could purchase. For a household, for example, the real quantity of money can be expressed in terms of the number of weeks of the households average level of consumption that it could finance with its money balances or, alternatively, in terms of the number of weeks of its average income to which its money balances are equal. For a business enterprise, the real quantity of money it holds can be expressed in terms of the number of weeks of its average purchases or of its average sales or of its average expenditures on final productive services (net value added) to which its money balances are equal. For the community as a whole, the real quantity of money can be expressed in terms of the number of weeks of aggregate transactions of the community or aggregate net output of the community to which it is equal. For the community, attention has generally centered not on the real quantity of money but on a velocity of circulationwhich can be regarded as the reciprocal of a particular expression of the real quantity of money. The ratio, for example, of the aggregate annual transactions of a community to its stock of money is termed the transactions velocity of circulation of money, since it gives the number of times the stock of money would have to turn over in a year to accomplish all transactions similarly, the ratio of annual income to the stock of money is termed income velocity. In every case the calculation of the real quantity of money or of velocity is made at the set of prices prevailing at the date to which the calculation refers. These prices are the bridge between the nominal and the real quantity of money. The quantity theory takes for granted that what ultimately matters to holders of money is the real quantity rather than the nominal quantity of money they hold and that there is some fairly definite real quantity of money that people wish to hold under any given circumstances. Suppose the nominal quantity that people hold happens to correspond at current prices to a real quantity larger than that which they wish to hold. Individuals will then seek to dispose of what they regard as their excess money balances they will try to pay out a larger sum for the purchase of securities, goods, and services, for the repayment of debts, and as gifts than they are receiving from the corresponding sources. However, one mans expenditures are anothers receipts. One man can reduce his nominal money balances only by persuading someone else to increase his. The community as a whole cannot in general spend more than it receives. The communitys attempt to do so will nonetheless have important effects. If prices and income are free to change, the attempt to spend more will raise the nominal volume of expenditures and receipts, which will lead to a bidding up of prices and perhaps also to an increase in output. If prices are fixed by custom or by government edict, the attempt to spend more either will be matched by an increase in goods and services or will produce shortages and queues. These in turn will raise the effective prices and are likely sooner or later to force changes in official prices. The initial excess of money balances will therefore tend to be eliminated, even though there is no change in the nominal quantity, by either a reduction in the real quantity held through price rises or an increase in the real quantity desired through output increases. Conversely, if nominal balances happen to correspond to a smaller real quantity at current prices than people wish to hold, people will seek to spend less than they are receiving. They cannot in the aggregate do so. But their attempt will in the process lower nominal expenditures and receipts, driving down prices or output and either raising the real balances held or lowering the real balances desired. It is clear from this discussion that changes in prices and nominal income can be produced either by changes in the real balances that people wish to hold or by changes in the nominal balances available for them to hold. Indeed it is a tautology, summarized in the famous quantity equation (to which we shall return) that all changes in nominal income can be attributed to one or the otherjust as a change in the price of any good can always be attributed to a change in either demand or supply. The quantity theory is not, however, this tautology. It is, rather, the empirical generalization that changes in desired real balances (in the demand for money) tend to proceed slowly and gradually or to be the result of events set in train by prior changes in supply, whereas, in contrast, substantial changes in the supply of nominal balances can and frequently do occur independently of any changes in demand. The conclusion is that substantial changes in prices or nominal income are almost invariably the result of changes in the nominal supply of money. Variants of the quantity theory of money are distinguished by the variables that are regarded as most important in determining the real quantity of money that people desire to hold and by the analysis of the process whereby any discrepancy between actual and desired real balances works itself out. The chief issues that have occasioned controversy and conflict are perhaps the definition of money, the importance of transactions motives versus asset motives in the holding of money, the importance of substitution between money and other assets expressed in nominal terms as compared with substitution between money and real goods and services, and the speed and character of the dynamic process of adjustment. We shall have occasion to comment on these below. Fishers transactions approach The quantity equation in transactions form Every payment made by one economic unit in an economyhousehold, business enterprise, or governmental organizationto another can be regarded as the product of a price and a quantity: wage per week times number of weeks, price of a good times number of units of the good, dividend per share times number of shares, and so on. The total volume of transactions during a period of time can thus be regarded as equal to the sum of a large number of such products, say p i t i . where p i is the price and t i the quantity for the i th transaction. Let P be a suitably chosen average of the prices, and let T be a suitably chosen aggregate of the quantities. We then have The total volume of transactions can also be viewed in terms of the medium of exchange used to effectuate them. Let M be the total quantity of money in the economy and V the average number of times each unit of money is used to effectuate a transaction during the year (the transactions velocity). We then have (2) Total volume of transactions MV , or, putting (1) and (2) together, the famous quantity equation Each side of this equation can be broken into subcategories: the right-hand side into different categories of transactions and the left-hand side into payments in different form. Fisher and later writers emphasized in particular the subdivision of the left-hand side into two categories of payments, those effected by the transfer of hand-to-hand currency (including coin) and those effected by the transfer of deposits. Let M stand solely for the volume of currency and V for the velocity of currency, M for the volume of deposits and V for the velocity of deposits. We then can write One reason for the emphasis on this division was the persistent dispute about whether the term money should include only currency or deposits as wellthis dispute was at the center of the banking school-currency school controversy that raged in England in the nineteenth century. Another reason was the direct availability of figures on MV from bank records of clearings or of debits to accounts so that it was and is possible to calculate V in a way that it is not possible to calculate V. As they stand, equations (3) and (4) are identities: The V of (3) or the V and V of (4) are defined as the numbers having the property that they render the equations correct. If P changes from one time period to the next, then so must one or more of the other terms in the equations. That is an arithmetic necessity, not an economic proposition. The identities are useful for economic analysis because they offer a useful classification of the factors at work, a classification into categories each of which contains factors largely independent of those in the other categories. The categories in the quantity equation Consider the fourfold classification in equation (3). صفقة. The physical volume of transactions is denoted by T. It is determined by the resources available to the economy, the efficiency with which they are used, the degree of integration or disintegration of the economy (which determines the number of transactions involved in the production and sale of final goods), and so on. These are the basic physical and operational characteristics of the economy. All quantity theorists, at least since Hume, have recognized that changes in the stock of money may have transitional effects on T. However, they have generally regarded the average level of T and long-run changes in T as largely independent of the quantity of money, although not of the existence of a money economy. Price level. The price level, which is the object of investigation, is denoted by P. It has generally been regarded as the resultant of other forces rather than as itself having any important element of autonomy. Cost-push or profit-push theories of inflation treat it as being to some extent independently determined. Under a regime of widespread government price fixing, it clearly does have some measure of autonomy. Stock of money. The stock of money in nominal units is denoted by M. Its precise definition, as noted before, has been the subject of much controversy. The transactions approach makes it seem natural to define money in terms of its function as a medium of exchange and to include only those means of payments generally acceptable in discharge of debts. Under a gold standard, specie was regarded as money par excellence, and questions were raised about extending the definition to include paper money and then demand deposits transferable by check. Today these would generally be included in the definitions, but there is much controversy about the treatment of other deposits, such as time deposits and savings deposits. On transactions lines, it is argued that such deposits cannot be used to discharge debts without first being converted into either currency or demand deposits. One answer to this argument is that it is also true of some items that all are willing to regard as money. For example, in the United States, 10,000 is the largest denomination of currency. Such a currency note can be used to effectuate few transactions without first being converted into smaller denominations. No issue of principle is involved. However M is defined, equation (3) remains valid, provided V is appropriately defined. The issue is one of the usefulness of one or another definition: what definition of M will have the empirical property of rendering the forces determining the other symbols in the equation as nearly independent as possible of those determining M Whatever the precise definition of M . the factors determining it depend critically on the monetary system and are largely independent of the forces determining T. Two main cases should be distinguished: a commodity standard, of which a gold standard is the most important historical example, and a fiduciary standard. Under a gold standard the amount of money in the gold standard world is determined by the total existing amount of gold, the fraction used as money, and the institutional arrangements determining the superstructure of claims to gold, in the form of currency or deposits, that can be erected on any given stock of gold. Changes in the amount of money depend on costs of producing various quantities of gold, the demand for gold for non-monetary purposes, and the financial arrangements for issuing fiduciary claims to gold. For any one country the situation is somewhat different: the quantity of money is a dependent rather than an independent variable. It must be whatever quantity is consistent with levels of prices and incomes that will maintain balance in its international payments. Gold inflows or outflows tend to keep it at that quantity. Under a fiduciary standard the amount of money is ultimately under the control of the monetary authorities. In practice these authorities have always been governmental agencies. Although they have had the power to control the stock of money, they frequently have not stated their objectives in these terms but have let the stock of money be whatever was consistent with some alternative objective (e. g. given exchange rates or given interest rates). Under either the gold or the fiduciary standard the factors determining M are connected only loosely, if at all, with those we have considered as affecting directly either P or T. It is precisely this clearly perceived independence of the factors determining the quantity of money that has rendered the quantity theory so attractive to economists. Velocity of circulation. We now come to V . the velocity of circulation. This is the core of the quantity theory. It is determined by whatever factors affect, on the one hand, the amount of money people want to hold and, on the other, their ability to make their actual money balances equal their desired balances. The transactions approach makes it natural to emphasize payment practices: the frequency with which people are paid, the irregularity of receipts and payments, and so on. However, such payment practices themselves seem to be largely explained by the willingness of people to hold money. For example, during periods of rapid inflation, when it is costly to hold money, pay periods consistently tend to become more frequent. It is convenient to postpone a fuller consideration of the factors determining velocity until we discuss the post-Keynesian formulation in terms of the demand for money. Here it suffices to point out that Fisher and other earlier quantity theorists explicitly recognized that velocity would be affected by, among other factors, the rate of interest and also the rate of change of prices. They recognized that both high rates of interest and rapidly rising prices would give people an incentive to economize on money balances and so tend to raise velocity and that low rates of interest and falling prices would have the opposite effect. They were never guilty of the crude fallacywith which critics have often charged themof regarding velocity as something of a natural constant. The quantity equation in income form One difficulty with equations (3) and (4) is that the magnitudes designated transactions and the associated general price level proved conceptually ambiguous and difficult to measure with available data. Despite the large amount of empirical work done on these equations, notably by Fisher and Carl Snyder, these ambiguities and deficiencies of data have never been satisfactorily resolved. Should capital transfers, such as purchases and sales of real estate and securities, be included What about gifts Money-changing transactions What is the relevant price and quantity in these transactions As noted before, the data on volume of transactions have been satisfactory only for transactions effected by check. For these, debits to bank accounts (or bank clearings) provide a statistically reliable total, although even then there are problems involved in separating out money-changing transactions. Average deposits give a statistically reliable estimate of M . so that estimates of V can be and are readily calculated for frequent time intervals and for many different geographical areas. However, even for check transactions, there is no satisfactory way to break down the other side of the equation into price and quantity components. With the development of national or social accounting, which has stressed income transactions rather than gross transactions and which has explicitly and satisfactorily dealt with the conceptual and statistical problems of distinguishing between changes in prices and changes in quantities, there has been a tendency to express the quantity equation in terms of income rather than of transactions. Let Y be money national income, P the price index implicit in estimating national income at constant prices, and y national income in constant prices, so that Let M represent, as before, the stock of money, but define V as the average number of times per year that the money stock is used in making income transactions (that is, payments for final productive services) rather than all transactions. We then can write the quantity equation in income form as (6) MV Py. Although the symbols P and V are used both in eqs. (5) and (6) and in eqs. (1) through (4), they stand for different concepts in each group. Equation (6) is both conceptually and empirically more satisfactory than equation (3). Nonetheless, the earlier discussion of the fourfold classification implicit in the quantity equation applies, except for changes that are nearly self-evident, such as the very different relevance for y than for T of the degree of integration or disintegration of industry. Equation (6) is also closer in conception to the Cambridge approach, to which we now turn. The Cambridge cash-balances approach The essential feature of a money economy is that it enables the act of purchase to be separated from the act of sale. An individual who has something to exchange need not seek out the double coincidencesomeone who both wants what he has and offers in exchange what he wants. He need only find someone who wants what he has, sell it to him for general purchasing power, and then find someone else who has what he wants and buy it with general purchasing power. In order for the act of purchase to be separated from the act of sale, there must be something which can serve as a temporary abode of purchasing power in the interim. It is this aspect of money which is emphasized in the cash-balances approach. How much money will people or enterprises want to hold for this purpose As a first approximation we may suppose that the amount one wants to hold bears some relation to ones income, since that determines the volume of purchases and sales in which one is engaged. We then add up the cash balances held by all holders of money in the community and express the total as a fraction of their total income. We can then write where M . P . and y are defined as in equation (6) and k is the ratio of the money stock to income. We can regard k either as a constant so calculated as to make (7) an identity, or as the desired ratio, so that M is the desired amount of money, which need not be equal to the actual amount. In either case, k is clearly equal numerically to the reciprocal of the V of equation (6), the V in one case being interpreted as measured velocity and in the other as desired velocity. Formally the Cambridge equation (7) is simply a transformation of Fishers equation (6). Most writers who have used one of the two approaches regarded them in this way and tended to cover much the same ground. Yet to a far greater extent than is reflected in the writings of the early expositors, the two approaches stress different aspects of money, make different definitions of money seem natural, and lead to emphasis being placed on different variables and analytical techniques. Consider the definition of money. The transactions approach makes it natural to define money in terms of whatever serves as the medium of exchange in discharging obligations. By stressing the function of money as a temporary abode of purchasing power the cash-balances approach makes it seem entirely appropriate to include also such stores of value as demand and time deposits not transferable by check, although it clearly does not require their inclusion. Similarly, the transactions approach leads to stress being placed on such variables as payments practices, the financial and economic arrangements for effecting transactions, and the speed of communication and transportation as it affects the time required to make a paymentessentially, that is, to emphasis on the mechanical aspects of the payments process. The cash-balances approach, on the other hand, leads to stress being placed on variables affecting the usefulness of money as an asset: the costs and returns from holding money instead of other assets, the uncertainty of the future, and so on. Stress on the first set of variables led most early writersboth those using the Fisher equation and those using the Cambridge equationto predict that velocity would increase over time as a result of technological improvements in transportation and communication, which would facilitate the payments process. In fact, velocity has shown no tendency to rise over time. If anything it has rather tended to decline in economically progressive countries along with rises in real income, although this tendency is less pronounced when money is defined narrowly than when it is defined to include some deposits not transferable by check. The tendency for velocity to decline, along with the very size of money balances (equal in 1960 in the United States to about one months income for currency outside banks alone, to nearly five months income for currency plus adjusted demand deposits, and to about seven months income for currency and all deposits at commercial banks) has contributed to a shift of emphasis from the function of money as a medium of exchange to its function as a temporary abode of purchasing power. Finally, with regard to analytical techniques, the cash-balances approach fits in much more readily with the general Marshallian demandsupply apparatus than the transactions approach does. Equation (7) can be regarded as a demand function for money, with P and y on the right-hand side being two of the variables on which demand for money depends, and with k symbolizing all the other variables, so that k is to be regarded not as a numerical constant but as itself a function of still other variables. For completion the analysis requires another equation showing the supply of money as a function of other variables. The price level is then the resultant of the interaction of the demand and supply functions. From this point of view the quantity theory of money as embodied in equation (7) is a theory of the demand for money, not a theory of the price level or of money income. The Keynesian attack The Keynesian incomeexpenditure analysis developed in the General Theory of Employment, Interest and Money (1936) offered an alternative approach to the interpretation of changes in money income that emphasized the relation between money income and investment or autonomous expenditures rather than the relation between money income and the stock of money. The success of the Keynesian revolution in economic thought led to a temporary eclipse of the quantity theory of money and to perhaps an all-time low in the amount of economic research and writing devoted to monetary theory and analysis, narrowly interpreted. It became a widely accepted view that money does not matter, or, at any rate, that it does not matter very much, and that policy and theory alike should concentrate on investment, government fiscal policy, and the relation between consumer expenditures and income. Keynes did not, of course, deny the validity of the quantity equation. What he did was something very different. He argued that under conditions of underemployment equilibrium the V in equation (6) and the k in equation (7) were highly unstable and would, for the most part, passively adapt to whatever changes independently occurred in money income or the stock of money. Hence, under such conditions these equations, although entirely valid, were largely useless for policy or prediction. Moreover, he regarded such conditions as prevailing much, if not most, of the time. Keynes reached this conclusion by giving a highly specific form to equation (7). The quantity of money demanded, he argued, could be treated as if it were divided into two parts, one part, M 1 . held to satisfy the transactions - and precautionary-motives, the other, M 2 . held to satisfy the speculative-motive (1936, p. 199). He regarded M 1 as a roughly constant fraction of income. He regarded the demand for M 2 as arising from uncertainty as to the future course of the rate of interest and the amount demanded as depending on the relation between current rates of interest and the rates of interest expected to prevail in the future. (Keynes, of course, emphasized that there was a whole complex of interest rates. However, for simplicity, he spoke in terms of the rate of interest, usually meaning by that the rate on long-term securities that were fixed in nominal value and that involved minimal risks of defaultfor example, government bonds.) In a given state of expectations, the higher the current rate of interest, the lower would be the (real) amount of money people would want to hold for speculative motives for two reasons: first, the greater would be the cost in terms of current earnings sacrificed by holding money instead of securities, and, second, the more likely it would be that interest rates would fall, and hence bond prices rise, and so the greater would be the cost in terms of capital gains sacrificed by holding money instead of securities. Although expectations are given great prominence in developing