What money does the economy need (new money for payments)
The money that exists now (that rubles, that dollars, that any other currencies of the modern economy) is scarce by its very nature. With one relative exception - in periods of active economic growth, based on the rapid growth of the mass of credit money in relation to the growth in real turnover and real labor productivity, their scarcity decreases and becomes less visible. But even during these periods, it (deficiency) remains an inherent property of money associated with a number of objective factors (presence of lending rates, financial bubbles, diversion of funds into savings, etc.).
When the economy is in a downturn, then the money for payments, i.e. to fulfill the main function of money, it is no longer enough in the most obvious way.
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In this regard, we consider a simplified model problem for constructing new units of account (new money in addition to the existing ones), intended for use exclusively in calculations. Taking into account all sorts of life difficulties such as positions and ideologies of national elites, the need to adjust legislation, etc. for now, refrain First you need to solve a simpler problem - the construction of this new entity.
As is customary in exact sciences, for example in mathematics, we will take some initial data as an axiom or for given initial and boundary conditions. Soothe those who immediately seek to argue - this is just the standard way of constructing any model.
In order not to be confused in terms, we will immediately introduce a definition for a new type of money for settlement - for example, let it be Special Means of Settlement (abbreviated SSR).
So the initial conditions and assumptions for the introduction of the SSR:
1. The SSR (at least at the first stage) is intended for use by the state to finance (and stimulate) the most important (for the state) infrastructure projects, such as road construction.
2. The conditions must be provided for the use of SSR exclusively in calculations in the real economy.
The following restrictions or requirements for the emission and turnover of the SSR follow from these two initial conditions as a way of their realization:
1. The Issuer is a state represented by the Government or a special body under the Government, but not the Central Bank (this requirement should be considered only in conjunction with all others).
2. By the SSRs, the state finances its share in the public-private associations created for the implementation of specific infrastructure projects (although this is not necessary - it is possible to implement other ways of introducing SRR into circulation).
3. It is allowed to pay taxes using the SSR (and this is one of the key conditions for the model in question). At least federal taxes.
4. SSR exist exclusively in non-cash form.
5. The SSR is money with a demurrage (payment for "storage"). For example only, I will name the specific amount of demurrage acceptable now for our economy - 0.5 percent per month. Demurrage is another key condition. Since it is a condition tested in practice that actually prevents these funds from going out of circulation into accumulation and into speculation and accelerates turnover. By the way, a curious consequence of the introduction of the demurrage will be the desire of economic entities not only to pay all taxes, but also to pay them in advance (there have been such examples in history).
6. The non-cash nature of the SSR and the availability of demurrage will make it relatively easy to introduce and monitor the implementation of the following restrictions:
- SSRs cannot be settled on the organized currency and financial markets (i.e., they should not be allowed to buy currency or securities on the organized market).
7. SSR emission not by the central bank, their accounting is not in bank accounts, but in some kind of “depository” and not the banking system of their transfers (transactions) - here we cannot do without modern IT technologies in the form of, say, block-chain technologies - in turn will provide a real basis for the following limitations that are useful for this model:
- SSR can not be given and borrowed at interest.
- SSR can not be used to repay loans and pay interest (and any other payments) to banks.
We will certainly be realistic and recognize that it will not be possible to fully comply with all the above limitations. There are always workarounds. But the scale of the withdrawal of the SSR from circulation and their transfer to the currency and financial sector and putting it back into a jug will be an order of magnitude less than when using ordinary money for the same purposes.
The main obstacle to circumventing the restrictions will of course be the demurrage. Money with a demurrage cannot be saved and used in savings.
Non-cash nature and modern IT technologies (in particular, it is not difficult to give an individual number to each monetary unit of the Soviet Socialist Republic) will allow you to track and make publicly available all transactions with this money. And this is a real and serious obstacle to anyone who wants to break some kind of prohibitions on the turnover of the USSR.
Actually, I mentioned earlier, and now I will note once again that it can be assumed (this is just an assumption) that, wherever SSR is used in calculations, the possibilities for corruption will be significantly reduced. Since you cannot convert this into a currency, you cannot export it abroad, you cannot transfer it in an envelope, and in general the transaction base is publicly available (of course, the latter remains to be done).
Extensive global and historical experience of introducing local additional currencies allows us to confidently assert that this system is efficient and it speeds up turnover, and also reduces unemployment along the way. There can also be extremely useful long-term social consequences in changing the very nature of social attitudes towards life values. But let's not go away from the economy here.
How to determine how much SSR the economy needs and how much they can be pumped into the economy without the risk of negative consequences such as a substantial increase in inflation?
