Corvus
  • Member for 7 years, 2 months
  • Last seen more than a week ago
Destroying the dollar
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26 votes

I think you misunderstand what "electronic money" is - moving electronic money around isn't simply a matter of sending the right "codes" - it is ultimately about asking the central bank of that ...

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What benefits do governments receive from not eliminating debt?
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20 votes

Most of the same considerations apply to countries as apply to businesses and people, plus a couple of extra cons Pros of Being Debt Free No interest payments Not beholden to someone else (financial ...

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Are there any states that don't have debt?
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11 votes

The classic answer here would be Libya and Brunei, but I think Libya now has debt. Brunei is a strange case in that it uses a joint currency with Singapore dollar, controlled by the monetary ...

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From an economics perspective, what are the ramifications of a currency with fixed money supply?
7 votes

The other answers are correct in respect of what would happen if the money supply of a currency was kept constant, however there is nothing in bitcoins to ensure that money supply will stay fixed ...

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Piracy/File sharing - Why aren't songs, movies or ebooks given for free (+ads) like TV?
4 votes

Firstly there are services like this in Spotify, and even radio and tv, but it sounds like you are talking about downloading the material with ads in. That causes a problem. Revenue from ads relies ...

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Why did the Swiss National Bank abandon its currency peg so suddenly?
4 votes

Just to synthesize the other two answers together a bit and "join-the-dots". Setting the Scene Since 2011 SNB had decided that it wanted to prevent the CHF from strengthening past 1.2 CHF per EUR. ...

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Why was Swiss National Bank in red by keeping fix exchange rate to Euro?
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4 votes

From a central bank's point of view, printing money isn't free. Each 1 CHF created costs exactly 1 CHF - that is, it appears on the bank's balance sheet as a liability. They owe that 1 CHF to ...

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Why do we need base money at all?
3 votes

TL;DR You have defined a de facto currency with that bank as a central bank. It is generally considered better to have everyone using the same currency. In theory, what you suggest can indeed work, ...

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What if only the government could create money?
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3 votes

When you dig down, this questions is very nearly a duplicate of this: Implications of abolishing Fractional Reserve Banking on mortgages and interest rates but based on the comments, it seems that ...

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Is the Federal Reserve even necessary?
3 votes

On the Federal Reserve First off a technicality; there isn't a Federal Reserve bank, but 12 Federal Reserve banks that together make up the Federal Reserve System. The Federal Reserve System acts as ...

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Do institutions buy debt with credit?
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2 votes

This is extremely common in institutional markets, and is called a "repo" transaction - short for Repurchase agreement In a repo transaction, you "sell" the bond to the bank and agree to buy it back ...

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Does each stock exchange only trade in one currency?
2 votes

An exchange can handle more than one currency, but this would be uncommon for equities. An example is the ICE futures exchange in Europe. Multiple currencies doesn't cause any particular problems - ...

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Independence of latent price and market microstructure noise
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2 votes

The microstructure noise is, roughly speaking, the small-scale noise introduced into the market as a result of the way the market is designed. For example, suppose that there is an asset and the "...

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Uncovered interest parity and asymmetric capital controls
2 votes

In principle it shouldn't really matter that a sub-population (in this case the locals) have capital restrictions, so long as the unrestricted population is sufficiently large. The UIP model only ...

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How come the CBO reported the Federal Deficit for FY2014 was \$483 Billion when debt went up by \$1.1 trillion?
2 votes

First off, you are looking at the wrong column to compare like with like. Total debt went from \$16.7tr to \$17.8tr but that includes intragovernmental debt. Changes in this number will net out in ...

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Can changes in the value of money be measured via interest rates and future contracts?
1 votes

Yes, but... In theory what you suggest is pretty standard text book, and in fact Keynes makes exactly this point in his book The General Theory of Employment, Interest and Money as a way of getting a ...

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Is there an equilibrium between privately owned and publicly listed companies?
1 votes

I don't know exactly how the numbers would work out, but you would expect an equilibrium but it will depend on many factors. A complication is that you have public companies taken private and private ...

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