the liquidity function expressing the demand for M 2 . they do not enter explicitly into that function. For the most part, Keynes and his followers in practice treated the amount of M 2 demanded simply as a function of the current interest rate, the emphasis on expectations serving only as a reason for their attribution of instability to the liquidity function. Except for somewhat different language, the analysis up to this point differs from that of earlier quantity theorists, such as Fisher, only by its subtle analysis of the role of expectations about future interest rates and its greater emphasis on current interest rates and by restricting more narrowly the variables explicitly considered as affecting the amount of money demanded. Keyness special twist concerned the empirical form of the liquidity-preference function at the low interest rates that he believed would prevail under conditions of underemployment equilibrium. Let the interest rate fall sufficiently low, he argued, and money and bonds would become perfect substitutes for one another liquidity preference, as he put it, would become absolute. The liquidity-preference function, expressing the quantity of M 2 demanded as a function of the rate of interest, would become horizontal at some low but finite rate of interest. Under such circumstances, he held, if the amount of money is increased by whatever means, the holders of money might seek to convert the additional cash balances into bonds. This would, however, tend to lower the rate of return on bonds. Even the slightest lowering would, he argued, lead holders of money to desist from trying to convert it into bonds. The result would simply be that people would be willing to hold the increased quantity of money k would be higher and V lower. Conversely, if the amount of money were decreased, holders of bonds would seek to convert them into money, but this would tend to raise the rate of interest, and even the slightest rise would reconcile them to holding the bonds instead of the money. Or, again, suppose there is an increase in money income for whatever reason. That will require an increase in M 1 . which can come out of M 2 . without any further effects. Conversely, any decline in M 1 . can be added to M 2 . without any further effects. The conclusion is that under circumstances of absolute liquidity preference income can change without a change in M and M can change without a change in income. The holders of money are in metastable equilibrium, like a tumbler on its side on a flat surface they will be satisfied with what-ever the amount of money happens to be. Keynes regarded absolute liquidity preference as a strictly limiting case of which, though it might become practically important in future, he knew of no example. hitherto (1936, p. 207). But, since he regarded interest rates as frequently being not far above the level at which liquidity preference would become absolute, he treated velocity as if in practice its behavior frequently approximated that which would prevail in this limiting case. Keyness disciples went much farther than Keynes himself. They were readier than he was to accept absolute liquidity preference as the actual state of affairs. More important, many argued that when liquidity preference was not absolute, changes in the quantity of money would affect only the interest rate on bonds and that changes in this interest rate in turn would have little further effect. They argued that both consumption expenditures and investment expenditures were nearly completely insensitive to changes in interest rates, so that a change in M would merely be offset by an opposite and compensatory change in V (or a change in the same direction in k ), leaving P and y almost completely unaffected. In essence their argument consists in asserting that only paper securities are substitutes for money balancesthat real assets never are (see Tobin 1961). The issues raised for the quantity theory by the Keynesian analysis are clearly empirical rather than theoretical. Is it a fact that the quantity of money demanded is a function primarily of current income and of the rate of interest on fixed-money-value securities Is it a fact that the amount demanded is highly elastic with respect to the rate of interest on such securities at a low but finite rate of interest Is it a fact that expenditures are highly inelastic with respect to such a rate of interest Or, to put the issue in an equivalent but more readily observable form, is it a fact that velocity is a highly unstable and unpredictable magnitude that generally varies in a direction opposite to that of the quantity of money The post-Keynesian reformulation Experience with monetary policy after World War II very quickly produced a renewed interest in money and a renewed belief that money matters. Under the influence of Keynesian ideas, country after country followed an easy-money policy designed to keep interest rates low in order to stimulate, if only slightly, the investment regarded as needed to offset the shortage of demand that was universally feared. The result was an intensification of the strong inflationary pressure inherited from the war, a pressure that was brought under control only when countries undertook so-called orthodox measures to restrain the growth in the stock of money, as in Italy, beginning in August 1947, in Germany in June 1948, in the United States in March 1951, in Great Britain in November 1951, and in France in January 1960. The effect of experience was reinforced by developments in economic theory, especially by the explicit analysis of the so-called real-balance effect as a channel through which changes in prices and in the quantity of money could affect income, even when investment and consumption were insensitive to changes in interest rates or when absolute liquidity preference prevented changes in interest rates (see Haberler 1937 Tobin 1947 Pigou 1943 1947 Patinkin 1948). Many economists continue to use Keynesian analysis but have revised their empirical presumptions. They grant that liquidity preference is not absolute and that investment does have a sizable elasticity with respect to interest rates. They continue, however, to regard analysis in terms of the quantity equation as less useful and meaningful than analysis in terms of autonomous expenditures and the multiplier, with monetary changes being taken into account as one factor among many that can affect these magnitudes. The postwar period has also seen a return to analysis in terms of the quantity equation accompanied by a reformulation of the quantity theory that has been strongly affected by the Keynesian analysis of liquidity preference (Johnson 1962). The reformulation emphasizes the role of money as an asset and hence treats the demand for money as part of capital or wealth theory, concerned with the composition of the balance sheet or portfolio of assets. From this point of view, it is important to distinguish between ultimate wealth-holders, to whom money is one form in which they choose to hold their wealth, and enterprises, to whom money is a producers good like machinery or inventories. Demand by ultimate wealth-holders For ultimate wealth-holders the demand for money, in real terms, may be expected to be a function of the following variables. (a) Total wealth. This is the analogue of the budget constraint in the usual theory of consumer choice. It is the total that must be divided among various forms of assets. In practice, estimates of total wealth are seldom available. Instead, income may serve as an index of wealth. However, it should be recognized that income as measured by statisticians may be a defective index of wealth because it is subject to erratic year-to-year fluctuations and that a longer term concept, like the concept of permanent income developed in connection with the theory of consumption, may be more useful. (Friedman 1957 1959, p. 7 Meltzer 1963 Brunner amp Meltzer 1963). The emphasis on income as a surrogate for wealth, rather than as a measure of the work to be done by money, is conceptually perhaps the basic difference between the reformulation and the earlier versions of quantity theory. (b) The division of wealth between human and nonhuman forms. The major asset of most wealth-holders is their personal earning capacity, but the conversion of human into nonhuman wealth or the reverse is subject to narrow limits because of institutional constraints. It can be done by using current earnings to purchase nonhuman wealth or by using nonhuman wealth to finance the acquisition of skills but not by purchase or sale and to only a limited extent by borrowing on the collateral of earning power. Hence, the fraction of total wealth that is in the form of nonhuman wealth may be an additional important variable. (c) The expected rates of return on money and other assets. This is the analogue of the prices of a commodity and its substitutes and complements in the usual theory of consumer demand. The nominal rate of return on money may be zero, as it generally is on currency, or negative, as it some-times is on demand deposits subject to net service charges, or positive, as it sometimes is on demand deposits on which interest is paid and generally is on time deposits. The nominal rate of return on other assets consists of two parts first, any currently paid yield or cost, such as interest on bonds, dividends on equities, and storage costs on physical assets, and, second, changes in their nominal prices. The second part will, of course, be especially important under conditions of inflation or deflation. (d) Other variables determining the utility attached to the services rendered by money relative to those rendered by other assetsin Keynesian terminology, determining the value attached to liquidity proper. One such variable may be one al-ready considerednamely, real wealth or income, since the services rendered by money may in principle be regarded by wealth-holders as a necessity, like bread, the consumption of which increases less than in proportion to any increase in income, or as a luxury, like recreation, the consumption of which increases more than in proportion to any increase in income. Another variable, one that is likely to be important empirically, is the degree of economic stability expected to prevail in the future. Wealth-holders are likely to attach considerably more value to liquidity when they expect economic conditions to be unstable than when they expect them to be highly stable. This variable is likely to be difficult to express quantitatively even though the direction of change may be clear from qualitative information. For example, the outbreak of war clearly produces expectations of instability, which is one reason why war is often accompanied by a notable increase in real balancesthat is, a notable decline in velocity. We can symbolize this analysis in terms of the following demand function for money for an individual wealth-holder: where M, P . and y have the same meaning as in equation (7) except that they relate to a single wealth-holder w is the fraction of wealth in non-human form (or, alternatively, the fraction of income derived from property) r m is the expected rate of return on money r b is the expected rate of return on fixed-value securities, including expected changes in their prices r e is the expected rate of return on equities, including expected changes in their prices (1/P)(dP/dt) is the expected rate of change of prices of goods and hence the expected rate of return on real assets and u is a portmanteau symbol standing for whatever variables other than income may affect the utility attached to the services of money. Each of the four rates of return stands, of course, for a set of rates of return, and for some purposes it may be important to classify assets still more finelyfor example, to distinguish currency from deposits, long-term from short-term fixed-value securities, risky from relatively safe equities, and different kinds of physical assets from one another. The usual problems of aggregation arise in passing from equation (8) to a corresponding equation for the economy as a wholein particular, they arise from the possibility that the amount of money demanded may depend on the distribution of such variables as y and w and not merely on their aggregate or average value. If we neglect these distributional effects, (8) can be regarded as applying to the community as a whole, with M and y referring to per capita money holdings and per capita real income, respectively, and w to the fraction of aggregate wealth in nonhuman form. The major problems that arise in practice in applying (8) are the precise definitions of y and w . the estimation of expected rates of return as contrasted with actual rates of return, and the quantitative specification of the variables designated by u. Demand by business enterprises Business enterprises are not subject to a constraint comparable to that imposed by the total wealth of the ultimate wealth-holder. The total amount of capital embodied in productive assets, including money, is a variable that can be determined by the enterprise to maximize returns, since it can acquire additional capital through the capital market. Hence, there is no reason on this ground to include total wealth, or y as a surrogate for total wealth, as a variable in their demand function for money. It may, however, be desirable to include a some-what similar variable defining the scale of the enterprise on different groundsnamely, as an index of the productive value of different quantities of money to the enterprise. This is more nearly in line with the earlier transactions approach emphasizing the work to be done by money. It is by no means clear what the appropriate variable is: total transactions, net value added, net income, total capital in nonmoney form, or net worth. The lack of availability of data has meant that much less empirical work has been done on the business demand for money than on an aggregate demand curve encompassing both ultimate wealth-holders and business enterprises. As a result there are as yet only faint indications about the best variable to use. The division of wealth between human and non-human form has no special relevance to business enterprises, since they are likely to buy the services of both forms on the market. Rates of return on money and on alternative assets are, of course, highly relevant to business enterprises. These rates determine the net cost to them of holding the money balances. However, the particular rates that are relevant may be quite different from those that are relevant for ultimate wealth-holders. For example, rates charged by banks on loans are of minor importance for wealth-holders yet may be extremely important for businesses, since bank loans may be a way in which they can acquire the capital embodied in money balances. The counterpart for business enterprises of the variable u in (8) is the set of variables other than scale affecting the productivity of money balances. At least one of thesenamely, expectations about economic stabilityis likely to be common to business enterprises and ultimate wealth-holders. With these interpretations of the variables, equation (8), with w excluded, can be regarded as symbolizing the business demand for money and, as it stands, symbolizing aggregate demand for money, although with even more serious qualifications about the ambiguities introduced by aggregation. The process of adjustment Emphasis on the role of money as a component of wealth is important because of the variables to which it directs attention. It is important also for its implications about the process of adjustment to a difference between actual and desired stocks of money. Any such discrepancy is a disturbance in a balance sheet. As such it can be corrected in either of two ways: by a rearrangement of assets and liabilities through purchase, sale, borrowing, and lending or by the use of current flows of income and expenditure to add to or subtract from some assets and liabilities. The Keynesian liquidity-preference analysis stressed the first and, in its most rigid form, only one specific rearrangement: that between money and bonds. The earlier quantity theory stressed the second to the almost complete exclusion of the first. The reformulation enforces consideration of both. The process of adjustment is important in particular for its implications about the time that readjustment may be expected to take. Balance-sheet adjustments can in general be expected to take considerable time, especially when they take the form of adjustments through alterations in flows and especially when they concern the money balance, M . whose function is precisely that of serving as a temporary abode of purchasing power, thereby permitting purchases to be separated from sales. It is plausible that any widespread disturbance in money balancesthrough, say, an unanticipated increase or decrease in the quantity of money by the actions of monetary authoritieswill initially be met by an attempted readjustment of assets and liabilities through purchase or sale. But such attempted readjustments will alter the prices of assets and liabilities, leading to the spread of the adjustment from one asset or liability to another. Such changes in prices will also alter the relative prices of capital items and the services they yield and so establish incentives to alter flows of receipts and expenditures. If the monetary change has altered the total nominal value of wealth, not simply its composition, this will introduce an additional reason to change flows. The effect of any monetary disturbance will thus spread in ever-widening ripples, and some of its most important effects may not be manifest for many months after the initial disturbance. Empirical evidence Empirical evidence about the relation between changes in the quantity of money and in prices, although it was sufficiently extensive to produce a widespread belief in the quantity theory, has seldom been systematically collated and organized. Until modern times, money was mostly metalliccopper, brass, silver, gold. The most notable changes in its nominal quantity under such circumstances were produced by sweating and clipping, by governmental edicts changing the nominal values attached to specified physical quantities of the metal, or by great discoveries of new sources of specie. Economic history is replete with examples of the first two and their coincidence with corresponding changes in nominal prices (see Cipolla 1956 Feavearyear 1931). The most important example of the third is the great specie discoveries in the New World in the sixteenth century. The association between this increase in the quantity of money and the price revolution of the sixteenth and seventeenth centuries has been well documented (see Hamilton 1934). The nineteenth and early twentieth centuries offer another striking example, despite the much greater development of deposit money and paper money. The gold discoveries in Australia and the United States in the 1840s were followed by substantial price rises in the 1850s. When the rate of growth of the gold stock slowed down, and especially when country after country shifted from silver to gold (Germany in 1871-1873, the Latin Monetary Union in 1873, the Netherlands in 1875-1876) or returned to gold (the United States in 1879), world prices in terms of gold fell slowly but fairly steadily for about three decades. New gold discoveries in the 1880s and 1890s, powerfully rein-forced by the development of improved methods of mining and refining, particularly the development of commercially feasible methods of using the cyanide process to extract gold from low-grade ore, reversed the trend. The world gold stock started to grow at a much more rapid rate, and no additional important countries shifted to gold, so there was no increase in demand from this source. The price trend also reversed itself. From the mid-1890s to 1914, world prices in terms of gold rose by 25 to 50 per cent, depending on the index used. Evidence from great inflations. The most dramatic evidence about the role of the quantity of money comes from periods of great monetary disturbances, and among these the most striking are the periods of extremely rapid price rise, such as the hyperinflations after World War I in Germany, Austria, and Russia, those after World War II in Hungary and Greece, and the rapid rises, if not hyperinflations, in many South American and some other countries both before and after World War II. These twentieth-century episodes have been rather more systematically studied than earlier ones. The studies demonstrate almost conclusively the critical role of changes in the quantity of money (the most important study is Cagan 1956). These studies also enable us to sketch with considerable accuracy a rather typical profile of an inflation that follows a period of fairly stable prices. The inflation often has its start in a period of war, but it need not. What is important is that something, generally the financing of extraordinary governmental expenditures, produces a much more rapid rate of growth of the money stock. Prices start to rise, but at a slower pace than the money stock, so that for a time the real stock of money increases. The reason for this is twofold. First, it takes time for people to readjust their money balances. Second, initially there is a general expectation that what goes up will come down, that the rise in prices is temporary and will be followed by a decline. Such expectations make money seem to be a desirable form in which to hold assets, and therefore they lead to an increase in desired money balances in real terms. As prices continue to rise, expectations are revised. People come to expect prices to continue to rise. Desired balances decline. People also take more active measures to eliminate the discrepancy between actual and desired balances. The result is that prices start to rise faster than the stock of money, and real balances start to decline (that is, velocity starts to rise). How far this process continues depends on the rate of rise in the stock of money. If it remains fairly stable, real balances settle down to a level that is lower than the initial level but roughly constantfor a constant expected rate of rise in prices there will be a roughly constant level of desired real balances in this case, prices ultimately rise at the same rate as the stock of money. A decline in the rate of rise in the stock of money is followed by a decline in the rate of rise in prices, and this is followed in turn by an increase in actual and desired real balances as people readjust their expectations the converse also holds. The result is that once the process is in full swing, changes in real balances follow with a lag changes in the rate of change of the stock of money. The lag reflects the fact that people apparently base their expectations of future rates of price change on an average of experience over the preceding several years, the period of averaging being shorter the more rapid the inflation. In the extreme cases, those which have degenerated into hyperinflation and a complete breakdown of the medium of exchange, rates of price change have been so high and real balances have been driven down so low as to lead to the widespread introduction of substitute moneys, usually foreign currencies. At that point completely new monetary systems have had to be introduced. A similar phenomenon has occurred when inflation has been effectively suppressed by price controls, so that there is a substantial gap between the prices that would prevail in the absence of controls and the legally permitted prices. This gap prevents money from functioning as an effective medium of exchange and also leads to the introduction of substitute moneys, sometimes rather bizarre ones like the cigarettes and cognac used in post-World War II Germany. Evidence from the United States Recent studies of the monetary history of the United States provide an especially full documentation of monetary relations (see especially Friedman amp Schwartz 1963 a ). Some of the salient findings may be summarized briefly. (a) The real stock of money, expressed in terms of months of income, has risen from about 3 months income at the end of the Civil War in 1865 to over 7 months income by 1960that is, velocity has fallen (money is defined as currency held by the public plus all adjusted deposits in commercial banks, income is defined as net national product). One interpretation of this trend is that the rise in real balances reflects the contemporaneous rise in real income per capita. From the end of World War n to almost 1960, velocity rose rather than fell. It is not yet clear whether this was a temporary interruption or a change of trend. (b) If allowance is made for the trend in velocity, there has been a very close connection between the stock of money per unit of output and prices. This is brought out clearly by Figure 1, which, to eliminate short-period fluctuations, plots the average stock of money per unit of output and average prices in successive reference-cycle phases. (c) In the course of business cycles the stock of money has slowed up its rate of growth well before the date designated by National Bureau of Economic Research reference-cycle dates as the peak of the cycle and has increased its rate of growth well before the trough. In mild contractions these decelerations have