1. If CPPs are allowed to pay taxes, then the volume of the issue of the SSR, of course, should not be greater than the amount of those taxes on which they can pay. For example, in the budget of the Russian Federation for 2015 (we are talking about the unconsolidated budget of the Russian Federation), the share of VAT and income tax accounts for about 40% (5.5 trillion rubles). And in the structure of budget expenditures it is planned to spend 2.2 trillion rubles on the national economy. From these figures, taking into account the fact that the turnover of each issue of CPP (with a 0.5% demurrage per month) is unlikely to take more than 3 years, it is possible to deduce a reasonable limit on a single issue of SSR subject to the adoption of SSR in payment of federal taxes only. A figure of no more than 1.8 trillion rubles suggests itself (let me emphasize, while we are speaking of a one-time emission of the Soviet Socialist Republic - we will carry out a verification test, so to speak).
2. For reference: the volume of the national welfare fund (the figures change over the years) of the order of 5 trillion rubles. 10% of this amount (0.5 trillion rubles) is often proposed to be spent on infrastructure projects. Assuring that this will in no way affect inflation.
3. So is it better to send 0.5 trillion from the National Welfare Fund (and some of this money will certainly go to the foreign exchange market and financial assets) or the same (or even a slightly larger amount) as the above-described SSRs? The level of risk of adverse consequences (unless additional research is done) is approximately the same, and the positive effect in the case of the Soviet Socialist Republic will be much greater (since by accelerating the turnover at the same time, each ruble introduced into the economy with a demurrage will give more new goods and services than the usual ruble). And the increase in the quantity of goods and services is, by the way, a real anti-inflationary remedy.
Well, what about those enterprises and organizations that received CPP as payment, paid all taxes, paid off suppliers, and did they still have some of the SSR?
In this case, I suppose, a temporary storage system or a system for the repurchase of surplus SSRs should be provided. The state can be the person who buys back (with a certain discount naturally) the excess CPP. And you can enter a special type of mutual funds intended for temporary storage (without demurrage) of unused SSRs and their re-entry into the economy. But this is already significant, but the details.
A natural continuation of the use of the SSR for financing large infrastructure projects may be their use in the system of financing public procurement. So getting the SRR back to the budget, the state can then send them to finance public procurement.
Another thought on the topic of whom to finance through the SSR.
Of course, you can use the existing system of assessing the financial solvency of borrowers, their credit histories, etc. But here as an important additional (and possibly the main) criterion for selecting recipients of the Soviet Socialist Republic there may be a share and amount of taxes paid and the tax discipline of enterprises and organizations. And when evaluating projects - recipients of the Soviet Socialist Republic - naturally, first of all, you can take into account the planned tax payments.
When the economy is in a downturn, then the money for payments, i.e. to fulfill the main function of money, it is no longer enough in the most obvious way.
')
In this regard, we consider a simplified model problem for constructing new units of account (new money in addition to the existing ones), intended for use exclusively in calculations. Taking into account all sorts of life difficulties such as positions and ideologies of national elites, the need to adjust legislation, etc. for now, refrain First you need to solve a simpler problem - the construction of this new entity.
As is customary in exact sciences, for example in mathematics, we will take some initial data as an axiom or for given initial and boundary conditions. Soothe those who immediately seek to argue - this is just the standard way of constructing any model.
In order not to be confused in terms, we will immediately introduce a definition for a new type of money for settlement - for example, let it be Special Means of Settlement (abbreviated SSR).
So the initial conditions and assumptions for the introduction of the SSR:
1. The SSR (at least at the first stage) is intended for use by the state to finance (and stimulate) the most important (for the state) infrastructure projects, such as road construction.
2. The conditions must be provided for the use of SSR exclusively in calculations in the real economy.
The following restrictions or requirements for the emission and turnover of the SSR follow from these two initial conditions as a way of their realization:
1. The Issuer is a state represented by the Government or a special body under the Government, but not the Central Bank (this requirement should be considered only in conjunction with all others).
2. By the SSRs, the state finances its share in the public-private associations created for the implementation of specific infrastructure projects (although this is not necessary - it is possible to implement other ways of introducing SRR into circulation).
3. It is allowed to pay taxes using the SSR (and this is one of the key conditions for the model in question). At least federal taxes.
4. SSR exist exclusively in non-cash form.
5. The SSR is money with a demurrage (payment for "storage"). For example only, I will name the specific amount of demurrage acceptable now for our economy - 0.5 percent per month. Demurrage is another key condition. Since it is a condition tested in practice that actually prevents these funds from going out of circulation into accumulation and into speculation and accelerates turnover. By the way, a curious consequence of the introduction of the demurrage will be the desire of economic entities not only to pay all taxes, but also to pay them in advance (there have been such examples in history).
