Money and Payments in Theory and Practice (Routledge International Studies in Money and Banking)

International in scope and written by a leading young Post-Keynesian economist, this book focuses on the working of money and payments in a multi-bank settlement system within which banks and non-bank financial institutions have been expanding their operations outside their countries of incorporation. Departing from conventionally held beliefs, Sergio Rossi sets off from a positive analysis of the logical origin of money, which is the essential principle of double-entry book-keeping through which banks record all debts and credits for further reference and settlement and provides theoretical and empirical advances in explaining money endogeneity for the investigation of contemporary domestic and international monetary issues. Showing that both money and banking have profound implications for real economic activities, this innovative work is essential reading, not only for scholars in monetary economics, but also for professionals concerned with monetary policy and payments system issues. Introduction Money and credit The essence of money The commodity theory of money: a critical appraisal The chartalist theory of money: an analytical assessment The mechanisms of credit Banks and credit Credit and production Money and credit supply Endogenous money and credit Banks and payments The monetary macroeconomics of banking The dual function of banks The meaning and purchasing power of bank deposits The monetary macroeconomics of payments Payments on the labour market Payments on the financial market Payments on the market for produced goods and services The central bank and the state The monetary macroeconomics of interbank payments The characteristics and workings of the national payment system The dual function of a central bank in domestic payment systems The monetary macroeconomics of state payments Some conceptual shortcomings in the state theory of money The dual function of a central bank in state payments International settlement systems The current architecture for international payments The lack of an international settlement institution The lack of international money emissions Reforming the international monetary architecture The working of an international settlement institution The working of international money emissions Monetary policy strategies Inflation theory and inflation targeting: a critical appraisal Some conceptual and analytical shortcomings Inflation in an endogenous money system A structural target for monetary policy: payment systems' reform The required structural change in domestic payment systems The operationalization of payment systems' reform Bibliography Author index Subject index. Departing From Conventionally Held Beliefs, Sergio Rossi Argues In Money And Payments In Theory And Practice That Money Is Not A Financial Asset And Banks Cannot Create Purchasing Power On Their Own. The Author Asserts That The Nature And Workings Of Money And Payments Have Not Been Thoroughly Understood In Both Theory And Practice. Money And Payments In Theory And Practice Points Out That The Origin Of Inflation May Lie In A Structural Discrepancy Between The Architecture Of Our Domestic Payment Systems And The Banking Nature Of Money. Sergio Rossi Puts Forward A Positive As Well As A Normative Approach To Dispose Of Inflation Through A Structural Change At The Payment Systems Level. This Work Will Be Essential Reading Not Only For Scholars In Monetary Economics, But Also For Professionals Concerned With Monetary Policy And Payments System Issues.--book Jacket. Introduction -- Money And Credit -- The Essence Of Money -- The Mechanisms Of Credit -- Banks And Payments -- The Monetary Macroeconomics Of Banking -- The Monetary Macroeconomics Of Payments -- The Central Bank And The State -- The Monetary Macroeconomics Of Interbank Payments -- The Monetary Macroeconomics Of State Payments -- International Settlement Systems -- The Current Architecture For International Payments -- Reforming The International Monetary Architecture -- Monetary Policy Strategies -- Inflation Theory And Inflation Targeting : A Critical Appraisal -- A Structural Target For Monetary Policy : Payment Systems' Reform. Sergio Rossi. Includes Bibliographical References (p. [133]-142) And Indexes. Book Cover......Page 1 Title......Page 6 Copyright......Page 7 Contents......Page 8 Illustrations......Page 10 Preface......Page 13 Acknowledgements......Page 15 Abbreviations......Page 17 Introduction......Page 18 1 Money and credit......Page 26 2 Banks and payments......Page 49 3 The central bank and the state......Page 81 4 International settlement systems......Page 106 5 Monetary policy strategies......Page 133 Bibliography......Page 150 Name index......Page 160 Subject index......Page 163