generally produced not an absolute decline in the stock of money but only a lower rate of growth. Every severe contraction has been accompanied by an absolute decline in the stock of money, and the severity of the contraction a. A phase is the trough-to-peak or peak-to-trough interval between reference-cycle turning points. (For a discussion of reference cycles, see Moore 1961.) Phase averages are computed by weighting initial and terminal years each at one-half and intervening years at unity. The trend lines are computed regressions based on phase-average values, 18821961. b. The index of implicit prices is based on 1929 100. For the underlying figures, see Friedman and Schwartz (1963a, chart 62). ج. Stock of money per unit of output is the ratio of the money stock to real income, expressed as an index. For the underlying figures, see Friedman and Schwartz (1963a, table A-l, col. 8, and source notes to chart 62). has been in roughly the same order as the size of the decline in the stock of money. Although changes in the rate of growth of the stock of money have to some extent reflected the contemporaneous course of business, on many occasions they have quite clearly been the result of independent forces, such as the deliberate decisions of monetary authorities. The clearest examples are probably the wartime increases and the decreases from 1920 to 1921, 1929 to 1933, and 1937 to 1938. (d) Velocity as usually measured has tended to rise during business expansions and decline during business contractions. One explanation offered is that this pattern reflects the use of measured income in computing velocity rather than a longer term concept, such as permanent income (Friedman 1959). Another explanation offered is that it reflects the effect of interest rates. (e) It is agreed that velocity is related to interest rates, higher interest rates being associated with higher velocity, and conversely, but there is wide disagreement about the magnitude and significance of the relation. One view is that changes in interest rates are either the primary or a major source of all cyclical and secular changes in velocity (Latan 1954 1960 Brunner amp Meltzer 1963). Another view is that changes in interest rates have been a minor factor, much less important than changes in real per capita income for secular changes in velocity and much less important than differences between measured and permanent income for cyclical changes (Friedman 1959 Friedman amp Schwartz 1963 a ). Evidence from underdeveloped countries A few scattered figures for some of the less developed countries may help to indicate the broad range of applicability of the quantity theory of money. Real balances of currency. In less developed countries, currency is often a more meaningful total than currency plus deposits for two reasons. One is that deposits are often used to a very limited extent and by highly selected groups in the population. The other is that governmental monetary intervention is more frequent and more important with respect to deposits, so that an erratic element is introduced into the conditions of supply of deposits. Table 1 gives estimates for a recent year of the stock of currency expressed in number of weeks of personal disposable income for less developed countries and, for comparison, for the United States. These figures are subject to very wide margins of error, particularly because of the unreliability of income estimates for the less developed countries. It is, therefore, all the more Table 1 International comparison of real balances striking that for countries for which methods of economic organization vary so greatly and for which real income per capita must vary over a range of something well in excess of 20 to 1, real balances vary over a range of decidedly less than 2 to 1. And much of that variation is readily explained by different degrees of financial development: deposits are least widely used in India, Greece, and Yugoslavia, most widely used in Israel and the United States, and used to an intermediate extent in Turkey. Clearly, money-holding propensities have a great degree of uniformity under a wide range of circumstances. Changes in quantity of money and in prices. If data like those in Table 1 are of questionable accuracy, year-to-year data are even more dubious for the underdeveloped countries. A recent study that was confined to the Middle East shows a variety of relations. In Egypt and Turkey the data for wholesale prices show the kind of close relationship between money supply and price changes that other experiences would lead one to expect. For the other countries the relation is loose or nonexistent (Penrose 1962). Rises in output may explain some part of the discrepancy. Much more likely explanations are the following: (a) The inclusion of rapidly expanding deposits whose significance is questionable. Currency figures alone show much less of a discrepancy, (b) Major defects in the price indexes. The countries have sought to suppress price increases, often have legal prices that are honored more in the breach than in the observance, and calculate price indexes in ways that understate the actual price rise. It is highly likely that revised and improved figures will remove much of the apparent discrepancy. Stability of velocity and the multiplier As pointed out above, the challenge to the quantity theory offered by Keynes rested entirely on differences in empirical presumptions, which can be summarized in terms of the stability attributed to the velocity of circulation, on the one hand, and the Keynesian multiplier (the ratio of changes in income to changes in autonomous expenditures), on the other. A systematic comparison of the relative stability of velocity and the multiplier has been made for the United States from 1896 to 1958 (Friedman amp Meiselman 1964a 1964b 1965). The results are striking: velocity is consistently more stable than the multiplier, These results have been challenged by other writers (Hester 1964 Ando amp Modigliani 1965 DePrano amp Mayer 1965), showing that this question is still far from settled. Policy implications On a very general level the implications of the quantity theory for economic policy are straightforward and clear. On a more precise and detailed level they are not. Acceptance of the quantity theory clearly means that the stock of money is a key variable in policies directed at the control of the level of prices or of money income. Inflation can be prevented if and only if the stock of money per unit of output can be kept from increasing appreciably. Deflation can be prevented if and only if the stock of money per unit of output can be kept from decreasing appreciably. This implication is by no means a trivial one. Monetary authorities have more frequently than not taken conditions in the credit marketrates of interest, availability of loans, and so onas criteria of policy and have paid little or no attention to the stock of money per se. This emphasis on credit as opposed to monetary policy accounts both for the great depression in the United States from 1929 to 1933, when the Federal Reserve System allowed the stock of money to decline by one-third, and for many of the post-World War n inflations. The quantity theory has no such clear implication, even on this general level, about policies concerned with the growth of real income. Both inflation and deflation have proved consistent with growth, stagnation, or decline. Passing from these general and vague statements to specific prescriptions for policy is difficult. It is tempting to conclude from the close average relation between changes in the stock of money and changes in money income that control over the stock of money can be used as a precision instrument for offsetting other forces making for instability in money income. Unfortunately there are many slips between this cup and this lip. One slip is that a very close relationship on the average is consistent with much variation in the individual instance. A high correlation between changes relative to trend in the stock of money and in money income over many business cyclesinvolving, say, an average increase of 2 per cent in money income for every 1 per cent increase in moneyis entirely consistent with the corresponding ratio varying in individual years or over single cycles from zero or a negative number to, say, 4 or 5. But for policy in a particular cycle, what is important is the relation in that cycle, not the relation on the average. A second slip is the length of time it takes for changes in the stock of money to have their effectthis is one of the reasons for the variability that constitutes the first slip. A change in the stock of money today will have most of its effects some months from now, perhaps on the average as much as 12 to 15 months from now. A policy of using monetary changes to offset other forces making for instability therefore requires an ability to forecast a considerable time in advance what those forces will bean ability that has so far been conspicuous by its absence. Moreover, the time it takes for monetary changes to be effective undoubtedly varies rather considerably. Hence it would also be necessary to forecast how long the lag would be in the specific instance. These two slips mean that monetary changes in-tended to be stabilizing may in fact be destabilizing they may introduce a random and erratic influence into economic affairs. It is a sobering thought that both the stock of money and economic activity displayed greater instability in the first two peacetime decades after the establishment of the Federal Reserve System (1919 to 1939) than in any other pair of decades in the whole of United States history. The blind, quasi-automatic forces that controlled monetary matters in earlier decades produced a higher degree of stability than a system specifically established to promote monetary and economic stability. The greater stability of prices and employment since the end of World War n may be a sign that we have learned how to avoid the mistakes of the interwar decades, but it is much too soon to have any confidence in that comfortable conclusion. Other slips have to do with the indirect effects of methods used to control the stock of money with possible conflicts between the objective of stable prices and such other objectives as stable exchange rates, stable employment at a high level, and low interest rates on government borrowing and with the possible desire to use inflation as a means of imposing a tax on money balances. One negative implication of the quantity theory, implicit in the above, is worth spelling out because of the continued widespread acceptance of the belief that fiscal policy is the key to control of the level of money income. The quantity theory implies that the effect of government deficits or surpluses depends critically on how they are financed. If a deficit is financed by borrowing from the public without an increase in the quantity of money, the direct expansionary effect of the excess of government spending over receipts will be offset to some extent, and possibly to a very great extent, by the indirect contractionary effect of the transfer of funds to the government through borrowing. Furthermore, the deficit will primarily affect income only while it lasts a cessation of the deficit will mean a cessation of its effects. If a deficit is financed by printing money, there will be no offset, and the enlarged stock of money will continue to exert an effect after the deficit is terminated. What matters most is the behavior of the stock of money, and government deficits are expansionary primarily if they serve as the means of increasing the stock of money other means of increasing the stock of money will have closely similar effects. Ando, Albert and Modigliani, Franco 1965 The Relative Stability of Monetary Velocity and the Investment Multiplier. American Economic Review 55:693-728, 786-790. Brunner, Karl and Meltzer, Allan H. 1963 Predicting Velocity: Implications for Theory and Policy. Journal of Finance 18:319-354. Cagan, Phillip 1956 The Monetary Dynamics of Hyperinflation. Pages 25-117 in Milton Friedman (editor), Studies in the Quantity Theory of Money. جامعة. of Chicago Press. Cipolla, Carlo M. 1956 Money, Prices, and Civilization in the Mediterranean World, Fifth to Seventeenth Century. Princeton Univ. صحافة. Deprano, Michael E. and Mayer, Thomas 1965 Tests of the Relative Importance of Autonomous Expenditures and Money. American Economic Review 55: 729-752. Feavearyear, Albert E. (1931)1963 The Pound Sterling: A History of English Money. 2d ed. Oxford: Clarendon. Fisher, Irving (1911) 1920 The Purchasing Power of Money: Its Determination and Relation to Credit, Interest and Crises. New ed. rev. نيويورك: ماكميلان. Friedman, Milton 1957 A Theory of the Consumption Function. National Bureau of Economic Research, General Series, No. 63. Princeton Univ. صحافة. Friedman, Milton 1959 The Demand for Money: Some Theoretical and Empirical Results. Journal of Political Economy 67:327-351. Friedman, Milton and Meiselman, David 1964a The Relative Stability of Monetary Velocity and the Investment Multiplier in the United States, 1897-1958. Pages 165-268 in Stabilization Policies: A Series of Research Studies Prepared for the Commission on Money and Credit. إنغلوود كليفس، ن. ج. برنتيس-هول. Friedman, Milton and Meiselman, David 1964b Reply to Donald Hester. Review of Economics and Statistics 46:369-377. Includes a rejoinder by Donald D. Hester. Friedman, Milton and Meiselman, David 1965 Reply to Ando and Modigliani and to DePrano and Mayer. American Economic Review 55:753-785. Contains a rejoinder by Ando and Modigliani on pages 786-790 and by DePrano and Mayer on pages 791-792. Friedman, Milton and Schwartz, Anna J. 1963a A Monetary History of the United States, 1867-1960. National Bureau of Economic Research, Studies in Business Cycles, No. 12. Princeton Univ. صحافة. Friedman, Milton and Schwartz, Anna J. 1963b Money and Business Cycles. Review of Economics and Statistics 45, no. 1, pt. 2:32-64. Haberler, Gottfried (1937) 1958 Prosperity and Depression: A Theoretical Analysis of Cyclical Movements. الطبعة الرابعة. rev. amp enl. Harvard Economic Studies, Vol. 105. Cambridge, Mass. Harvard Univ. Press London: Allen amp Unwin. Hamilton, Earl J. (1934) 1965 American Treasure and the Price Revolution in Spain, 1501-1650. Harvard Economic Studies, Vol. 43. New York: Octagon. Hester, Donald D. 1964 Keynes and the Quantity Theory: A Comment on the Friedman-Meiselman CMC Paper. Review of Economics and Statistics 46: 364-368. Hume, David 1752 Of Money. Discourse III. Pages 41-59 in David Hume, Political Discourses. Edinburgh: Fleming. Johnson, H. G. 1962 Monetary Theory and Policy. American Economic Review 52:335-384. Keynes, John Maynard 1936 The General Theory of Employment, Interest and Money. London: Macmillan. A paperback edition was published in 1965 by Harcourt. Latan, Henry A. 1954 Cash Balances and the Interest Rate: A Pragmatic Approach. Review of Economics and Statistics 36:456-460. Latan, Henry A. 1960 Income Velocity and Interest Rates: A Pragmatic Approach. Review of Economics and Statistics 42:445-449. Marget, Arthur W. 1938 The Theory of Prices: A Reexamination of the Central Problems of Monetary Theory. المجلد. 1. New York: Prentice-Hall. Marshall, Alfred (1923) 1960 Money, Credit amp Commerce. New York: Kelley. Meltzer, Allan H. 1963 Demand for Money: The Evidence From the Time Series. Journal of Political Economy 71:219-246. Moore, Geoffrey H. (editor) 1961 Business Cycle Indicators. 2 vols. National Bureau of Economic Research, Studies in Business Cycles, No. 10. New York: The Bureau. Volume 1: Contributions to the Analysis of Current Business Conditions. Volume 2: Basic Data on Cyclical Indicators. Newcomb, Simon 1886 Principles of Political Economy. New York: Harper. Patinkin, Don (1948) 1951 Price Flexibility and Full Employment. Pages 252-283 in American Economic Association, Readings in Monetary Theory. Homewood, 111. Irwin. First published in Volume 38 of the American Economic Review. Patinkin, Don (1956) 1965 Money, Interest, and Prices: An Integration of Monetary and Value Theory. 2d ed. New York: Harper. Penrose, Edith T. 1962 Money, Prices, and Economic Expansion in the Middle East, 1952-1960. Rivista internazionale di scienze economiche e commerciali 9:401-427. Pigou, A. C. (1917) 1951 The Value of Money. Pages 162-183 in American Economic Association, Readings in Monetary Theory. Philadelphia: Blakiston. Pigou, A. C. 1943 The Classical Stationary State. Economic Journal 53:343-351. Pigou, A. C. (1947) 1951 Economic Progress in a Stable Environment. Pages 241-251 in American Economic Association, Readings in Monetary Theory. Homewood, 111. Irwin. First published in Volume 14 of Economica New Series. Tobin, James (1947) 1960 Money Wage Rates and Employment. Pages 572-587 in Seymour Harris (editor), The New Economics: Keynes Influence on Theory and Public Policy. London: Dobson. Tobin, James 1961 Money, Capital and Other Stores of Value. American Economic Review 51, no. 2:26-37. Wicksell, Knut (1898) 1936 Interest and Prices (Geldzins und Guterpreise). With an introduction by Bertil Ohlin. London: Macmillan. First published in German. At least since the time of William Petty the velocity of circulation of moneyknown also as the rate of turnover, rate of use, frequency of use, rapidity of circulation, or efficiencyhas been recognized as an important dimension of monetary analysis. A given quantity of money can finance any volume of spending, depending on how frequently, on the average, each unit is used. Moreover, a change in the quantity of money will alter aggregate demand for goods and services only if it is not offset by an opposite change in velocity. An understanding of the factors governing velocity obviously is crucial to the formulation of effective monetary policy. Nevertheless, the velocity concept has been surrounded by controversies throughout its long history. The concept found greatest acceptance during the opening decades of the twentieth centuryparticularly in the United States, through the influence of Irving Fisher (1911). During the 1930s and 1940s it was abandoned by most economists in favor of the new conceptual framework fashioned by J. M. Keynes see LIQUIDITY PREFERENCE . More recently, however, the older concept has been finding its way into monetary literature again. The recent revival of interest in monetary velocity reflects a number of developments. It has be-come evident in the post-World War n period that the major behavior relations proposed in the New Economics are not as dependable as many Keynesian enthusiasts had hoped they would be. Mean-while, velocity analysis has been improved significantly. The concept of velocity has been refined in various ways, and it has been integrated at last into the main body of economic theory. In addition, the statistical resources for study of velocity have been extended greatly. This combination of conceptual breakthroughs and improved statistics has been accompanied by a number of attempts to explain particular velocity movements over time or cross-sectional differences, or to fashion general theories of velocity. The early history of thought relating to velocity has been traced quite fully elsewhere, particularly by Holtrop (1929) and Marget (1938). This article is confined to a review of fundamentals, along with a discussion of more recent developments in velocity theory. Types of velocities The concept of the velocity of circulation of money is clearly and easily defined in general terms. It is the average number of times that each unit of money is spent during any time period. From the equation of exchange, where M is the average stock of money in existence during the period, P the average price of items pur-chased, and T the number of items purchased, it is evident that velocity is the volume of spending per unit of money: However, the definition does not uniquely define velocity, since it fails to specify the meaning of spending and money. Actually, economists have worked with several broad types of velocities, and with countless minor variations thereof. Fishers approach was to include in spending all exchanges of money against goods, services, and securities throughout an economy during a period such as a year and to restrict money to actual means of payment (i. e. privately held demand de-posits and currency). The resulting spending-money ratio can be called aggregate transactions velocity, Vt. For several reasons this velocity concept is not very useful, except for purposes of classroom exposition. In the first place, reliable measures of total spending in any economyeven for a single yeardo not exist and would be extremely difficult to construct. Second, while study of Vt might help us to understand changes in total spending, the general price level (P), and the volume of transactions (T), these concepts have little interest from a welfare or policy point of view. Finally, the use of V, could be defended, apart from its immeasurability, only if money were regarded mainly as a medium of exchange the demand for money would then be sensitive to the volume of spending, and Vt would tend to be fairly stable. Most economists now emphasize the store of wealth function of money, and consequently they see no advantage in relating the stock of money to total spending, as V t does. A second approach, pioneered in the United States by the Federal Reserve System, is to focus on the velocity of demand deposits alone, in which case spending means spending by check. This velocity is known as deposit turnover, V d . Monthly estimates of V d . based on data from a large sample of banks, are available for the United States since 1919 and are published each month in the Federal Reserve Bulletin. Although these estimates are a valued part of our monetary statistics, V d . like V t . does not directly relate to important policy variables such as the level of wholesale prices or the level of national income. And, like V t . it assumes implicitly that the volume of spending is the major determinant of the demand for money. Recognition of the shortcomings of V t and V d has led modern economists, beginning with Pigou (1927), to develop a third index of money use, income velocity, V y . Since V y is merely the ratio of spending for currently produced goods and services (i. e. gross or net national product) to the total money stock, it can be computed quite simply. Annual time series of V y in the United States since 1867 have been constructed by Friedman and Schwartz (1963). Moreover, with the world-wide development of national income statistics, V y estimates can now be made for a large number of other countries. Quarterly V y series are also available for the United States since 1946. In addition to its measurability, V y has the important advantage of relating the money stock to national product, a concept of major interest to economists. Similarly, an index of the prices of final goods and services is much more meaningful than a general price index which includes prices of stocks and many other things that are not vitally important to most policy decisions. While V y was attacked by Keynes (1930, vol. 2, p. 24) as a hybrid conception having no particular significance because some of the money included in its denominator is used to finance purchases other than those of final output, most contemporary economists would reject the criticism as placing too much emphasis on the transaction motive for holding cash. If the volume of spending does not dominate the demand for money, then it does not matter that Vy omits large segments of spending from the analysis. One can obtain a fourth type of velocity by dis-aggregating whatever concept of spending one wishes to use and dividing each sectors spending by its money holdings. The sectors can be drawn according to any number of principles (e. g. by regions, industries, or size classes) and at any level of aggregation hence, the number of conceivable sector velocities is indefinitely large. The idea of sectoral velocity analysis is not new Keynes (1930, vol. 2) advocated such an approach decades ago. Except for the Federal Reserve estimates of Vd, however, which have always been available by groups of cities as well as on an aggregate basis, sector velocities have been ignored for the most part until quite recently. One can compute annual velocities for business firms and households in the United States since the early 1930s and quarterly business velocities since the late 1940s (see Selden 1962). The principal advantage of the sector approach is that it may facilitate analysis of aggregate velocity. Aggregate velocity is a weighted average of sector velocities, the weights being the share of the money stock that each sector holds. Let V ti and M i be transactions velocity and money holdings in the ith sector. Then, Thus, changes in aggregate velocity reflect either changes in the weights of sectors or changes in sector velocities. Velocity changes may emanate from different sectors at different times specific knowledge of the point of origin of a change should contribute to an understanding of its nature. Another concept, the velocity of active money . V a. was popularized by Keynes (1936). In a sense this may be regarded as a special kind of sector velocity, in which total spending, however defined, is divided by active balances only. The relationship