Abstract

http://ssrn.com/abstract=277508
 
 

Citations (3)



 


 



The use of Central Banks to Spread Ownership


Shann Turnbull


International Institute for Self-Governance; Sustainable Money Working Group

May 7, 2001


Abstract:     
This paper outlines institutional arrangements for achieving accelerated self-financed democratic development with investment, consumption, income and savings increasing together instead of relying on a reduction of consumption to create the savings to finance investment or the need to use foreign finance. The arrangements are dependent upon introducing market forces to allocate interest free credit expansion by the Central Bank to finance projects that are self-financing to increase output. Credit is allocated by the price of investment loan insurance obtained through private sector markets outside the banking system. The cost of insurance replaces the cost of interest for democratically owned and controlled investments. An original theoretical framework is used to explain the arrangements. This identifies "consumption" and "degenerate" assets and the need for their current costs not to exceed current surplus values generated by "procreative" assets to allow accelerated development to be sustained without increasing government or external debt.

Number of Pages in PDF File: 12

Keywords: Central banks, Economic development, Democratic ownership, Loan insurance, Monetary policy, Self-financing

JEL Classification: B59, D39, E22, E43, E5, F33, G22, O16, O23

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Date posted: July 29, 2001  

Suggested Citation

Turnbull, Shann, The use of Central Banks to Spread Ownership (May 7, 2001). Available at SSRN: http://ssrn.com/abstract=277508 or http://dx.doi.org/10.2139/ssrn.277508

Contact Information

Shann Turnbull (Contact Author)
International Institute for Self-Governance ( email )
PO Box 266 Woollahra
Cell: +61418222378
Sydney, New South Wales 1350
Australia
+61293278487 (Phone)
+61280655905 (Fax)
HOME PAGE: http://independent.academia.edu/ShannTurnbull/CurriculumVitae
SKYPE: shann.turnbull
Sustainable Money Working Group ( email )
Holyoake House
Hanover Street
Manchester, M60 0AS
United Kingdom
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