Can a central bank go bust?
Article Abstract:
Central banks' expansionary fiscal activities run counter to desired seigniorage revenue. Present value analysis of central bank accounting shows that the acquisition of assets and liabilities required by government erodes a large part of the bank's profits. Insolvency due to such practices has become evident in several developing countries, an example of which is Argentina. The study suggests that for any given value of inflation, the acquisition of liabilities greater in market value than present value seigniorage profits can cause central bank insolvency.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1992
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The pricing of options on Ninety-Day Bank Accepted Bill Futures Contracts
Article Abstract:
Three option pricing models, which assume log-normally distributed yields and prices, favor pricing of bank accepted bill futures options based on log-normally distributed yields. For example, commercial borrowers and lenders are exposed to losses due to undesirable fluctuations in short-term interest rates in Australia. Probable losses can be averted by using Ninety-Day Bank Accepted Bill Future Contracts, traded in Sydney Future Exchange because the bank accepted bill rates indicate the short-term interest rates.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1996
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Traverse in a two-sector Kaleckian model of growth with target-return pricing
Article Abstract:
The conventional Cambridgian growth models where differences in demand are satisfied in the long term by price changes given a normal rate of capacity utilization appear to have been replaced by Kaleckian growth models of growth and distribution. The latter is stretched to cover a two-sector framework which contains an investment good and a consumption good, wherein the traverse from one steady growth path to another is analysed.
Publication Name: The Manchester School of Economic and Social Studies
Subject: Social sciences
ISSN: 0025-2034
Year: 1997
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