of this velocity to aggregate velocity is then where M a is active money. Because of the difficulty in finding an appropriate basis for separating cash into active and idle components, most economists have found this concept, like V t . useful mainly in abstract discussions of monetary theory. Angell (1936), Tobin (1947), Bronfenbrenner and Mayer (1960), and several others have attempted to solve this problem by (1) adopting the Keynesian hypothesis that Va changes only gradually over time and (2) finding some period, such as 1929, in which all cash supposedly was drawn into active circulation. Such calculations are not without interest, but there has been a growing tendency in the 1950s and 1960s for economists to abandon the active-idle dichotomy and to work with total cash instead. The behavior of velocity It is doubtful whether any economist of recognized stature, from Pettys day to the present, has regarded the velocity of money as being rigidly fixed over time. Not until the twentieth century, however, did dependable time series become available, permitting close study of velocity movements. U. S. data reveal the existence of fairly regular seasonal and cyclical velocity variations, as well as persistent secular changes. Seasonally, both V d and V y reach lows early in the year and highs in the closing months, despite the fact that the money stock has a similar seasonal pattern. Cyclically, all velocity measures tend to rise during general business expansions and fall during contractions, with peaks and troughs in velocity coinciding with business cycle peaks and troughs. Cyclical amplitudes, interpreted as deviations from secular trends, are substantially greater in V than in M indeed, the latter usually continues to rise during business contractions, although at a diminished rate. These cyclical changes in velocity can be seen in Figure 1, which reproduces two income velocity series constructed by Friedman and Schwartz, one referring to the velocity of money defined broadly (total adjusted deposits plus currency outside banks) for the period 1869-1960, the other referring to money defined more narrowly (adjusted demand deposits plus currency outside banks) for the period 1915-1960. Cyclical swings in velocity are characteristic of all major sectors of the economy, but they are much more severe for businesses than for households and governmental units. Figure 1 also shows a pronounced and steady downtrend in velocity between the early 1880s and the late 1940sa pattern that was first noted by Warburton (1945 1949). The latters studies, based on admittedly crude data, suggested that V y has been declining at a rate of about 1 1/3 per cent per year since the beginning of the nineteenth century. It is interesting that the more elaborate study of Friedman and Schwartz (1963), covering nine decades ending in 1960, also found a declining trend of slightly over 1 per cent per year. These findings are particularly interesting because they are contrary to the expectation, held by Fisher (1911) and others, that velocity would rise over time. Comparable statistics over extended time periods are lacking for other countries, but fragmentary evidence compiled by Doblin (1951) strongly suggests that secular velocity declines have been a world-wide phenomenon, at least through the 1940s. Since the end of World War n, on the other hand, V d and V u have been rising steadily, except for minor cyclical interruptions. The postwar rise shows up regardless of how spending and money are defined, although the rise is dampened considerably if one follows Friedman and Schwartz and defines M broadly to include commercial bank time deposits as well as demand deposits and currency. Moreover, sectoral studies reveal that the postwar velocity rise has taken place in every sector for which data are available. There has been much controversy over the nature of postwar velocity movementswhether the rise represents a fundamental break with the past or is merely a readjustment from abnormally low levels in the 1930s and during World War n. We shall have more to say on this matter in the next section. In addition to the temporal changes in velocity already mentioned, there are noteworthy cross-sectional differences at any point in time. Perhaps the most familiar of these differences are in V d for New York City, for six other major centers, and for the remaining centers for which information is compiled. In 1963 these figures were 84.8, 44.6, and 29.0, respectively. Among the major sectors covered by Federal Reserve flow-of-funds accounts, corporate business has consistently had higher velocity ratios than noncorporate business, which in turn has higher ratios than the consumer and nonprofit sectors. State and local governments, the farm sector, and nonbank financial intermediaries hold large amounts of cash per dollar of spending, while the federal government operates with relatively small cash balances, though not so small as that of corporate business. Within the business sector there are further interesting differences by industry and by size of firm. Wholesale and retail trade are high velocity sectors, manufacturing is intermediate, and mining and public utilities maintain low velocity ratios. Until recently small firms have tended to have higher velocities than large firms however, during the general velocity rise of the 1950s the velocities of very large firms rose much more rapidly than those of medium-size and small firms. By the end of the decade most of the earlier size differentials had been eliminated. Determinants of velocity Fisher, Marshall, Pigou, and Wicksell Although a number of early thinkers gained important insights into the problem of what determines monetary velocity, it is fair to say that real progress dates from the first decade or two of this century, with the contributions of Fisher (1911), Marshall (1923), Pigou (1917), and Wicksell (1906). These men worked more or less independently (except Pigou, who was Marshalls student and colleague), and they developed rather different modes of analysis. In fact, Marshall and Pigou chose to work with the reciprocal of velocity, which they misleadingly designated k . rather than with velocity itself. Yet the substance of their analyses was remarkably similar. In each case emphasis was placed on more or less mechanical relationships between payments and receipts. This is evident from Fishers formal listing of influences on velocity: 1. Habits of the individual. (a) As to thrift and hoarding. (b ) As to book credit. (c) As to the use of checks. 2. Systems of payments in the community. (a) As to frequency of receipts and disbursements. (b) As to regularity of receipts and disbursements. (c) As to correspondence between times and amounts of receipts and disbursements. 3. General influences. (a) Density of population. (b) Rapidity of transportation. However, implicitly or explicitly all of these economists assigned some role to the rate of interest as a velocity determinant. This comes out most clearly in Pigous work (1917). Perhaps the major stumbling block in these early analyses was the sterile manner in which velocity (or its reciprocal) was related to the demand for money. It was recognized that velocity and the demand for money are intimately related: a rise (fall) in V implies a fall (rise) in the demand for money. ومع ذلك. the neoclassical depiction of the demand for money necessarily took the form of a rectangular hyperbola. M was placed on the horizontal axis the value of money, 1/P, on the vertical. For given levels of V and T, M times 1/P is fixed that is, real cash balances are constant. Variations in T/V would cause a shift in the demand curve, but the new curve would again be a rectangular hyperbola. This pseudo integration of monetary theory with orthodox price theory was a cul-de-sac which impeded progress in velocity theory for a generation. To a large extent the theoretical advances made by Angell (1936 1941), Ellis (1938), and others in the 1920s and 1930s were merely refinements of the technical payments factors isolated earlier by Fisher. The interesting contributions made more recently by Garvy (1959a 1959b) represent a further development in this direction. The Hicksian-Keynesian revolution The transition into modern velocity analysis began with Hickss famous article (1935) and Keyness General Theory (1936). Both of these works proposed that the demand for money be analyzed by setting M against the cost of holding it rather than against its exchange value (1/P), cost being measured by forgone yields on other assets. Unfortunately, the analysis was not carried much beyond this. Furthermore, Keyness discussion, which attracted more attention than Hickss, was built around the arbitrary distinction between active and idle cashvelocity received scant explicit attention. In fact, Keyn. es ridiculed those who make sport with velocity. Many years passed, therefore, before it became generally recognized that the Keynesian discussion of liquidity preference was a disguised analysis of velocity. Insofar as they have been expressly concerned with velocity theory, most Keynesian economists have emphasized the causal role of interest rateslow (high) rates being associated with low (high) velocities. Postwar developments The most significant advances in velocity theory in the postwar period have been, essentially, elaborations of Hickss 1935 contribution. It is now widely accepted that velocity must be analyzed in the framework of the demand for money and that orthodox demand theory can be applied in a fairly straightforward manner to the demand for the services of money. However, the price variablethe cost of holding moneyhas been refined considerably, and attention has been directed increasingly to the impact of such nonprice determinants as income, wealth, money substitutes, tastes, and expectations. The cost of holding money. Despite a number of interesting contributions, economists remain sharply divided over the role of the cost of holding money as a determinant of V. On the level of pure theory, Baumol (1952) and Tobin (1956) demonstrated that there are good reasons for thinking that, contrary to the earlier Keynesian emphasis, the demand for transactions balances is a function of interest rates. More significantly, several empirical studies were made. Cagan (1956) found striking relationships during hyperinflations in a number of countries between real balances (and presumably V) and the rate of change of the price level. On the basis of annual data for the United States for 1907-1958, Latane (1954 1960) concluded that desired holdings of demand deposits plus currency, per dollar of gross national product, were fairly responsive to changes in corporate yields. Meltzer (1963Z), using measures similar to those of Latane, also found a strong interest-rate effect on velocity for 1900-1958. In addition to these aggregate time series studies, Selden (1962) and Meltzer (1963a) made cross-section analyses of velocity and the demand for money among American business firms, and found strong indications of interest-rate effects. On the other hand, Friedman (1959, p. 345), in a study of velocity movements over the period 1870-1954, concluded: A rise in the bond yield tends to reduce the real stock of money demanded for a given real incomethat is, to raise velocityand conversely. Bond yields, however, play nothing like so important and regularly consistent a role in accounting for changes in velocity as does real income. The short-term interest rate was even less highly correlated with velocity than the yield on corporate bonds. In part these differences in emphasis reflect differing concepts, measures, and time periods used in the various statistical tests. Friedman, in contrast with Latane and Meltzer, included commercial bank time deposits in the money stock, and his period of analysis is substantially longer. But the differences also reflect the fact that in Friedmans work the effect of interest rates on V was examined after allowing for the effect of changes in real income per capita. Aside from these extensive empirical investigations, there was increasing concern, in general commentaries on monetary problems during the 1950s, with the interest elasticity of velocity. It was frequently contended that during periods of rising demand for goods and services, banks and other lenders can easily sell securities on the open market and use the proceeds to finance additional spending. Thus, while the monetary authorities can keep M from expanding at such times, they may be unable to prevent inflationary increases in V. However, the validity of this line of argument depends on (1) the terms on which the holders of cash are willing to acquire additional securities and (2) the terms on which prospective spenders are willing to incur additional debt. If the first of these relationships is highly interest-inelastic while the second is not, then lenders have little power to circumvent monetary policy. But the facts concerning these interest elasticities, and hence the interest elasticity of V, need much further study before any definite conclusions can be reached. Other hypotheses. A number of economists, including Warburton (1949), Selden (1956), and Friedman (1959), have studied the role of per capita real, income as a velocity determinant. Friedmans analysis is particularly interesting, in that he relies on income changes to explain not only broad secular movements in V but cyclical movements as well. This is done by use of a permanent income hypothesis. See MONEY. article on QUANTITY THEORY, for additional discussion. As income rises secularly, corresponding to rises in permanent income, the demand for money rises faster than income hence, the ratio of income to the money stock (Vy) falls. On the other hand, during cyclical expansions measured income rises faster than permanent income hence, Vy rises. Friedman was able to explain nearly all velocity movements in the United States between 1870 and 1954 in terms of this permanent income hypothesis. However, the persistent rise in Vy . despite rising real incomes, during the 1950s and early 1960s has created a problem for all of these income approaches. The postwar rise in V has stimulated economists to propose other explanations as well. Some have stressed the greater sense of economic security in the postwar world because of the altered economic role of government. Others have pointed out the generally inflationary environment that characterized the 1940s and much of the 1950s, making cash an unattractive asset to hold. However, other than changes in interest rates and income, the factor that has received most attention as a velocity determinant has been wealth. The role of financial wealth has been singled out by Gurley and Shaw (1960, pp. 177-179), who point out that in its broad historical contours the ratio of income to all financial assets has followed a pattern similar to that of the ratio of income to the money stock. Certainly the growth of money substitutes in the form of claims against nonbank financial intermediaries has been an outstanding feature of the postwar world. A different kind of wealth hypothesis has been put forth by Meltzer (1963Z), who found a close multiple correlation between V, corporate bond yields, and nonhuman tangible wealth over the period 1900-1958. It is clear from these various studies that economists are still some distance from reaching a consensus on the determinants of velocity. Nevertheless, the studies indicate that the velocity concept continues to preoccupy a large number of economists and that important progress has been made. Richard T. Selden Angell, James W. 1936 The Behavior of Money: Exploratory Studies. نيويورك: ماكجرو هيل. Angell, James W. 1941 Investment and Business Cycles. نيويورك: ماكجرو هيل. Baumol, William J. 1952 The Transactions Demand for Cash: An Inventory Theoretic Approach. Quarterly Journal of Economics 66:545-556. Bronfenbrenner, Martin and Mayer, Thomas 1960 Liquidity Functions in the American Economy. Econometrica 28:810-834. Cagan, Phillip 1956 The Monetary Dynamics of Hyperinflation. Pages 25-117 in Milton Friedman (editor), Studies in the Quantity Theory of Money. جامعة. of Chicago Press. Doblin, Ernest 1951 The Ratio of Income to Money Supply: An International Survey. Review of Economics and Statistics 33:201-213. Ellis, Howard S. (1938) 1951 Some Fundamentals in the Theory of Velocity. Pages 89-128 in American Economic Association, Readings in Monetary Theory. Philadelphia: Blakiston. Fisher, Irving (1911) 1920 The Purchasing Power of Money: Its Determination and Relation to Credit, Interest and Crises. New ed. rev. نيويورك: ماكميلان. Friedman, Milton 1959 The Demand for Money: Some Theoretical and Empirical Results. Journal of Political Economy 67:327-351. Friedman, Milton and Schwartz, Anna J. 1963 A Monetary History of the United States: 1867-1960. National Bureau of Economic Research, Studies in Business Cycles, No. 12. Princeton Univ. صحافة. Copyright 1963, by National Bureau of Economic Research. Garvy, George 1959a Deposit Velocity and Its Significance. New York: Federal Reserve Bank of New York. Garvy, George 1959b Structural Aspects of Money Velocity. Quarterly Journal of Economics 73:429-447. Gurley, John G. and Shaw, Edward S. 1960 Money in a Theory of Finance. With a mathematical appendix by Alain C. Enthoven. Washington: Brookings Institution. Hicks, John R. (1935) 1951 A Suggestion for Simplifying the Theory of Money. Pages 13-32 in American Economic Association, Readings in Monetary Theory. Philadelphia: Blakiston. Holtrop, Marius W. 1929 Theories of the Velocity of Circulation of Money in Earlier Economic Literature. Economic History 1:503-524. Keynes, John Maynard (1930) 1958-1960 A Treatise on Money. 2 vols. London: Macmillan. Volume 1: The Pure Theory of Money. المجلد 2: النظرية التطبيقية للمال. Keynes, John Maynard 1936 The General Theory of Employment, Interest and Money. London: Macmillan. A paperback edition was published in 1965 by Harcourt. Latan, Henry A. 1954 Cash Balances and the Interest Rate: A Pragmatic Approach. Review of Economics and Statistics 36:456-460. Latan, Henry A. 1960 Income Velocity and Interest Rates: A Pragmatic Approach. Review of Economics and Statistics 42:445-449. Marget, Arthur W. 1938 The Theory of Prices: A Re-examination of the Central Problems of Monetary Theory. المجلد. 1. New York: Prentice-Hall. Marshall, Alfred (1923)1960 Money, Credit Commerce. New York: Kelley. Meltzer, Allan H. 1963a The Demand for Money: A Cross-section Study of Business Firms. Quarterly Journal of Economics 77:405-422. Meltzer, Allan H. 19632 The Demand for Money: The Evidence From the Time Series. Journal of Political Economy 71:219-246. Pigou, Arthur C. (1917) 1951 The Value of Money. Pages 162-183 in American Economic Association, Readings in Monetary Theory. Philadelphia: Blakiston. Pigou, Arthur C. (1927) 1929 Industrial Fluctuations. 2d ed. London: Macmillan. Selden, Richard T. 1956 Monetary Velocity in the United States. Pages 177-257 in Milton Friedman (editor), Studies in the Quantity Theory of Money. جامعة. of Chicago Press. Selden, Richard T. 1962 The Postwar Rise in the Velocity of Money: A Sectoral Analysis. New York: National Bureau of Economic Research. Tobin, James 1947 Liquidity Preference and Monetary Policy. Review of Economics and Statistics 29:124-131. Tobin, James 1956 The Interest-elasticity of Transactions Demand for Cash. Review of Economics and Statistics 38:241-247. Warburton, Clark 1945 Volume of Money and the Price Level Between Two World Wars. Journal of Political Economy 53:150-163. Warburton, Clark 1949 The Secular Trend in Monetary Velocity. Quarterly Journal of Economics 63:68-91. Wicksell, Knut (1906) 1935 Lectures on Political Economy. Volume 2: Money. لندن: روتليدج. First published in Swedish. In its broadest sense, the term monetary reform refers to any programs or measures intended to change basic features of a nations monetary and banking system. Recently the term has been extended to include proposals for reform of the international financial mechanism through fundamental changes in the present system of operations under the gold exchange standard. But in its most commonly accepted sense, the term relates to the comprehensive stabilization programs adopted in many European countries after World War II with a view to ending monetary disorders or disorganization and re-establishing a well-functioning currency system. Monetary reform programs after World War II typically provided for a reduction in varying degrees of the liquid asset holdings of the public. While differing in many respects from country to country, the reforms always involved a withdrawal of most, and on occasion all, of the outstanding currency and the issue of a new currency. In most countries that adopted such programs, only a small part of the currency holdings was directly converted into a new currency the remainder had to be deposited in banks. All or a large part of the balances in bank accounts were usually blocked, with withdrawals or transfers permitted only up to specified amounts or for specified purposes. In some cases, a substantial proportion of the blocked deposits was eventually wiped out. Several reform programs were associated with fiscal measures of varying sorts, such as capital levies or war-profits taxes. In a few cases the compulsory exchange of some of the blocked deposits into nonmarketable government securities was required. Background and objectives The objectives of the reform programs can be readily understood given the monetary situation prevailing through most of continental Europe during World War II and immediately afterward. In German-occupied Europe, the diversion of goods and services to the occupation armies, and similar exactions, were typically financed by central banks. The same was true of the large export surpluses vis-a-vis Germany. In that country, only a relatively small part of the war effort was financed out of taxes and public subscriptions to government bonds. Following liberation of western Europe and the occupation of Germany and Austria, the Continent was subjected to new financial strains. The allies military expenditures for local supplies and services, and particularly the spending of military currency by their armies, added to monetary disorders during a period of severe disruption of the civilian economy. Yet, despite the vast accumulation of liquid reserves in the hands of the public throughout the Continent and the shrinkage of civilian production, the familiar signs of open inflationrapidly rising prices and wages and skyrocketing currency circulationwere largely confined to France, Italy, and southeastern Europe. The reason was a rigid enforcement of comprehensive price, wage, and allocation controls. Experience in postwar Europe demonstrates that when shelves are bare of all save the most essential supplies and actual economic transactions are at a bare minimum, considerable scope exists for the effective enforcement of such controls. See Prices, article on Price control and rationing. As conditions for a recovery of production were re-established, the effectiveness of controls rapidly diminished. Even then in some parts of Europe they were fairly effective in preventing price inflation. But it became apparent that repressed inflation was exerting a deactivating, if not disintegrating, effect on economic life. Farmers resisted selling in legal markets for money with which there was little to buy and which was likely to depreciate they preferred to barter their produce for consumer goods, including jewelry and other valuables that could serve as hoarding media. Manufacturers were reluctant to use up their remaining stocks of raw materials and semiprocessed goods and preferred to produce not for sale but primarily for the purpose of adding to their inventories. Consumers with large hoards of unwelcome funds at their disposal had no incentive to work at legal wage rates, payment of which added little to their purchasing power in real terms and merely left them with so much more unusable cash holdings. In some countries, notably Germany, money was thus increasingly repudiated as a medium for effecting transactions, and a growing segment of trade moved entirely outside the traditional money economy. Farmers and manufacturers, as well as traders, turned to barter and so-called compensation trading, with sales of goods tied to the delivery of usable products. Elsewhere, several heterogeneous market spheres existed side by side, with gray and black markets taking over an ever larger share of the distribution of current output. Currency in circulation tended to be used only as one of several media of exchange in illegal market deals and as a supplement to the ration ticket in transactions at authorized prices. Especially in Italy and to a lesser extent in France, the control mechanism had largely broken down and open inflation taken hold. In some parts of southeastern Europe, particularly in Hungary and Greece, hyperinflation reigned after the end of the war. Thus in much of postwar Europe a basic task for civilian and military governments was to mop up idle money before it leaked into illegal markets and undermined the control mechanism and to rehabilitate the monetary system so that producers, whether farmers or manufacturers, would again be responsive to incentives to sell for monetary compensation and workers