6. The non-cash nature of the SSR and the availability of demurrage will make it relatively easy to introduce and monitor the implementation of the following restrictions:
- SSRs cannot be settled on the organized currency and financial markets (i.e., they should not be allowed to buy currency or securities on the organized market).
7. SSR emission not by the central bank, their accounting is not in bank accounts, but in some kind of “depository” and not the banking system of their transfers (transactions) - here we cannot do without modern IT technologies in the form of, say, block-chain technologies - in turn will provide a real basis for the following limitations that are useful for this model:
- SSR can not be given and borrowed at interest.
- SSR can not be used to repay loans and pay interest (and any other payments) to banks.
We will certainly be realistic and recognize that it will not be possible to fully comply with all the above limitations. There are always workarounds. But the scale of the withdrawal of the SSR from circulation and their transfer to the currency and financial sector and putting it back into a jug will be an order of magnitude less than when using ordinary money for the same purposes.
The main obstacle to circumventing the restrictions will of course be the demurrage. Money with a demurrage cannot be saved and used in savings.
Non-cash nature and modern IT technologies (in particular, it is not difficult to give an individual number to each monetary unit of the Soviet Socialist Republic) will allow you to track and make publicly available all transactions with this money. And this is a real and serious obstacle to anyone who wants to break some kind of prohibitions on the turnover of the USSR.
Actually, I mentioned earlier, and now I will note once again that it can be assumed (this is just an assumption) that, wherever SSR is used in calculations, the possibilities for corruption will be significantly reduced. Since you cannot convert this into a currency, you cannot export it abroad, you cannot transfer it in an envelope, and in general the transaction base is publicly available (of course, the latter remains to be done).
Extensive global and historical experience of introducing local additional currencies allows us to confidently assert that this system is efficient and it speeds up turnover, and also reduces unemployment along the way. There can also be extremely useful long-term social consequences in changing the very nature of social attitudes towards life values. But let's not go away from the economy here.
How to determine how much SSR the economy needs and how much they can be pumped into the economy without the risk of negative consequences such as a substantial increase in inflation?
1. If CPPs are allowed to pay taxes, then the volume of the issue of the SSR, of course, should not be greater than the amount of those taxes on which they can pay. For example, in the budget of the Russian Federation for 2015 (we are talking about the unconsolidated budget of the Russian Federation), the share of VAT and income tax accounts for about 40% (5.5 trillion rubles). And in the structure of budget expenditures it is planned to spend 2.2 trillion rubles on the national economy. From these figures, taking into account the fact that the turnover of each issue of CPP (with a 0.5% demurrage per month) is unlikely to take more than 3 years, it is possible to deduce a reasonable limit on a single issue of SSR subject to the adoption of SSR in payment of federal taxes only. A figure of no more than 1.8 trillion rubles suggests itself (let me emphasize, while we are speaking of a one-time emission of the Soviet Socialist Republic - we will carry out a verification test, so to speak).
2. For reference: the volume of the national welfare fund (the figures change over the years) of the order of 5 trillion rubles. 10% of this amount (0.5 trillion rubles) is often proposed to be spent on infrastructure projects. Assuring that this will in no way affect inflation.
3. So is it better to send 0.5 trillion from the National Welfare Fund (and some of this money will certainly go to the foreign exchange market and financial assets) or the same (or even a slightly larger amount) as the above-described SSRs? The level of risk of adverse consequences (unless additional research is done) is approximately the same, and the positive effect in the case of the Soviet Socialist Republic will be much greater (since by accelerating the turnover at the same time, each ruble introduced into the economy with a demurrage will give more new goods and services than the usual ruble). And the increase in the quantity of goods and services is, by the way, a real anti-inflationary remedy.
Well, what about those enterprises and organizations that received CPP as payment, paid all taxes, paid off suppliers, and did they still have some of the SSR?
In this case, I suppose, a temporary storage system or a system for the repurchase of surplus SSRs should be provided. The state can be the person who buys back (with a certain discount naturally) the excess CPP. And you can enter a special type of mutual funds intended for temporary storage (without demurrage) of unused SSRs and their re-entry into the economy. But this is already significant, but the details.
A natural continuation of the use of the SSR for financing large infrastructure projects may be their use in the system of financing public procurement. So getting the SRR back to the budget, the state can then send them to finance public procurement.
Another thought on the topic of whom to finance through the SSR.
Of course, you can use the existing system of assessing the financial solvency of borrowers, their credit histories, etc. But here as an important additional (and possibly the main) criterion for selecting recipients of the Soviet Socialist Republic there may be a share and amount of taxes paid and the tax discipline of enterprises and organizations. And when evaluating projects - recipients of the Soviet Socialist Republic - naturally, first of all, you can take into account the planned tax payments.
Source: https://habr.com/ru/post/296864/
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