Money and Debt : : the Public Role of Banks.

• Superior document: Research for Policy Series
• Author: Stellinga, Bart.
• TeilnehmendeR: de Hoog, Josta.; van Riel, Arthur.; de Vries, Casper.
• Place / Publishing House: Cham : : Springer International Publishing AG,, 2021.; ©2021.
• Year of Publication: 2021
• Edition: 1st ed.
• Language: English
• Series: Research for Policy Series
• Physical Description: 1 online resource (257 pages)

Table of Contents

• Money and Debt: The Public Role of Banks
• Preface
• Contents
• About the Authors
• Chapter 1: Introduction
• 1.1 What Is Money?
• 1.2 What Is Debt?
• 1.3 The Importance of Trust
• 1.4 The Dynamism of the Financial Monetary System
• 1.5 Overview of the Report
• Bibliography
• Chapter 2: How Is Money Created?
• 2.1 Banks and Money Creation
• 2.1.1 Electronic Payments and Cash Withdrawals
• 2.1.2 Free Money?
• 2.2 Driving and Constraining Forces
• 2.2.1 The Role of Households and Businesses
• 2.2.2 Banks ́Balance Sheet Risks
• 2.2.2.1 Absorbing Losses - Leverage and Capital Ratios
• 2.2.2.2 Meeting Withdrawals: Liquidity Ratios and Reserve Requirements
• 2.3 Monetary Policy
• 2.3.1 Objectives and Instruments
• 2.3.2 How Monetary Policy Works in Practice
• 2.3.3 Quantitative Easing
• 2.4 Conclusion
• Bibliography
• Chapter 3: The History of Money Creation
• 3.1 Money and Finance in the Nineteenth Century
• 3.1.1 Money and Payments
• 3.1.2 Financing
• 3.1.3 Policy and Regulation
• 3.1.4 Summary: Money Creation in the Nineteenth Century
• 3.2 The Interwar Period and the Great Depression (1918-1939)
• 3.2.1 Money and Payments
• 3.2.2 Financing
• 3.2.3 Policy and Regulation
• 3.2.4 Summary: Money Creation in the Interwar Period
• 3.3 The Bretton Woods Period (1945-1973)
• 3.3.1 Money and Payments
• 3.3.2 Financing
• 3.3.3 Policy and Regulation
• 3.3.4 Summary: Money Creation in the Bretton Woods Period
• 3.4 The Pre-crisis Period (1973-2008)
• 3.4.1 Money and Payments
• 3.4.2 Financing
• 3.4.3 Policy and Regulation
• 3.4.4 Summary: Money Creation in the Pre-crisis Period
• 3.5 Conclusion
• Bibliography
• Chapter 4: An Appraisal of the Financial Monetary System
• 4.1 Economic Contribution
• 4.1.1 The Payment System
• 4.1.2 The Volume of Debt
• 4.1.3 Reducing Debt Levels
• 4.2 Stability.
• 4.2.1 Stability of Individual Banks
• 4.2.2 Systemic Instability
• 4.3 Fairness
• 4.3.1 The Public Costs of a Crisis
• 4.3.2 Financial Benefits for Banks
• 4.3.3 Benefits and Costs of Increased Indebtedness
• 4.4 Legitimacy and Influence
• 4.4.1 The Public-Private Nature of Financial Institutions
• 4.4.2 Options for Democratic Control
• 4.4.3 Position of Citizens
• 4.5 Conclusion
• Bibliography
• Chapter 5: How Does the Sovereign Money System Work?
• 5.1 The Payment System
• 5.1.1 Payment Accounts at Payment Institutions
• 5.1.2 Payment Accounts at the Central Bank
• 5.1.3 Conclusion
• 5.2 The Financial System
• 5.2.1 Financing Institutions Operating on the Basis of Debt
• 5.2.2 Financing Institutions Operating on the Basis of Equity Only
• 5.2.3 Private and Public Lending
• 5.3 Monetary Policy and Financial Regulation
• 5.3.1 The Creation, Allocation and Destruction of Money
• 5.3.2 Regulating the Financial System
• 5.3.3 Independence and Accountability
• 5.4 Transition to the New System
• 5.4.1 Towards a New Payment System
• 5.4.2 Towards a New Financial System
• 5.5 Conclusion
• Bibliography
• Chapter 6: Advantages and Disadvantages of the Sovereign Money System
• 6.1 Economic Contribution
• 6.1.1 The Operation of the Payment System
• 6.1.2 The Financial Systemś Procyclicality
• 6.1.3 Price and Availability of Credit
• 6.1.4 One-Off Debt Reduction
• 6.1.5 Summary
• 6.2 Stability
• 6.2.1 The Stability of Individual Institutions
• 6.2.2 Systemic Risks
• 6.2.3 Summary
• 6.3 Fairness
• 6.3.1 Abolition of Implicit and Explicit Public Support
• 6.3.2 Seigniorage
• 6.3.3 The Benefits and Costs of Debt
• 6.3.4 Summary
• 6.4 Legitimacy
• 6.4.1 The Separation of Public and Private Activities
• 6.4.2 Public Control and Democratic Oversight
• 6.4.3 The Position of Citizens
• 6.4.4 Summary
• 6.5 Other Issues.
• 6.5.1 The International Dimension
• 6.5.2 The Transition
• 6.5.3 Dynamics and Innovation
• 6.6 Conclusion
• Bibliography
• Chapter 7: Policies to Restore the Balance in the Current System
• 7.1 Taming the Money and Debt Cycle
• 7.1.1 Curbing the Growth of Debt
• 7.1.1.1 Macroprudential Policy
• 7.1.1.2 Tax Incentives
• 7.1.2 Policy Coherence and the Structure of the Financial Sector
• 7.1.2.1 Policy Coherence
• 7.1.2.2 Structural Measures
• 7.1.3 Preparedness for the Next Financial Crisis
• 7.1.3.1 Tightening of Banking Supervision
• 7.1.3.2 Problem Banks
• 7.1.3.3 Monetary Policy in the Next Crisis
• 7.1.3.4 Interim Conclusion
• 7.2 Balance Between Public and Private Interests
• 7.2.1 A Clearer Boundary Between Public and Private Interests
• 7.2.1.1 The Ring-Fencing of Public Activities
• 7.2.1.2 Reducing the Public Guarantee
• 7.2.1.3 Better Representation of Public Interests in the Banking Sector
• 7.2.1.4 Greater Awareness of Public Duty
• 7.2.1.5 Position of the Citizen
• 7.2.2 Interim Conclusion
• 7.3 Conclusion
• Bibliography
• Chapter 8: Conclusions and Recommendations
• 8.1 How Does Money Creation Work?
• 8.2 The Goals of the Financial Monetary System
• 8.3 Is the Sovereign Money System a Solution?
• 8.4 Two Major Challenges for the Current System
• 8.4.1 Balanced Growth of Money and Debt
• 8.4.2 Balance Between Public and Private Interests
• 8.5 Recommendations
• 8.5.1 Promote Diversity in the Financial Sector
• 8.5.2 Curb Excessive Debt Growth
• 8.5.3 Be Better Prepared for the Next Crisis
• 8.5.4 Anchor the Banks ́Public Dimension
• 8.6 Conclusion
• Bibliography
• Annexes
• Annex I: List of Experts Consulted
• Annex II: Tax Regime, Debt and Banks ́Risk Attitude
• Bibliography.