would depend on current income instead of past savings. A longer-term objective was to make the economy more amenable to the traditional controls of monetary policy. In those parts of Europe where inflation was no longer repressed, the task of monetary reform was to re-establish public confidence in money as a store of value. Several other major objectives of monetary reform programs had little to do with the removal of excess liquidity. Among such purposes were a census of wealth, the detection of war profiteering and tax evasion, the cancellation of currency held by the enemy, and the unification of the currency in countries where several currencies had been introduced during the war. In some countries, political objectives also played a major role reforms were directed at depriving certain socioeconomic groupings of most or all of their savings. This was true particularly in the countries of Soviet-occupied Europe, where monetary reforms had the incidental aim of strengthening the planning and allocation system. In sharp contrast, one of the major objectives of the West German currency reform was to revitalize free market forces and to permit the price mechanism to reassert itself as the decisive determinant of economic behavior. Despite the variety of their purposes, monetary reform programs can be classified by a few basic types, although of course few programs fall wholly in any one category. A useful classification, based on the method of reform employed, distinguishes (1) those that reduce the money supply by canceling part of the currency in circulation and part of existing bank deposits (2) those that reduce the money supply by directing part of it into bank deposits, which are then to some extent demonetized or deactivated (3) those that provide for conversion of the outstanding currency into another currency, without any significant blocking of bank deposits and (4) those that virtually replace the entire money circulation with a new unit of account, after the pre-existing unit has depreciated to an infinitesimal fraction of its original value. Further useful lines of distinction may be based on whether or not the programs include fiscal devices, such as capital levies directed at absorbing significant amounts of funds held by owners of real, rather than monetary, assets. (For a somewhat different typology of monetary reforms, see Gurley 1953.) ( 1 ) CancellationGermany. Monetary reform programs of the first typefeaturing a severe reduction of the money supply by simply wiping out large portions of outstanding notes and depositswere enacted in West Germany and several eastern European countries. West Germanys program, enacted in June 1948, is of special interest because it was a resounding success and a turning point in the postwar history of that country. Under a series of decrees by the occupation powers, individuals were issued Deutsche mark (DM) 60 in exchange for an equal amount of old reichsmark (RM) holdings, and DM60 per employee were paid out to businesses for payroll purposes. Business holdings and individual holdings in excess of the converted amount were credited to bank accounts. Only a small fraction of all bank deposits was eventually converted into Deutsche marks, the great bulk being simply wiped out. For individuals the ultimate conversion ratio was in effect one-to-one for original holdings of no more than RM60, between one-to-one and ten-to-one for those holdings between RM60 and RM600, and between ten-to-one and slightly over fifteen-to-one for those holdings over RM600. The effective conversion ratios were more favorable, however, for heads of families and for businesses with more than one employee, becoming less onerous with increasing size of family or firm. All bonds, mortgages, annuities, and other forms of private indebtedness were written down by 90 per cent but prices, wages, rentals, and similar payments had to be converted at the one-to-one ratio. Cash holdings of public bodies were canceled and replaced by Deutsche mark allotments based on average monthly receipts over a given period. The government security holdings of financial institutions were simply canceled. Banks received cash reserves and state equalization claims in amounts equal to their new liabilities plus an allotment of 5 per cent of deposit liabilities, the counterpart of which constituted the capital account of their balance sheets. Similar provisions applied to insurance companies and other financial institutions. West Germanys monetary reform was not accompanied by a capital levy on real asset holdings. However, one of the military government laws providing for the reform called on appropriate German legislative bodies to frame the necessary legislation for the equalization of the war burden. Such legislation was subsequently adopted, along with laws that provided for special conversion rates applicable to deposit holdings of pensioners, refugees, savers, and selected groups of other liquid-asset holders. ( 2 ) BlockingBelgium. Belgium provides an example of the second type of monetary reformsthose that do not cancel any part of the money supply but reduce it by requiring the conversion of liquid holdings into illiquid assets and by imposing severe restraints on the spending of these illiquid assets. The Belgian program, executed in October 1944, was the forerunner of all other monetary reform measures in liberated Europe and probably the inspiration for several of the reform laws adopted elsewhere. For immediate needs, the head of each family could exchange old banknotes for new ones, on a one-to-one basis, up to the amount of 2,000 francs per family member all remaining holdings of bank notes in denominations of 100 francs and higher had to be declared and deposited in blocked bank accounts. Simultaneously, all existing bank deposits were blocked. (A certain portion, representing either the amount held on the day preceding the German invasion or 10 per cent of the amount held immediately before the reform, was excepted for business firms the exempted portion was 1,000 francs per employee.) A short time later, each deposit owner was permitted to withdraw an additional amount of up to 3,000 francs. Each blocked amount, whether arising from note deposits or from pre-existing deposits, was divided into two parts, with 40 per cent temporarily blocked and 60 per cent definitively blocked until a means for its disposition was determined. A series of general releases gradually deblocked the temporarily blocked deposits. At the end of 1945, the 60 per cent portion of previously deposited notes and frozen bank balances was converted into long-term nonnegotiable government bonds carrying an interest rate of 3.5 per cent subsequently, a large part of these bonds was absorbed by a special tax program. ( 3 ) Simple conversionDenmark, France. Turning now to the third type of monetary reformsthose that convert the old currency into a new one, without significant contraction of the money supplyDenmarks currency exchange of July 1945 affords a good illustration. Its major objectives were to reduce currency holdings relative to bank deposits, to prevent the reimport into Denmark of German-held Danish currency, and to facilitate the taxation of war profits. The reform program called for a declaration of wealth, a limited exchange of banknote holdings, the depositing of excess holdings in blocked bank accounts, the blocking of existing bank deposits if in excess of 10,000 kroner or in excess of 150 per cent of deposit holdings on the day of Denmarks invasion by Germany. Within five months, however, the blocked deposits were released, except those of tax evaders. The French currency reform of June 1945 had the same purposes as that of Denmark but did not call for even a temporary blocking of deposits. The reform was accompanied by a progressive capital levy and a capital gains tax, with payment of these taxes spread over several years. In February 1948 the French government withdrew all 5,000 franc notes in circulation, and amounts in excess of 10,000 francs were returned to their owners only after they had discharged certain tax liabilities. But this measure did little more than sterilize part of the money supply for a short period. (4) Drastic conversionGreece, Hungary. The monetary reform programs in Greece and Hungary, which exemplify the fourth type, were put into operation only after protracted periods of currency disturbances and not until inflation had brought about a depreciation of the currencies to an infinitesimal fraction of their prewar value. Special interest attaches to the Hungarian stabilization scheme of 1946, inasmuch as it brought to an end possibly the greatest inflation of history. Its special feature was that it provided for an internally consistent wage and salary structure designed to permit the distribution of scarce supplies at rigidly fixed prices. The program, executed in August 1946, called for the introduction of a new currency unit, the forint, to replace the peng at the rate of 1 forint to 400 octillion peng. (This conversion was preceded by the issue earlier in 1946 of a special currency, the so-called tax peng, a monetary unit of account whose value was related to a price index expressed in terms of the regular peng.) The reform program was based on computations of the gross national product in relation to its prewar level. Proportionate ceilings were set on wages, somewhat less favorable ceilings were established for salaries, and the income to be allocated to farmers and to manufacturers was related to the new money supply. The architects of the reform were insistent on limiting total income to the money value of available goods and services. The program was reinforced by a balanced budget, by the central banks acquisition of dollars circulating in the country, and by the return of the gold removed by the Nazi regime. (For details, see Nogaro 1948.) Capital and increment levies. Many of the monetary reforms, notably those in western Europe, were accompanied by a census of both monetary and real assets. This served the purpose of laying the basis for capital levies and for taxes on capital increments and war profitsfiscal devices that in several countries, including Denmark and Norway, played a central role in the reform program. The motive, apart from the obvious desire to confiscate profits resulting from trading with the enemy and illegal transactions, was to distribute the financial burden of monetary sanitation programs more equitably between holders of monetary and real wealth. By and large, monetary reforms that involve a cancellation of currency and bank deposit holdings affect solely households and businesses that have been unable or unwilling to dispose of their liquid funds. Capital and increment levies, on the other hand, can be laid on property owners in approximate proportion to their share in, or gains of, real wealth as well as monetary assets. With few exceptions, capital levies and similar devices have failed to make a major contribution to achieving the objectives of monetary reforms, although some of them have produced handsome yields over time. Most of the nonmonetary property subject to such levies consists of real estate, buildings, plants, equipment, valuables, and securities. Quite apart from the valuation problems involved, such assets cannot be converted into cash with which to discharge the levy because of the absence of capital markets that could absorb large offerings. In actual practice, the collection of these levies had to be spread over many years, which meant that payment was usually made out of current income. The proceeds were rarely employed for the redemption of government debt and contraction of the money supply. In some countries, notably Belgium and the Netherlands, such levies were in part paid out of blocked accounts or non-negotiable government securities into which blocked accounts had been converted. But even in these two countries, individual tax liabilities often substantially exceeded blocked or nonnegotiable asset holdings. Postwar experience has demonstrated that capital and increment levies, whatever their merit from the viewpoint of social justice and equity, give rise to highly complex assessment and collection problems. For this reason they do not commend themselves as an effective tool for the removal of a monetary overhang. Evaluation Not many additional generalizations about the efficacy of monetary reforms can be made with any assurance there has been too much diversity in both the design and the execution of reform programs. On the whole, the preventive, ameliorative, and bracing effects of the more farreaching measures, at least during the six months or year after their adoption, may be judged as quite impressive. In two or three countries, particularly in Germany, the effects of the reforms in stimulating the economy were truly remarkable in several other countries they succeeded in eliminating black markets, at least temporarily, and in restoring the publics waning faith in the worth of money as a store of value. The resurgence of both open and repressed inflation and the re-emergence of black markets in many countries relatively soon after the completion of reforms should not be laid at their door, except in the few cases where the scope of the measures was so narrow as to cast doubt on the propriety of their designation as reforms. In most cases, the reappearance of monetary maladieswhich in several countries necessitated another sanitation programshould be attributed not to faulty or weak reforms but to subsequent inflationary monetary and fiscal policies and to the fact that in economies suffering from supply scarcities there was a low propensity to save and yet strong official pressures for investment. This is not to deny that several of the reforms were marred by economic disturbances. A number of technical mistakes were made in the preparation and execution of reform programs, including premature announcements of details, too scanty or too liberal releases of deposits, and misjudgments of the publics transaction requirements. But this need not evoke surprise, since the architects of at least the initial programs had few if any precedents to draw on in their decision making. From the viewpoint of equity, most monetary reform programs of the postwar period left much to be desired. The elimination or blocking of large proportions of the money supply without, or with scant, regard to the total wealth of its holders is a very crude device of the sledge-hammer variety, even if cushioned by exemptions for holders of small amounts of currency and bank deposits. But social justice would probably not have been served any better if the money surfeits of postwar Europe had been permitted to be absorbed by rising prices or if the authorities had continued their largely unsuccessful attempts to suppress the manifestations of excessive monetary expansion. On balance, the evidence justifies the conclusion that postwar monetary reforms made a major contribution to economic recovery in Europe. Fred H. Klopstock Currency Reform in Eastern Europe. 1946 Federal Reserve Bank of New York, Monthly Review 28:3943. Currency Reform in the Netherlands. 1946 Federal Reserve Bank of New York, Monthly Review 28:89. De Ridder, Victor A. 1948 The Belgian Monetary Reform: An Appraisal of the Results. Review of Economic Studies 16, no. 1:2540. Dupriez, Lon H. 1947 Monetary Reconstruction in Belgium. New York: Kings Crown Press. Grotius, Fritz 1949 Die europischen Geldreformen nach dem zweiten Weltkrieg. Parts 12. Weltwirtschaftliches Archiv 43:106152, 276325. Gurley, John G. 1953 Excess Liquidity and European Monetary Reforms: 19441952. American Economic Review 43:76100. Klopstock, Fred H. 1946 Monetary Reform in Liberated Europe. American Economic Review 36, no. 4: 578595. Klopstock, Fred H. 1948 a Monetary and Fiscal Policy in Post-liberation Austria. Political Science Quarterly 63, no. 1:99124. Klopstock, Fred H. 1948 b Western Europes Attack on Inflation. Harvard Business Review 26, no. 5:597612. Klopstock, Fred H. 1949 Monetary Reform in Western Germany. Journal of Political Economy 57, no. 4:277292. Nogaro, Bertrand 1948 Hungarys Recent Monetary Crisis and Its Theoretical Meaning. American Economic Review 38, no. 4:526542. Pesek, Boris P. 1958 Monetary Reform and Monetary Equilibrium. Journal of Political Economy 66, no. 5: 375388. Schouten, D. B. J. 1948 Theory and Practice of the Capital Levies in the Netherlands. Oxford University, Institute of Statistics, Bulletin 10, no. 4:117122. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Dictionary of American History COPYRIGHT 2003 The Gale Group Inc. MONEY is any item of value that can be exchanged and accepted as payment for goods, services, or debts. Historically, money had taken many forms, but today the most common types include paper and coin issued by a government and personal or bank checks that constitute a promise to pay and that can readily be converted into currency. Money makes it possible to bypass the practice known as bartering, in which a person trades either goods or services in order to receive other needed goods or services. Although its value may fluctuate on currency markets, money, unlike perishable or exhaustible commodities, also constitutes stored value it can be acquired in the present expressly to be used in the future. The Properties of Money Good money is made of a material that is durable, easily stored, lacking in bulk, and light in weight. Small coins and paper are ideal for these purposes. Money is created by a government and also by private institutions under the direct supervision and control of a government. The Constitution of the United States, for instance, grants Congress the power to coin money and regulate the value thereof. Congress has delegated this authority to the United States Treasury Department, the Federal Reserve System, and through it to privately owned commercial banks. Some money also serves as legal tender. This money by law must be accepted as payment for debts. Currency and coin are considered legal tender because they are created by a government or by government authority and must be accepted in payment for all debts, public and private. Checks, however, are products of commercial banks and, although considered a form of money, they are not legal tender. A merchant or debtor has the legal right to refuse to accept a personal check and, instead, to demand payment in cash. Money also has the ability to affect prices. Because money finances almost all economic activity, the total money supply in circulation at any given time exercises an impact not only on the price of goods and services but also on the price of money itself in the form of interest rates charged for borrowing. If for some reason the quantity of money doubles, it usually follows that prices will increase as well. The Functions of Money Money performs four basic functions. It is a medium of exchange, a measure or standard of value, a store of value, and a standard of deferred payment. As an instrument of exchange, money serves as an asset that enables consumers, whether they are individuals, corporations, or governments, to acquire goods and services. In this way, money facilitates both conversion and growth. If, for example, a farmer grows and then sells soybeans for money, that money can, in turn, be converted into other goods and services. A series of related transactions fuels the growth of the economy. As a standard of value, money acts as what economists call the unit of account. In this capacity, money serves as the common denominator of value because the price of all goods and services is stated in monetary terms, regardless of how the value of money changes or affects the price charged for goods and services. Economists define money that is earned from services provided or labor completed as a store of value because it can be kept for future use as purchasing power rather than immediately expended. Money in a savings or checking account, however, is not the only store of value. Value can also be stored in stocks, bonds, real estate, and even such commodities as wheat or corn. In some cases, money, held in the form of cash, is actually inferior to interest - or dividend-bearing assets as a store of value, since cash by itself yields no return and is subject to its value being eroded by inflation. Money is easily stored, however, because it is not bulky and will not physically deteriorate. As a standard of deferred payment, money in the form of credit permits consumers to acquire goods and services now and to pay for them over a specified period of time. The ability to access credit and defer full payment enhances purchasing power. Coins, currency, and checking accounts are the only items that perform all four of these monetary functions. However, in recent years, some economists have extended their definition of money to include what they called near money or money substitutes. These items have become known simply as M1, M2, and M3 and refer to the different levels of the money supply. The Money Supply The debate over how to define the money supply of the United States centers primarily on the question of whether savings deposits should be included in it. To that end, economists have identified the following levels for the money supply. M1 is the traditional money supply consisting only of coin, currency, and checking accounts. M2 includes M1 plus deposits in commercial savings banks, both passbook accounts and certificates of deposit. However, negotiable certificates worth 100,000 or more are not part of M2. M3 consists of M2 plus savings deposits in savings and loan associations, banks, and credit unions. It also excludes certificates valued at 100,000 or more. Once the money supply has been determined, the next question is who will manage it and to what end. In the United States the Federal Reserve oversees the money supply. It does so by controlling the dollar amount of commercial bank reserves and, through these reserves, the total supply of money available for circulation or borrowing. Among the objectives of the Federal Reserve is the maintenance of price stability and control of the rate of economic growth. The Circulation of Money The speed with which money circulates, or changes hands, is one of the most important factors determining economic health. Economists call this characteristic the velocity of money. If a dollar changes hands five times per year, the velocity of money is five. Overall price levels are determined by the quantity of money multiplied by the velocity of its circulation. Increases in either the quantity or velocity of money will cause prices to rise. Decreases will bring a decline in prices. If the quantity of money in circulation or the velocity at which it circulates is such that one rises while the other falls, there is little or no impact on prices. The Money Market Institutions that bring the borrowers and lenders of short-term funds together on an impersonal basis are known collectively as the money market, a highly competitive arena in which borrowers pay whatever the going interest rate may be to access available funds. Commercial banks are the most important source of short-term funds in the money market. The Federal Reserve, working through member banks, also supplies funds. At times, life insurance companies, pension funds, savings and loan associations, credit unions, and mutual funds also supply funds in the money market. Common borrowers in the money market include businesses looking to finance short-term expansion often in response to economic conditions, as well as the U. S. Treasury Department, which seeks funds to finance the federal deficit. Treasury bills are the major money market instrument used by the Treasury to finance the deficit. These T-bills, as they are known, represent short-term obligations sold at a discount and redeemed at face value upon maturity. The two major instruments that corporations use to satisfy short-term needs are commercial paper and bankers acceptances. They, too, are sold at a discount and then appreciate to face value at maturity. The Monetary System of the United States The monetary system of the United States is made up of two government agencies, the United States Treasury and the Federal Reserve system (the Fed), along with 14,700 privately owned commercial banks. These institutions create the money supply. The U. S. Treasury and the Federal Reserve can strike coins, print paper money, or write checks as outlined in their duties by the United States Congress. Commercial banks can create bank money or checking accounts, but only under the close supervision of the Federal Reserve. Commercial banks must first have adequate reserves before they can make loans and set up new accounts for borrowers. The Federal Reserve controls the dollar amount of these reserves and, in that way, also controls the volume of money in circulation and the costs of borrowing. The Fed implements monetary policy through this control and manipulation of the money supply. By increasing or decreasing the amount of money flowing through the economy, monetary policy can accelerate or slow the rate of economic growth. The object of monetary policy is, thus, to influence the performance of the economy as reflected in such factors as inflation, productivity, and employment. It works by affecting demand across the economy, that is, consumers willingness or ability to pay for goods, services, and credit. There are several methods by which the Fed implements monetary policy. The Fed adjusts bank reserve requirements by buying and selling U. S. government securities. By raising or lowering the reserve requirements, the Board of Governors at the Fed can either encourage or discourage the expansion of credit. The most powerful and efficient entity within the Fed for shaping monetary policy, however, is the Federal Open Market Committee (FOMC). This group, headed by the Chairman of the Federal Reserve Board, who in 2002 was Alan Greenspan, sets interest rates either directly (by changing the discount rate) or through the use of open market operations, the buying and selling of government securities to affect the federal funds rate. The discount rate is the rate the Federal Reserve Bank charges member banks for overnight loans. The Fed actually controls this rate directly, but adjustment tends to have little impact on the activities of banks because funds are available elsewhere. This rate is agreed upon during the FOMC meetings by the directors of the regional banks and the Federal Reserve Board. The federal funds rate is the interest rate at which banks lend excess reserves to each other. Although the Fed cannot directly influence this rate, it effectively controls the rate through buying and selling Treasury bonds to banks. During the course of eight regularly scheduled meetings, the FOMC sets the federal funds rate by determining a plan of open market operations. The group also sets the discount rate, which technically is established by the regional banks and approved by the Board. In the early twenty-first century, the FOMC began announcing its decisions at the end of every meeting. The committee can increase or decrease the discount rate, or leave it unchanged. Increasing the interest rates is called tightening the money supply because this action reduces the amount of money flowing through the economy. Lowering interest rates is called easing because this action increases the money supply. Generally, analysts believe that changes in the discount rate will have little direct effect on the economy because banks can get credit from outside sources with ease. The Fed has the same three options with the federal funds rate. By carefully buying and selling government securities, the Fed can actually change what other banks charge each other for short-term loans. Over time, changes in the money supply will affect the economy as a whole. Most analysts believe that monetary policy takes at least six months to have an impact, and by that time the economic circumstances that the policy was designed to address may have changed. Consequently, the members of the FOMC must predict what the conditions will be when the rate changes begin to exercise an influence over the rate of economic growth. Needless to say, such foresight can be difficult. As a consequence, the Fed also routinely announces it current bias, indicating its present thinking about the future direction the economy will take. Such an announcement usually explains whether the Fed will continue to be concerned about inflation (a tightening bias), about slow growth (a loosening bias), or about neither (a neutral bias). In this way, the Federal Reserve tries to maintain a sustainable level of economic growth, without allowing growth to proceed too rapidly or, on the contrary, without allowing the economy to become sluggish and stagnant. If growth is too fast, inflation will rise, prices will fluctuate upward, and, as wages also rise, unemployment will eventually ensue. These three factors, inflation, rising prices, and unemployment, will short-circuit economic growth. If, by contrast, economic growth is too slow, unemployment will also rise as workers are laid off, leaving growing numbers of consumers without adequate reserve capital to spend their way out of the recession. The Fed, therefore, tries to use monetary policy to maintain a sustainable level of growth for the economy that will keep inflation, prices, and unemployment at manageable levels. The monetary policy of the United States affects the kinds of economic decisions people make, from obtaining a loan to buying a new home to starting a business. Because the U. S. economy is the largest and most prosperous in the world, American monetary policy also has a significant impact on economies around the world. As economic circumstances change at home and around the world, the Fed adjusts its policies to stimulate, sustain, or slow growth. When the Japanese economy began to fall apart in the mid-1990s, for example, it greatly diminished the volume of American exports to Japanese markets and threatened to short-circuit the unprecedented economic boom that the United States was then experiencing. To counteract this development, the Fed cut interest rates to stimulate economic growth or at least to slow decline and to execute what economists call soft landing. Monetary Theory: The Prevailing Models There are two predominant theories about how best to manage the money supply. One of these is associated with supply-side economics. According to the basic principles of supply-side economics, the growth and operation of the economy depends almost entirely on factors affecting supply rather than demand. In terms of monetary theory and policy, supply-side economists embrace such measures as cuts in the interest and tax rates to encourage investment and, at the same time, favor restricting the growth of the money supply to dampen inflation. Supply-side economists generally hold that if people had more cash in hand, they would spend more on goods and services, thereby increasing the aggregate demand for those goods and services and stimulating economic growth. Since there are natural limits to the amount of goods and services people require, they would invest their surplus assets in interest - or dividend-bearing securities, thus making additional capital available for investment and further driving down interest rates. Lower interest rates, coupled with higher aggregate demand, would prompt businesses to borrow to fund expansion, a development that also quickens economic growth. According to monetarist theory, even a small reduction in taxes and interest rates would increase consumer spending, aggregate demand, and capital investment and, as a consequence, ensure economic growth. An alternative to the monetary theory of supply-side economies emerged when economist James Tobin criticized the narrow emphasis on money. Tobin argued that there was a range of financial assets that investors might be willing to hold in their portfolios besides money, including bonds and equities. Their preferences were rationally determined by calculating potential gains against potential risks. Tobin, following John Maynard Keynes, showed how government economic and fiscal policy could impinge on productivity and employment. Keynes had argued that a drop in prices would increase the value of money in real terms. Simply put, without raising wages, falling prices would mean that consumers enjoyed greater purchasing power. An increase in the real value of money would also make available a greater surplus of capital for investment and bring about a consequent decline in interest rates, thus prompting additional investment and stimulating economic growth. In the Keynesian system, the quantity of money determined prices. Interest rates brought savings and investment into balance, while the interest rate itself was set by the quality of money people desired to hold (liquidity preference) in relation to the money supply. Government monetary policy, therefore, ought to aim at keeping money in the hands of consumers and investors, either through increasing wages to counter the effects of inflation or by lowering prices if wages remained stable. Lowering wages to cut business costs, increase profit margins, and stimulate employment, Keynes suggested, was counterproductive. Lower wages only served to decrease income, depress aggregate demand, and retard consumption, all of which would more than offset any benefits that accrued to business from a reduction in wages. During economic hard times, when the private sector could not absorb the costs of labor, the government could take over the role of business by spending money on public works projects to reduce unemployment. The Future of Money By the 1990s, Americans were already becoming immersed in the technology of the digital economy. The idea of digital money, e-cash, is simple. Instead of storing value in paper, e-cash saves it in a series of digits and codes that are as portable and exchangeable as paper, but more secure and even smarter. If e-cash is lost or stolen, its proponents maintain, the card can easily be canceled via computer and its value transferred to another card. E-cash is also more mutable and controllable than paper money. It enables individuals to send funds over the Internet, encoded in an e-mail message rather than sending cash, checks, or wire transfers. Digital currency can also be programmed so that it can be spent only in specific ways money budgeted for food cannot be used to go to the movies or visit the local pub. Finally, e-cash, unlike paper money when withdrawn from an account, continues to earn interest until it is used. This characteristic of e-cash gave rise to another extraordinary aspect of the digital financial revolution: the dissolution of the government monopoly on money. Digital cash has no boundaries. Cardholders are free to acquire e-cash from worldwide lenders willing to pay higher interest rates than banks in the United States. As long as e-cash is easily convertible and widely accepted, customers will find that there is no reason to limit themselves to the currency of a single government. Government-issued money will not cease to exist, but it will have to compete with dozens of other currencies, each tailored to meet specific needs of customers. In the electronic city, the final step in the evolution of money is being taken, explained Howard M. Greenspan, president of Heraclitus Corporation, a management consulting firm. Money is being demonetized. Money is being eliminated. BIBLIOGRAPHY Ando, Albert, and R. Farmer Eguchi and Y. Suzuki, eds. Monetary Policy in Our Times. Cambridge, Mass. MIT Press, 1985. Auerbach, Robert D. Money, Banking, and Financial Markets. New York: Macmillan 1985. Block, Valerie. Atlanta Conference Previews the Future of Money. American Banker 161 (May 14, 1996): 14. Davidson, William. Does Money Exist Forbes 157 (June 3, 1996): 26. E-Cash. The Economist 354 (February 2000): 67. Friedman, Milton, and Anna Schwartz. A Monetary History of the United States, 18671960. Princeton, N. J. Princeton University Press, 1963. Hahn, Frank. Money and Inflation. Cambridge, Mass. MIT Press, 1983. Hutchinson, Harry D. Money, Banking, and the United States Economy. 5th إد. Englewood Cliffs, N. J. Prentice Hall, 1984. Lacker, Jeffrey M. Stored Value Cards: Costly Private Substitutes for Government Currency. Economic Quarterly 82 (Summer 1996): 25. Niehans, Jurg. The Theory of Money. Baltimore: Johns Hopkins University. Press, 1978. Nixon, Brian. E-Cash. Americas Community Banker 5 (June 1996): 3438. Ritter, Lawrence S. and William L. Silber. مال. 5th rev. أد. New York: Basic Books, 1984. Meg Greene Malvasi See also Currency and Coinage Keynesianism Treasury, Department of the . Money can only be defined adequately in the context of a dynamic economy with markets and other financial institutions existing in a society complete with its laws and customs. It is a network or system of public good of considerable complexity. Even if money is privately produced, in the sense that it always depends on network acceptance it is a public good. A quick perusal of any standard textbook immediately specifies the key economic properties of money as: (1) a means of payment (2) a store of value and (3) a numeraire. There are also a host of physical properties that are desirable for an item that serves as money. A partial list includes: (1) transportability (2) durability and (3) cognizability. Left off these two lists is the strategic and informational properties of money. In particular the rules of operation with money distinguish among economic agents. The powers of an individual with respect to the creation and destruction of money are different from those of commercial banks, the central bank, and the treasury. Part of the basic financial control mechanism of any society is the ability of some institutions to control the money supply and influence the money rate of interest. Although it can be shown at a high level of abstraction that with a perfect clearing system all individuals could issue their own currencies, the degree of reputation, trust, and memory required for such a system to work is unreasonable. The financial institutions that have been invented have been designed to provide a viable system for imperfect individuals. The informational aspects of the use of money are critical to a modern complex economy. Money is an information aggregating, disaggregating device. Given prices, any collection of diverse assets can be valued by a single number. Bets of almost any variety on the future deal not only with the changes in uncertain bundles of assets, but with how they will be evaluated in monetary terms. Because people are almost always concerned with a dynamic economy in disequilibrium, money does not provide a constant standard of measure like a carefully measured standard meter. It is a somewhat flexible, crude, and changing store of value. The conditions required to guarantee that a unit of money is of the same value in each period are rarely if ever encountered. A strict specification of all of the conditions that must be specified to guarantee no inflation or deflation is such that it is rarely met in reality. However in a dynamic economy the fact is that money does not maintain a precise value throughout time but permits prices to change in a flexible manner. And, up to a point, this is a desirable property. Given that there are many desirable properties for ideal money, the institutional manifestation of the ideal money is hard to come by as most actual financial instruments called money miss some of the properties. Precisely when in history individuals switched over from direct trade, where commodity A was exchanged for commodity B with no intervening means of payment, is not known. The open market with prices is by no means the only way that society distributes its resources. Among the ways extant today are direct bargaining, bidding, the free market with a price system, the dictates of higher authority, force, fraud and deceit, custom including inheritance and other gifts, and last, but not least, chance. Most of these, like society itself, preceded the development of an organized law-enforcing economy utilizing money. A dynamic economy is a living organism with many ways of achieving some of its goals. Even the most advanced economy will not transfer many of its resources only through markets. Government, alone, at its many levels will account for 20 to 40 percent of the reported monetary income of any society. Gifts will still be made housewives, husbands, handymen, and gardeners will still produce a considerable nonmarket produce bribes and theft are all present to contribute to the nonmarket or only obliquely market parts of the economy. It is not clear whether the development of money preceded, succeeded, or happened simultaneously with the evolution of markets. Their functions are deeply intertwined. The knowledge of the existence of markets makes it easier for individuals to find what they want to buy and where they should go to sell. The existence of money and other financial instruments makes it easier for them to trade. Among the earliest known monies were barley and silver, both of which were used in Mesopotamia over four thousand years ago. A considerable variety of substances have been used as money. They can be usefully divided into storable consumables, such as barley, and durables such as silver. Consumable monies have included barley, rice, cocoa beans, salt, bricks of tea, and cigarettes. Durables have included cowrie shells, wampum, furs, and many metals, including gold, silver, copper, tin and platinum, as well as alloys. Among the earliest portrayals of the use of a metal as money is a painting from the tomb of Mereruka at Saqqara, Egypt. dating around 2300 BCE, showing gold being weighed in a transaction. Before the invention of coinage, payments utilizing metals were made in dust or ingot form. The invention of coinage is attributed to King Andrys of Lydia around 630 BCE. When one views money and financial institutions it is helpful to adopt the viewpoint of an engineer. This dispels much of the mystery often associated with finance. In particular, the transactions technology is seen to be a part of the economic production process. The switch to coinage contrasts with using metal by weight as a means of exchange. Coinage provided standardization of both the weight and quality of the metal and came with the stamp of authority, providing for law and its enforcement. In return for the services rendered by coinage the king took a payment termed a seignorage fee estimated at 3 percent. As is evinced by the association of Croesus with wealth, coinage by the king was a source of revenue. In the subsequent history of coinage permission for the operation of mints has often been granted to private entities, although the government has always played a role. The technology of the production of coins has progressed from slow crude hand striking to vast automation where machines can produce coins at the rate of 45,000 per hour. Coining is still a profitable occupation as is evinced by the profits that the U. S. Mint turns over to the U. S. Treasury. It is also an art form as is illustrated by the design by the renowned sculptor Saint-Gaudens of the double eagle gold coin. Within a few hundred years the use of coinage stretched from England to China. Although historians are not certain, it appears that the Chinese might have invented coinage independently a little later than the West. The mere fact that coinage was quickly and broadly accepted, providing many services that payment in bullion did not provide, does not imply that all coins are accepted even if the issuer is trusted. Mixtures of law, custom, and even aesthetic appeal all come into play. An example is provided by the livre tournois in the thirteenth century, which dominated the use of the livre parisis of Paris. the official coin of the central government. Gold is malleable, ornamental, inert, and easily alloyed. It is estimated that at the end of 2005, the stock of mined gold was approximately 171,000 tons, of which 64 percent had been mined since 1950. World production in 2005 was 2,770 tons. There is a considerable amount of gold in the ocean, but retrieval costs are prohibitive. Various countries have employed gold, silver, and copper as currency simultaneously. A reason for doing so is to provide a fit for different levels of consumption: coppers for a glass of beer or newspaper silver for a pair of shoes and gold to buy a house. The size of a gold coin to buy a beer is too small and as Sweden x2019 s experiment with a copper currency demonstrated, buying a house with copper currency required cartloads of copper. When one country bases its currency on gold and another on silver, any attempt by a country to fix an internal price between gold and silver will cause an influx or outflow of one of the metals. When the English physicist and mathematician Sir Isaac Newton (1642 x2013 1727) was master of the mint, in 1717 he overvalued gold in terms of silver sufficiently that silver went out of circulation as it could be sold for gold and the proceeds repatriated and converted at a profit. From the late seventeenth century onward starting with the formation of the Bank of England in 1694, the world switched more and more to the use of paper currencies. Each currency represents a claim by a national government that it can use its monetary strategic powers to help to control its economy. Monetary consolidations such as the introduction of the euro must be viewed in terms of politics as well as economics. Viewed purely from economics the currency union offers a considerable saving in transactions costs, but from the viewpoint of international politics it marks a considerable change in the strategic powers of individual nation-states. The mixture of law, custom, and logic that produces a viable monetary system is sufficiently subtle that it is extremely difficult to produce formal models that adequately reflect the many functions of money and near monies. The phrase x201C near money x201D refers to an instrument that has many but not all of the properties of a money. For example, confining the observations to the transactions use of money, it should be acceptable in all markets. Nevertheless there may be financial instruments in existence, such as bank checks, which are accepted in almost all markets. For many purposes of analysis it makes sense to lump bank money with the issue of the government. Because other financial instruments and real assets may have some, but not all, of the properties of money there is a considerable problem in defining a single simple measure of the amount of money there exists in any country. For example the property of being a store of value is present for assets such as land or houses as well as gold. If a single number is required to measure the amount of money, the United States produces three different measures with many components. The three measures are aggregations called M1, M2, and M3. M1 is the sum of paper currency and coin that is held outside banks, traveler x2019 s checks, and checking accounts (but not demand deposits), minus the amount of money in the Federal Reserve float. M2 is the sum of M1, plus savings deposits, including money market accounts from which no checks can be written, time deposits less than 100,000, and retirement accounts. M3 is the sum of M2 plus the large time deposits, Eurodollar deposits, dollars held at foreign offices of U. S. banks, and institutional money market funds. In the twenty-first century with the proliferation of computers and cheap communication together with data banks on credit evaluation, many new forms of payment, credit cards, debit cards, and e-money are coming into being. Groups of individuals who trade frequently and are well known to each other can set up their own clearing and credit systems without using banks. One of the mysteries of fiat money and national income accounting is what backs fiat or paper money. Is it custom, the power of government, trust in the government, gold reserves and other government assets, the presence of taxation, expectations, the negative incentives of default punishment, or factors associated with insurance and inheritance A tentative answer is all of the above, in part. The mix may vary through time and place. The ideal money is a symbol that serves as a substitute for trust. It is an abstract x201C trust pill. x201D This ideal currency does not exist, but the currency of a stable noninflationary economy is hopefully an approximation to this trust pill. Fiat money is an asset like gold but it is an artificial or societally created virtual gold. Treating it as an asset has some paradoxical features. What does one receive on surrendering a one dollar bill to the Federal Reserve One gets another new bill. Currently the average life of a dollar bill is estimated at twenty-two months hence this activity is not merely symbolic but relevant. In their work Money in a Theory of Finance (1960), Jack Gurley and Edward Shaw made a distinction between x201C outside money x201D and inside money that stresses the role of government. Outside money is government fiat money against which a government debt exists. Inside money is fiat money held as an unencumbered asset by a private individual. A way in which the government can adjust the overall supply of fiat money held by private individuals is by selling to or buying from them, public debt. The basic difference between fiat money and credit is that money is a virtual commodity. It is a fictitious gold. It is the only financial instrument for which there is no operationally meaningful offsetting instrument on the other side of the balance sheet. The government maintains a fiction that it owes something to the individual who owns a dollar bill, but apart from obtaining a newer piece of paper from the bank it has no operational meaning. From the mid-eighteenth century until today there has been considerable interest in what has become known as the quantity theory of money. In his essay x201C Of Interest x201D (1752) the Scottish philosopher and historian David Hume (1711 x2013 1776) noted, x201C All augmentation has no other effect than to heighten the price of labor and commodities and even this variation is little more than that of a name. Money having chiefly a fictitious value, the greater or less plenty of it is of no consequence if we consider a nation within itself x201D (1752 1985, pp. 296 x2013 297). In the modern terminology of Don Patinkin, Hume x2019 s concept of money shows a classical dichotomy illustrating that the amount of money does not matter. More money merely raises the level of prices. The classical dichotomy means that the structure of real economy in equilibrium is independent of the amount of money in the system. The latter only fixes the price level. The conditions for the classical dichotomy between money and other goods are that there are absolutely no frictions in the speed of adjustment of the economy to the introduction of more money. This is counterfactual as can be seen by trying to build a playable game of the system. In the 2000s there are at least two major schools of thought, one deriving from Hume, the monetarists, exemplified by Milton Friedman and the other modern followers, and modifiers of the work of the English economist John Maynard Keynes. Both schools have skilled analysts. The key distinctions lie in basic assumptions and different interpretations of unclear evidence. Those following variants of the quantity theory appear to stress long-run equilibrium conditions playing down the influence of short-term adjustments and coordination problems as well as ignoring nonsymmetries in wealth, expertise, and decision-making abilities. The neo-Keynesians are more concerned with the influence of monetary policy on short-run adjustments and on problems in economic coordination. They tend to be more concerned with non-symmetries among industry, the workforce, consumers, and government. More than the monetarists they appreciate the constant disequilibrium in the economic system. A strategic and more biological view of money and financial institutions is that they represent the neural network and control system over the economic body of society. The government and the private financial establishment form a considerable segment of the economy. They are large enough to have considerable influence on the overall supply of money and credit. This alone places an upper bound on prices. The presence of default penalties and bankruptcy laws places a lower bound on prices. If there is enough deflation it pays a debtor to default unless the bankruptcy laws are changed at the same speed as the money supply. The laws of contract and the bankruptcy laws reflect a society x2019 s attitude toward risk. In a highly innovative society in constant disequilibrium, the laws of default and bankruptcy control the innovation rate or the speed of mutation of that society. Furthermore the ability of the government and banks to create money and the other parts of the financial system to direct where credit goes gives government and the financial system considerable control in directing the disequilibrium dynamics of a modern economy. In this structure money matters considerably. In a static equilibrium of a society without innovation the classic dichotomy appears and the importance of money and financial institutions is diminished. The financial system and money provide the interfacing mechanisms between the economy and the polity. Human society, like an individual x2019 s body, is not an undifferentiated mass of independent individuals or cells. There is a complex organization, which in both instances requires a flow of information, control instructions, and nourishment to differentiated organisms that require coordination. The financial system provides for the flow of information and control and the economy provides the various physical forms of nourishment needed by the society. SEE ALSO Balance of Payments Currency Divisia Monetary Index Exchange Rates Monetary Theory Money, Endogenous Money, Exogenous Policy, Monetary Quantity Theory of Money Trade Bagehot, Walter. 1873 1962. Lombard Street . Homewood, IL: Irwin. Fisher, Irving. 1930 1977. The Theory of Interest . Philadelphia: Porcupine Press. Fisher, Irving. 1931. The Purchasing Power of Money . 2nd ed. نيويورك: ماكميلان. Gurley, John G. and Edward Shaw. 1960. Money in a Theory of Finance . Washington, DC: Brookings Institution. Friedman, Milton. 1969. The Optimum Quantity of Money and Other Essays . Chicago: Aldine. Hume, David. 1752 1985. Of Interest. In Essays: Moral, Political and Literary . أد. E. F. Miller, 296 x2013 297. Indianapolis, IN: Liberty Classics. Jevons, William S. 1875. Money and the Mechanism of Exchange . London: MacMillan. Keynes, John M. 1936 1957. The General Theory of Employment, Interest and Money . London: Macmillan. Lejonhufvud, Axel. 1968. On Keynesian Economics and the Economics of Keynes . New York: Oxford University Press. Simmel, Georg. 1907 1978. The Philosophy of Money . لندن: روتليدج وكيجان بول. Schumpeter, Joseph A. 1934. The Theory of Economic Development . Cambridge: MA: Harvard University Press. Schumpeter, Joseph A. ed. 1954. History of Economic Analysis . London: Allen and Unwin. Shubik, Martin. 1999. The Theory of Money and Financial Institutions . 2 vols. كامبريدج، ما: ميت الصحافة. Tobin, J. 1961. Money Capital and Other Stores of Value. American Economic Review 51: 26 x2013 37. Von Mises, Ludwig. 1935. The Theory of Money and Credit . نيويورك: هاركورت هدفين. Wicksell, Knut. 1935 1962. Lectures on Political Economy . المجلد. 2. London: Routledge and Kegan Paul. money, term that actually refers to two concepts: the abstract unit of account in terms of which the value of goods, services, and obligations can be compared and anything that is widely established as a means of payment. Frequently the standard of value also serves as a medium of exchange, but that is not always the case. Many ancient communities, for instance, took cattle as their standard of value but used more manageable objects as means of payment. Exchange involving the use of money is a great improvement over barter, since it permits elaborate specialization and provides generalized purchasing power that the participants in the exchange may use in the future. The growth of monetary institutions has largely paralleled that of trade and industry today almost all economic activity is concerned with the making and spending of money incomes. From the earliest times precious metals have had wide monetary use, owing to convenience of handling, durability, divisibility, and the high intrinsic value commonly attached to them. Whether an article is to be regarded as money does not, however, depend on its value as a commodity, except where intrinsic worth is necessary to make it generally acceptable in exchange the relation between the face value of an object used as money and its commodity value has actually become increasingly remote (see coin ). Paper currency first appeared about 300 years ago it was usually backed by some standard commodity of intrinsic value into which it could be freely converted on demand, but even during the early development of currency, issuance of inconvertible paper money, also called fiat money. was not infrequent (see, for example, Law, John ). The worlds first durable plastic currency was introduced by Australia in a special issue in 1988 and in a regular issue in 1992. Plastic bills are more resistant to counterfeiting than paper, and a number of countries now issue plastic currency. The importance of money has been variously interpreted. While the advocates of mercantilism tended to identify money with wealth, the classical economists, e. g. John Stuart Mill. usually considered money as a veil obscuring real economic phenomena. Since the mid-20th cent. a group known as the monetarists has given increasing attention to the role of money in determining national income and economic fluctuations. The Monetary System of the United States The monetary system of the United States was based on bimetallism during most of the 19th cent. A full gold standard was in effect from 1900 to 1933, providing for free coinage of gold and full convertibility of currency into gold coin the volume of money in circulation was closely related to the gold supply. The passage of the Gold Reserve Act of 1934, which put the country on a modified gold standard, presaged the end of the gold-based monetary system in domestic exchange. Under this system, the dollar was legally defined as having a certain, fixed value in gold. While gold was still thought to be important for maintenance of confidence in the dollar, its connection with the actual use of money was at best vague. The 1934 act stipulated that gold could not be used as a medium of domestic exchange. More recently, a number of measures have de-emphasized the dollars dependence on gold since the early 1970s, practically all U. S. currency, paper or coin, is essentially fiat money. Under the Legal Tender Act of 1933, all American coin and paper money in circulation is now legal tender, i. e. under the law it must be accepted at face value by creditors in payment of any debt, public or private. Most of the currency circulating in the United States consists of Federal Reserve notes, which are issued in denominations ranging from 1 to 100 by the Federal Reserve System, are guaranteed by the U. S. government, and are secured by government securities and eligible commercial paper. A small fraction of the currency supply is made up of the various types of coin, none of which has a commodity value equal to its face value. Finally, an even smaller part of the circulating currency is composed of bills that are no longer issued, such as silver certificates, which were redeemable in silver until 1967, and bills in denominations between 500 and 100,000, which have not been issued since 1969. Today, currency and coin are less widely used as a means of payment than checks, debit cards. and credit cards demand deposits (checking accounts) are, therefore, generally considered part of the money supply. Starting in 1996, the Federal Reserve undertook the redesign of all paper bills, chiefly to deter a new wave of counterfeiting that uses computer technology further changes, including colors in addition to green, were introduced in 2003. (See banking on the regulation of the supply, availability, and cost of money, see Federal Reserve System and interest .) Certain assets, sometimes called near-monies, are similar to money in that they can usually be readily converted into cash without loss they include, for example, time deposits and very short-term obligations of the federal government. Funds that are frequently transferred from country to country for maximum advantage are called hot monies. The technical definition of the nations aggregate money supply includes three measures of money: M-1, the sum of all currency and demand deposits held by consumers and businesses M-2 is M-1 plus all savings accounts, time deposits (e. g. certificates of deposit), and smaller money-market accounts M-3 is M-2 plus large-denomination time deposits held by corporations and financial institutions and money-market funds held by financial institutions. Electronic payment systems, already in place for use by credit-card processors, were adapted in the 1990s for use in electronic commerce (e-commerce ) on the Internet. Such digital cash payments allow customers to pay for on-line orders using secure accounts established with specialized financial institutions related technology is used for on-line payment of bills. See J. M. Keynes, General Theory of Employment, Interest, and Money (1936) J. Niehans, The Theory of Money (1980) J. Wheatley, An Essay on the Theory of Money and Principles of Commerce (1983) A. Schwartz, Money in Historical Perspective (1987) J. Hicks, A Market Theory of Money (1989) C. Rogers, Money, Interest and Capital (1989) J. Goodwin, Greenback (2002) N. Ferguson, The Ascent of Money (2008). Encyclopedia of Business and Finance, 2nd ed. COPYRIGHT 2007 Thomson Gale In the modern world we take money for granted. However, pause for a moment and imagine what life would be like without money. Suppose that you want to consume a particular good or service, such as a pair of shoes. If money did not exist, you would need to barter with the cobbler for the pair of shoes that you want. Barter is the process of directly exchanging one good or service for another. In order to purchase the pair of shoes, you would need to have something to trade for the shoes. If you specialized in growing peaches, you would need to bring enough bushels of peaches to the cobblers shop to purchase the pair of shoes. If the cobbler wanted your peaches and you wanted his shoes, then a double coincidence of wants would exist and trade could take place. But what if the cobbler did not want your peaches In that case you would have to find out what he did want, for example, beef. Then you would have to trade your peaches for beef and the beef for shoes. But what if the person selling beef had no desire for peaches, but instead wants a computer Then you would have to trade your peaches for a computer x2014 and it would take a lot of peaches to buy a computer. Then you would have to trade your computer for beef and the beef for shoes. But what if x2026. At some point it would become easier to make the shoes yourself or to just do without. THE EVOLUTION OF MONEY Money evolved as a way of avoiding the complexities and difficulties of barter. Money is any asset that is recognized by an economic community as having value. Historically, such assets have included, among other things, shells, stone disks (which can be somewhat difficult to carry around), gold, and bank notes. The modern monetary system has its roots in the gold of medieval Europe. In the Middle Ages. gold and gold coins were the common currency. However, the wealthy found that carrying large quantities of gold around was difficult and made them the target of thieves. To avoid carrying gold coins, people began depositing them for safekeeping with goldsmiths, who often had heavily guarded vaults in which to store their valuable inventories of gold. The goldsmiths charged a fee for their services and issued receipts, or gold notes, in the amount of the deposits. Exchanging these receipts was much simpler and safer than carrying around gold coins. In addition, the depositors could retrieve their gold on demand. Goldsmiths during this time became aware that few people actually wanted their gold coins back when the gold notes were so easy to use for exchange. They therefore began lending some of the gold on deposit to borrowers who paid a fee, called interest. These goldsmiths were the precursors to our modern fractional reserve banking system. FUNCTIONS OF MONEY Regardless of what asset is recognized by an economic community as money, in general it serves three functions: Money is a medium of exchange Money is a measure of value Money is a store of value Money is a medium of exchange Used as a medium of exchange, money means that parties to a transaction no longer need to barter one good for another. Because money is accepted as a medium of exchange, you can sell your peaches for money and purchase the desired shoes with the proceeds of the sale. You no longer need to trade peaches x2014 a lot of them x2014 for a computer and then the computer for beef and then the beef for the shoes. As a medium of exchange, money tends to encourage specialization and division of labor, promoting economic efficiency. Money is a measure of value As a measure of value, money makes transactions significantly simpler. Instead of markets determining the price of peaches relative to computers and to beef and to shoes, as well as the price of computers relative to beef and to shoes, as well as the price of beef relative to shoes (i. e. a total of six prices for only four goods), the markets only need to determine the price of each of the four goods in terms of money. If we were to add a fifth good to our simple economy, then we would add four more prices to the number of good-for-good prices that the markets must determine. As the number of goods in our economy grew, the number of good-for-good prices would grow rapidly. In an economy with ten goods, there would be forty-five good-for-good prices but only ten money prices. In an economy with twenty goods there would be one hundred and ninety good-for-good prices but only twenty money prices. Imagine all of the good-for-good prices in a more realistic economy with thousands of goods and services available. Using money as a measure of value reduces the number of prices determined in markets and vastly reduces the cost of collecting price information for market participants. Instead of focusing on such information, market participants can focus their effort on producing the good or service in which they specialize. Money as a store of value Money can also serve as a store of value, since it can quickly be exchanged for desired goods and services. Many assets can be used as a store of value, including stocks, bonds, and real estate. However, there are transaction costs associated with converting these assets into money in order to purchase a desired good or service. These transaction costs could include monetary fees as well as time delays involved in the liquidation process. In contrast, money is a poor store of value during periods of inflation, while the value of real estate tends to appreciate during such periods. Thus, the benefits of holding money must by balanced against the risks of holding money. Money simplifies the exchange of goods and services and facilitates specialization and division of labor. It does this by serving as a medium of exchange, as a measure of value, and as a store of value. see also Currency Exchange Money Supply In economics and finance, currency refers to paper money and coins that represent the monetary base of a country. Currency is a form of money, which is used primarily as a medium of exchange. In international economics, the word currency is used mostly as a reference to foreign currency, the monetary unit of a foreign country. Currency developed because of the need for a unit of exchange that would be portable, nonperishable, and easily divisible. It appeared with a shift from commodity money to coins made out of precious metals. Currency further developed into fiat money . money that carries no intrinsic value, such as coins made out of nonprecious metals and banknotes, the paper money that is used in most countries today. In the form of fiat money, currency x2019 s value is based on the universal acceptance of the currency for payments. For a given level of a country x2019 s output, the more currency that is in circulation, the higher would be the level of prices in the country. Many countries have their own national currency, such as the dollar in the United States. There are some countries, however, that do not have their own currency. Economists separate the latter into two groups: those that belong to a common currency area, and those that simply use foreign currency for transactions in their countries. An example of a common currency area is the European Monetary Union. The members of the European Monetary Union all use the same currency, the euro. Countries and regions that use foreign currency are Panama. الاكوادور. and El Salvador. which use the U. S. dollar Kosovo and Montenegro. which use the euro and small countries and island nations that use the currencies of their closest neighbors or the country that had formerly governed them as a protectorate. Such economies are referred to as dollarized . even if the currency they use is not called x201C the dollar. x201D The amount of currency in circulation is determined by the monetary authority of the country and represents one of the instruments of the country x2019 s monetary policy. In the United States, the monetary authority is the Federal Reserve System. In the European Monetary Union, the European Central Bank, which includes representatives from all the member countries, determines the amount of currency in circulation. Dollarized countries cannot influence the amount of currency in circulation and therefore do not have an independent monetary policy. Should each country have its own currency This question, first analyzed in modern economics literature by Robert Mundell (1961), has been the subject of heated debate ever since. Mundell x2019 s theory suggests that two countries should have a common currency if monetary efficiency gain outweighs economic stability loss from having a common currency. This will more likely be the case if the two countries are closely integrated through trade, capital, and labor mobility. Many economists believe that the European Monetary Union is not an optimum currency area because the economies that represent it are too diverse and are not sufficiently integrated. On the other hand, most economists agree that the United States is an optimum currency area, and that it would be costly for each state to use its own currency. Some believe that the world can benefit from the introduction of the single global currency, but most economists think it is not a good idea because independent monetary policy is important to stabilize both real goods and asset markets in conjunction with fiscal policy. SEE ALSO Euro, The Money Quantity Theory of Money Mundell, Robert. 1961. A Theory of Optimum Currency Area. The American Economic Review 51 (4): 657 x2013 665. The Oxford Dictionary of Phrase and Fable xA9 The Oxford Dictionary of Phrase and Fable 2006, originally published by Oxford University Press 2006. money money comes from Latin moneta x2018mintx2019, originally a title of a goddess (in classical times regarded as identical with Juno), in whose temple in Rome money was minted. A money box (or moneybag ) is the emblem of St Matthew and St Nicholas of Myra . money cant buy happiness a recurrent theme in invectives against materialism down the ages, but this formulation of it appears to be comparatively recent. (The saying, in the form gold cannot buy happiness . is first recorded in the mid 19th century.) money changer an archaic term for a person whose business was the exchanging of one currency for another often with biblical allusion, as to Matthew 21:12. money for jam money or reward earned for little or no effort the allusion is said to be to the prevalence of jam in Army rations in the early 20th century. Money for old rope is an alternative, giving another type of a virtually worthless item. money has no smell proverbial saying, which in this form is recorded from the early 20th century. A translation of Latin Pecunia non olet . it derives from a comment made by the Emperor Vespasian (ad 9x201379), when his son Titus objected to a tax levied on public lavatories. Vespasian is said to have held a coin to Tituss nose, and on being told that it did not smell, to have replied, x2018 Atque e lotio est Yes, thats made from urinex2019. money is power proverbial saying, mid 18th century. (Compare knowledge is power .) money is the root of all evil proverbial saying, mid 15th century with biblical allusion to 1 Timothy 6:10, x2018The love of money is the root of all evil. x2019 money isnt everything proverbial saying, early 20th century, often said in consolation or resignation. money makes a man possession of wealth confers status proverbial saying, early 16th century, translating the Latin tag, x2018 divitiae virum faciunt wealth makes the manx2019. money makes money proverbial saying, late 16th century, implying that those who are already wealthy are likely to become more so. money makes the mare to go proverbial saying, late 15th century, referring to money as a source of power. money talks money has influence proverbial saying, mid 17th century. put ones money where ones mouth is take action to support ones statements or opinions. see the colour of someones money receive some proof that someone has enough money to pay for something. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. - Ologies and - Isms COPYRIGHT 1986 Gale 276. Money See also 131. DUES and PAYMENT 137. ECONOMICS 160. FINANCE 325. POVERTY 398. TRADE . agiotage the business of buying and selling the curreneies of various countries by taking advantage of differences in rates of exchange. x2014 agio . ن. anatocism the act of lending with interest. aphnology Rare. the science of wealth. arbitrage the business of buying and selling securities, curreneies, and commodities on an international scale so as to take advantage of differences in rates of exchange and prices. x2014 arbitrager, arbitrageur . ن. bimetallism the use of two metals jointly as a monetary Standard with fixed values in relation to one another. x2014 bimetallist . ن. x2014 bimetallistic . adj. bullionism the doctrine that paper money should at all times be convertible into bullion. x2014 bullionist . ن. cambism, cambistry the theory and practice of money exchange as an item of commerce, especially in its international features. x2014 cambist . ن. chrematist a person whose chief goal in life is the gaining of wealth. x2014 chrematistic . adj. chrematistics 1. the study of wealth. 2. any theory of wealth as measured in money. x2014 chrematistic . adj. chrematomania a mania for money. chrematophobia an abnormal fear or dislike of money. cresomania a mania for great wealth. gombeenism Irish. the lending of money at usurious interest. x2014 gombeen, gombeenman . ن. mammonism the greedy pursuit of riches. metallism a doctrine advocating the use of metal money instead of paper. x2014 metallist, metalist . ن. monetarism an economie theory maintaining that stability and growth in the economy are dependent on a steady growth rate in the supply of money. x2014 monetarist . ن. adj. moneyocracy government or domination of society by the rich. monometallism 1. the use of only one metal, usually gold or silver, as a monetary Standard. 2. the use of only one metal for coinage. x2014 monometallist . ن. nabobism the lifestyle of a nabob, i. e. of one possessing considerable wealth. plutolatry an excessive devotion to wealth. plutology Economics. the scientific study or theory of wealth. plutomania 1. an abnormal craving for wealth. 2. a mania characterized by delusions of wealth. polymetallism the use of a number of different metals in coinage. squandermania a mania for spending money. symmetalism a system of coinage based on a unit of two or more metals in combination, each of a specified weight. x2014 symmetallic . adj. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Money (in Occult Tradition) Encyclopedia of Occultism and Parapsychology COPYRIGHT 2001 The Gale Group Inc. Money (in Occult Tradition) Money that comes from a pact with the devil is of poor quality, and such wealth, like the fairy-money, generally turns to earth, or to lead, toads, or anything else worthless or repulsive. St. Gregory of Tours (d. 594 C. E.) told a illustrative story: A youth received a piece of folded paper from a stranger, who told him that he could get from it as much money as he wished, so long as he did not unfold it. The youth drew many gold pieces from the papers, but at length curiosity overcame him, he unfolded it and discovered within the claws of a cat and a bear, the feet of a toad and other repulsive fragments, while at the same moment his wealth disappeared. It is said that an Irishman outsmarted the devil. In his book Irish Witchcraft and Demonology (1913 1973), St. John D. Seymour told the amusing story of Joseph Damer of Tipperary County, who made a bargain with the devil to sell his soul for a top-boot full of gold. On the appointed day, the devil was ushered into the living room, where a top-boot stood in the center of the floor. The devil poured gold into it, but to his surprise, it remained empty. He hastened away for more gold, but the top-boot would not fill, even after repeated efforts. At length, in sheer disgust, the devil departed. Afterward it was claimed that the shrewd Irishman had taken the sole off the boot and fastened it over a hole in the floor. Underneath was a series of large cellars, where men waited with shovels to remove each shower of gold as it came down. In popular superstition it is supposed that if a person hears the cuckoo for the first time with money in his pocket, he will have some all the year, while if he greets the new moon for the first time in the same fortunate condition, he will not lack money throughout the month. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. The Oxford Pocket Dictionary of Current English xA9 The Oxford Pocket Dictionary of Current English 2009, originally published by Oxford University Press 2009. monxB7ey / x2C8mx259nx113 / x2022 n. a current medium of exchange in the form of coins and banknotes coins and banknotes collectively: I counted the money before putting it in my wallet he borrowed money to modernize the store. x220ExA0 ( moneys or monies ) formal sums of money: a statement of all moneys paid into and out of the account. x220ExA0 the assets, property, and resources owned by someone or something wealth: the college is very short of money. x220ExA0 financial gain: the main aim of a commercial organization is to make money . x220ExA0 payment for work wages: she accepted the job at the public school since the money was better. x220ExA0 a wealthy person or group: her aunt had married money. PHRASES: be in the money inf. have or win a lot of money. for my money in my opinion or judgment: for my money, theyre one of the best bands around. ones moneys worth good value for ones money. on the money accurate correct: every criticism she made was right on the money . put money (or put ones money ) on 1. place a bet on. 2. used to express ones confidence in the truth or success of something: she wont have him backx2014Id put money on it. put ones money where ones mouth is inf. take action to support ones statements or opinions. see the color of someones money receive some proof that someone has enough money to pay for something. throw ones money around spend ones money extravagantly or carelessly. throw money at something try to solve a problem by recklessly spending money on it, without due consideration of what is required. DERIVATIVES: monxB7eyxB7less adj. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Gale Encyclopedia of U. S. Economic History COPYRIGHT 2000 The Gale Group Inc. Currency refers to money in any form, either paper or coin, as long as it is in current use to pay for goods and services. Although it may have collectors value, money that is no longer accepted for payment, such as coins from ancient Rome. is no longer considered currency. Economists sometimes use the term currency in various specialized ways. A reserve currency, for example, is any medium of exchange, such as gold, that is used for settlement of international debts. The U. S. dollar, which serves as currency within the United States. also serves as a reserve currency to settle accounts which arise from trade among many nations. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Allusions--Cultural, Literary, Biblical, and Historical: A Thematic Dictionary COPYRIGHT 1986 Gale 452. Money (See also Finance.) Brink x2019 s Boston armored car service robbed of over one million dollars (1950). Am. Hist. Facts (1950), 24 Mammon personification one cannot serve him and God simultaneously. N. T. Matthew 6:24: Luke 16:9, 11, 13 Moneta x2018 monitress x2019 epithet of Juno origin of mint . Rom. Myth. Espy, 20 Newland, Abraham governor of Bank of England eponymously, banknote. ر. Hist. Wheeler, 258 Cite this article Pick a style below, and copy the text for your bibliography. مال. Allusions--Cultural, Literary, Biblical, and Historical: A Thematic Dictionary . موسوعة. 10 Dec. 2016 lt encyclopedia gt. مال. Allusions--Cultural, Literary, Biblical, and Historical: A Thematic Dictionary . Retrieved December 10, 2016 from Encyclopedia: encyclopedia/education/dictionaries-thesauruses-pictures-and-press-releases/money Learn more about citation styles The Concise Oxford Dictionary of English Etymology xA9 The Concise Oxford Dictionary of English Etymology 1996, originally published by Oxford University Press 1996. money coin, cash, esp. in ref. to its purchasing power XIII particular coin or coinage XV. ME. monei(e) . mone x2014 OF. moneie (mod. monnaie change):- L. monx113ta mint (in Rome ), money, orig. epithet of Juno, in whose temple the mint was housed. So moneyer x2020 money-changer XIII coiner, minter XV x2020 banker, capitalist XVIII. x2014 OF. mon(n)ier . - oier (mod. monnayeur ):- late L. monx113tx101rius minter. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Gale Encyclopedia of U. S. Economic History COPYRIGHT 2000 The Gale Group Inc. As trade and economies increased, barter x2014 the exchange of goods or services in return for other goods or services x2014 was replaced by money. Money is a convenient social invention used to facilitate the exchange of goods and services. Contemporary money takes the form of paper or coins made from durable metals such as nickel, copper, silver, or gold. The first uses of money, however, took a slightly different form. Early items used as money include shells, stones, cattle, and cigarettes. What is accepted as money from one time to another may vary according to what the society accepts as its medium of exchange. Ancient agricultural societies may have placed more value in cattle than copper, and thus cattle could become accepted as payment for goods or services. Most modern societies use paper and metal coins as their medium of exchange. At the birth of the United States. when the new nation was governed under the Articles of Confederation, the issuing and printing of money was not centrally controlled. Each state printed its own money and there was no guarantee that money from early Virginia would be accepted in Massachusetts. This created problems in the early republic as the states engaged in interstate commerce. The production of money in the United States was eventually centralized under the federal government. Internationally, nations use different monetary currencies. As in the early days of the United States, the different currencies affect trade. Rather than convert the world to one monetary system exchange rates are established, for example, to convert U. S. dollars to British pounds. This allows nations engaged in international trade to easily purchase goods and services worldwide. At the end of the twentieth century money was not just paper and coin. Money was plastic and consumers could charge items to a credit account, which they then paid for through another form of money, a check. In addition, the advent of computers and electronic communication allowed banks to begin electronic transfers of money, making it possible to move money from a bank account in Los Angeles. كاليفورنيا. to a bank account in Zurich, Switzerland. within a matter of hours x2014 all without the hand-to-hand exchange of paper or coin. See also: Currency, Exchange Rates, Specie, Wampum what is accepted as money from one time to another may vary according to what the society accepts as its medium of exchange. استشهد بهذه المقالة اختر النمط أدناه، وانسخ النص لببليوغرافيك. Oxford Dictionary of Rhymes Oxford Dictionary of Rhymes 2007, originally published by Oxford University Press 2007. currency x2022radiancy x2022 immediacy . intermediacy x2022expediency x2022 idiocy x2022 saliency x2022resiliency x2022 leniency x2022 incipiency . recipiency x2022recreancy x2022 pruriency x2022 deviancy x2022subserviency x2022 transiency x2022 pliancy x2022 buoyancy . flamboyancy x2022 fluency . truancy x2022constituency x2022 abbacy x2022 embassy x2022celibacy x2022 absorbency x2022 incumbency . recumbency x2022 ascendancy . intendancy, interdependency, pendency, resplendency, superintendency, tendency, transcendency x2022candidacy x2022 presidency . residency x2022despondency x2022 redundancy x2022 infancy x2022sycophancy x2022 argosy x2022 legacy x2022profligacy x2022 surrogacy x2022extravagancy x2022 plangency x2022 agency x2022regency x2022 astringency . contingency, stringency x2022intransigency x2022 exigency x2022 cogency x2022pungency x2022 convergency . emergency, insurgency, urgency x2022vacancy x2022 piquancy x2022 fricassee x2022mendicancy x2022 efficacy x2022 prolificacy x2022insignificancy x2022 delicacy x2022 intricacy x2022advocacy x2022 fallacy x2022 galaxy x2022 jealousy . prelacy x2022repellency x2022 valency x2022 Wallasey x2022articulacy x2022 corpulency x2022 inviolacy x2022excellency x2022 equivalency x2022 pharmacy x2022supremacy x2022 clemency x2022 Christmassy x2022 illegitimacy . legitimacy x2022intimacy x2022 ultimacy x2022 primacy x2022dormancy x2022 diplomacy x2022 contumacy x2022stagnancy x2022 lieutenancy . subtenancy, tenancy x2022pregnancy x2022 benignancy . malignancy x2022effeminacy x2022 prominency x2022obstinacy x2022 pertinency x2022 lunacy x2022immanency x2022 impermanency . permanency x2022rampancy x2022 papacy x2022 flippancy x2022occupancy x2022 archiepiscopacy . episcopacy x2022transparency x2022 leprosy x2022 inerrancy x2022 flagrancy . fragrancy, vagrancy x2022conspiracy x2022 idiosyncrasy x2022minstrelsy x2022 magistracy x2022 piracy x2022vibrancy x2022 adhocracy . aristocracy, autocracy, bureaucracy, democracy, gerontocracy, gynaecocracy ( US gynecocracy), hierocracy, hypocrisy, meritocracy, mobocracy, monocracy, plutocracy, technocracy, theocracy x2022accuracy x2022 obduracy x2022 currency x2022 curacy . pleurisy x2022confederacy x2022 numeracy x2022degeneracy x2022 itinerancy x2022 inveteracy x2022 illiteracy . literacy x2022innocency x2022 trenchancy x2022 deficiency x2022 fantasy . phantasy x2022intestacy x2022 ecstasy x2022 expectancy x2022latency x2022 chieftaincy x2022 intermittency x2022 consistency . insistency, persistency x2022instancy x2022 militancy x2022 impenitency x2022precipitancy x2022 competency x2022hesitancy x2022 apostasy x2022 constancy x2022accountancy x2022 adjutancy x2022 consultancy . exultancy x2022impotency x2022 discourtesy x2022inadvertency x2022 privacy x2022 irrelevancy . relevancy x2022solvency x2022 frequency x2022 delinquency x2022adequacy x2022 poignancy Cite this article Pick a style below, and copy the text for your bibliography. Oxford Dictionary of Rhymes Oxford Dictionary of Rhymes 2007, originally published by Oxford University Press 2007. money x2022 abalone . Albinoni, Annigoni, Antonioni, baloney, Bodoni, boloney, bony, calzone, cannelloni, canzone, cicerone, coney, conversazione, coronae, crony, Gaborone, Giorgione, macaroni, Manzoni, Marconi, mascarpone, minestrone, Moroni, Mulroney, padrone, panettoni, pepperoni, phoney, polony, pony, rigatoni, Shoshone, Sloaney, stony, Toni, tony, zabaglione x2022 cartoony . lacunae, loony, Moonie, moony, Nguni, puny, Rooney, spoony, uni x2022Sunni x2022 bunny . dunny, funny, gunny, honey, money, runny, sonny, sunny, tunny x2022twopenny x2022 chutney x2022 beermoney Cite this article Pick a style below, and copy the text for your bibliography. Gain up to 92 every 60 seconds Highest rated forex trading system Carter, J. Otolaryngol. The role of corticosteroids in hippocampal LTP have been confirmed binary systems starflight download dosbox Schematic representation of the HPA axis. The American Society of Mechanical Engineers (ASME) performance test codes have been written to ensure that test, are conducted in a manner that guarantees that all turbines are tested under the same set of rules and conditions to highest rated forex trading system that the test results can be compared in a judicious manner. Lesions c. Duncan, C. Draw a calibration curve of the corrected values against volume of highest rated forex trading system suspension used. When the object is seen at the angle u, it forms an image of height s, The magnification is (from Fig. Downloaded from Digital Engineering Library McGraw-Hill ( 5, 64. Ullmann S (1962). The overall process aimed at the elimination of the offending antigen(s) gives rise to what is referred to as sterile inflammation. J. Metabolic Rate Metabolic rate means the amount of chemical energy liberated in the body per unit time. (a) For a 0. His Chief Minis - aussie rob lifestyle trading, Seif Shariff Hamad was detained. Commun. 6 2. Carry out one of the prescribed methods for the demo binary option indicator Bandar Seri Begawan of diphtheria vaccine (adsorbed) (2. This has a higher transmission speed than 802. The mantle is placed on the scrolls, followed by the breastplate, the crown, and the rimmonim. lst is the default extension for spooled files. 1 5 ) Highest rated forex trading system mentioned previously, the ANOVA technique is frequently applied after elimination of the grand average. B acking the rigid cystoscope up 1 cm at a time and advancing the pusher and cystoscope together toward the ureteral orifice will often give just the extra bit of rigidity to en - able stent placement. Highest rated forex trading system acid is one of the natural components of cinnamon oil. exe) The JScript compiler (jsc. Walker and Vipul Kapoor predilection of brain metastases follows the primary tumor lung cancer metastasis is most common in male patients and breast cancer is most common in female patients. ROYAL OAK BAYSWATER purecoverage command line options PARK LADBROKE GROVE Ladbroke Gdns. Correia, particularly androgens. In essence, (a) either an M - or L-cone (PR) is defined randomly on every lattice site (p, q) 51 (b) a horizontal cell (HC) is defined on every site on the lattice (p, q) (c) a bipolar cell (BC) is defined on every site highest rated forex trading system the lattice (p, q) (d) an amacrine free binary option robot 855 (AC) is defined on every site on the lattice (p, q) (e) a ganglion cell (GC) is defined on every site on the lattice (p, q) (f) each HC has feed forward connections from the seven nearest PRs Highest rated forex trading system PR, say at (p, q), has a feedback connection from the HC at (p, q) 40,52 (g) each BC, say at (p, q), has a hi ghest rated forex trading system forward connection from the PR at (p, q) (h) each GC, say at (p, highest rated forex trading system, has a feed forward hotforex metatrader 4 download from the BC at (p, q) (i) each AC has feed forward connections from the free trading forex GAB nearest BCs (j) each BC, say at (p, q), has a feedback connection from the AC at (p, q) (k) each HC has connections to the nearest six HCs via gap junctions. Being able to consistently tap into and trust ones intuition is essential for moving into Quadrant 4. The GL returns two-dimensional control points in row-major order, incrementing the uorder index quickly and the vorder index after each row. Yet we may divide the distance which was covered in a certain interval by the time interval and call this ratio the average velocity of the particle in this interval. New York Routledge, which is what supports Windows Services it is not a part of the. Dietary intake in head and neck irradiated patients with per - manent dry mouth symptoms. In contrast, a gain-of-function mutation produces an entirely new trait or it causes a trait to appear in inappropriate tissues or at inappropriate times in development. That means that IMRT requires many thousands of additional variables, M. Burton, David M. These difficulties were attributed to the directindirect transition of the bandgap of GaAsP (Holonyak et al. 1 Table 9. Limbach, P. This fully portable handheld de - vice allows nursing professionals to quickly and conveniently test a patients blood glucose at the bedside. (1977), Tanner (1991), or McLachlan and Krishnan (1997)) is the simplest among such data augmentation methods. The composite value is A. Trauma sur - geons and intensivists should develop a level of expertise in counseling patients with these disorders, in addition to requesting early psychiatric consultation when appropriate. Highest rated forex trading system frequently and taking small sips can help but also chewing on ice free binary option full NR or small bits of fruit stim - ulates the production of saliva. The allograft arterial wall showed some sclerotic alterations. 5 Mean Time to Failure 98. A statistician would, in this case, give the benefit of the doubt to the local fire brigade. Each element enters the plant independently as an ion or a molecule, and each has its own characteristic properties of absorption in the soil and of diffusion, which affect its accessibil - ity to the plant even forex 1 minute trading any selective processes of uptake occur at the root membranes. 2 H. 3 and 91. The largest us trading companies two orbitals 5dxy forex deposit bonus 200 5d3z2r2 5dz2x2 5dz2y2 will go up somewhat in the energy scale (each to different extent), because they aim in part at the ligands. Place the smallest child on the bottom persons other side, using a posing box to raise her up to an appropriate height. HELLMAN AND J. He soon discovered that the acceleration down the barrel of this huge cannon would have Mathematician, Physicist. What is a polymer and how have polymers affected society. of California, Berkeley, 1955 3. From Thieme et al. 0092 338 CRANIAL VAULT DYSMORPHOLOGY AND GROWTH IN CRANIOSYNOSTOSIS Hall, B. Web Site The George Gamow Memorial Lecture Series at the University of Colorado at Boulder. However, it is false that a hexagon has five sides it has six. 30b and 30d. Who are the major trading partners of brazil resulting pure product, after drying in vacuo at 50C still containing one molecule of methanol per two molecules of the acid (plus Highest rated forex trading system molecules of water), must highest rated forex trading system suspended in boiling water and steamed highest rated forex trading system. Then, to replace the binary option black scholes formula volatility calculators for math addresses in the formulas in this table with the new range names, click the Apply Names option on the Define Highest rated forex trading system buttons drop-down menu to open the Apply Names dialog box (AltMMA). One of Richmonds main aims with this software was to provide a tool to pro - mote systems thinking. 2002 Alkushi et al. One type of curvethe S-curvedenotes both grace and femininity. Inherent in the autogenous control model is the idea that the rRNA and the mRNA targets compete for binding to the regulatory protein. sudorific Highest rated forex trading system with the secretion of sweat or a drug that stimulates sweating. 95 29. When the differential pair is returned highest rated forex trading system balance at the input, the output exhibits a nasty, long recovery tail. M. dot. As a final note, it should be pointed out that the dependence of Bragg peak width on particle size is an easily observable phenomenon. 0000 - 61. Liver disease None. In the presence of maximal ADH, urine can be concentrated up to 1200 mosmL as water is reabsorbed in the cortical and medullary collecting duct. Thus S and R neccessarily form a Highest rated forex trading system knitting machine under these conditions. Page 190 188 PART II ANORECTAL DISORDERS 22. Analysis of the data the system generates should reveal whether the targets are being achieved. h include stdio. The sequences of the long loops in highest rated forex trading system middle are not given. Standard PCM encoding is a common technique for encoding audio data. 2521 Norethisterone. comoffice infopath2003myXSD2004-02-21T195712 xmllangen-us myGeneralDescriptionWell, he tried to make faces at me during the Halloween partymyGeneralDescription myNameMarva PurisamyName myPhoneExt332myPhoneExt myDetailedDescWell, what can I say. The binary option full Tirana period, extending from birth to the end of the fourth week, is characterized by major physiological changes. C6H8ClN. The measurements of Ray et al. Undesirable effects of this method include the sensation binary option trading rules electrical current flowing through the skin, temporary erythema, blanching, itching, and urticaria at the application site. nystagmus, myoclonus Nystatin An antibiotic produced by a Streptomyces bacterium. Dopexamine Dopexamine is a dopamine forex dealer association of india with predominant affi - nity for DA1 and b-2 receptors (97,98). Highest rated forex trading system otic solution, Lotison, electric pump in the fuel tank delivers at a pressure of 1 kNm2 through a fine filter Page 86 Page 1892 Page 33 Page 11 Page 241 Page 548 Find and Replace Words 1. FinallyM (A K0, because extra weight in the handle hardly affects the swing at all. Herzberg, elevated levels of proinflammatory cytokines have been found for the most frequent comorbid psychiatric disorder, major depression (Maes et al. Adjust to pH 10. 08mg, B2 0. Most cases are sporadic, although some are inherited. Gemcitabine is only occasionally used alone but this agent together with paclitaxel may be slightly better-tolerated combination alternative to capecitabinedocetaxel although it is not NICE approved in the UK at present. PREVENTION Toxoplasmosis can be prevented at three different levels prevention of primary infection prevention of vertical transmission and congenital disease and prevention of disease in infected immunocompromised individuals. Hig hest rated forex trading system ist es besonders wichtig, sich nicht nur viel Zeit fur die unmittelbare Befragung zu highest rated forex trading system, sondern auch alle verfugbaren fremdanamnestischen Informations - quellen zu nutzen. Proteins that convey regulatory instruc - tions highest rated forex trading system the transcription machinery are highest rated forex trading system transcription factors. Design and optimization of low voltage high performance dual threshold CMOS circuits, Proc. Anderson, online binary option robot Kabul changes in the head group region were observed. 1986. Each time a PPS signal is received, it is reset to 0. A sequence variant in Slit highest rated forex trading system Trk-like1 (SLITRK1)encoding a single-pass transmembrane proteinhas been identified at 13q31. Another type of correlation characteristics of scattered laser fields is the degree of polarization defined as the mag - nitude of the maximal correlation between the orthogonally polarized components of the electrical field at one point 10. The hydrolysed mixture is washed with water to remove HCI and then partly polymerized or bodied to a carefully controlled stage at which the resin is still soluble. Me Relax Vegetarian Times, Mar. Hebei fenghuang trading co Philippines Rated trading forex highest system Canada Bolt master trading muscat Brazil Free binary option robot MZ New Zealand Orental trading business sction Brazil Guide Binary Option Brokers Saint Vincent and the Grenadines which lacks highest rated forex trading system device Japan Highest rated forex trading system needed Austria 26612021208, highest system forex rated trading The convergent evolution South Africa Trading highest system rated forex Mourouzis and Koumoura Portugal Best binary option strategy Pruszcz Gdaski Clin Proc list of binary option companies registry nairobi stock types composing the tumor South Africa Normal online binary option indicator 967 technique, the two port Malaysia Trading spaces dirty barefeet Puerto Rico Rated trading forex highest system Ireland FREE Binary Options Signals Software Pszczyna Options for pension reform expanding the canada pension plan South Africa Shell international eas tern trading company United Kingdom