Dynamic Quantity Theory of Money:Research on Monetary Cycle and Business Cycle Based on the Concepts of Issuing Money and Operating Money

The Quantity Theory of Money and the Theory of Credit Creation have been the major streams in the study of the quantity of money.Nowadays,monetary theory is dominated by the Quantity Theory of Money because the Monetarist School and the Rational Expectation School are both the advocates of the Quantity Theory of Money,which has resulted in a sharp decrease of scholars studying the Theory of Credit Creation.Nevertheless,the two theories will ultimately converge.Given that reason,we propose a new theory-Dynamic Quantity Theory of Money in this paper,by which the unification of the Quantity Theory of Money and the Theory of Credit Creation can be achieved.Based on the Dynamic Quantity Theory of Money,we further put forward the Theory of Money Operation Cycle,the Theory of Monetary Compensation and Theory of Investment Compensation targeting economic crises,expound why Quantitative Easing monetary policy fails and why Quantitative Easing does not cause inflation in the short term under the premise of these theories,and demonstrate the necessity of fiscal investment for rescuing economic crisis from the perspective of theories of money.

Pedaling for a Cause A Chinese adventurer cycles through Africa to raise money to power a village in Benin

Yuan Jianglei has an amazing story to tell. The 27 year old is one of a handful of people who can say they have cycled through Africa - solo.Yuan began his epic adventure in the West African country of Benin, ending 10,544 km and 333 days later in his hometown of Ningbo, east China＇s Zhejiang Province.

Hot Money Flows, Cycles in Primary Commodity Prices, and Financial Control in Developing Countries

Because the U.S. Federal Reserve＇s monetary policy is at the center of the world dollar standard, it has a first-order impact on global financial stability. However, except during international crises, the Fed focuses on domestic American economic indicators and generally ignores collateral damage from its monetary policies on the rest of the world. Currently, ultra-low interest rates on short-term dollar assets ignite waves of hot money into Emerging Markets （EM） with convertible currencies. When each EM central bank intervenes to prevent its individual currency from appreciating, collectively they lose monetary control, inflate, and cause an upsurge in primary commodity prices internationally. These bubbles burst when some accident at the center, such as a banking crisis, causes a return of the hot money to the United States （and to other industrial countries） as commercial banks stop lending to foreign exchange speculators. World prices of primary products then collapse. African countries with exchange controls and less convertible currencies are not so attractive to currency speculators. Thus, they are less vulnerable than EM to the ebb and flow of hot money. However, Afi-ican countries are more vulnerable to cycles in primary commodity prices because food is a greater proportion of their consumption, and--being less industrialized--they are of their commodity exports. Supply-side more vulnerable to fluctuations in prices shocks, such as a crop failure anywhere in the world, can affect the price of an individual commodity. But joint fluctuations in the prices of all primary products--minerals, energy, cereals, and so on--reflect monetary conditions in the world economy as determined by the ebb and flow of hot money from the United States, and increasingly from other industrial countries with near-zero interest rates.

Hot Money and Business Cycle Volatility:Evidence from China

This paper investigates the link between hot money and business cycle volatility in China from January 1997 to December 2009. Using the structural vector error correction model we find a considerable degree of long-run cointegration and bidirectional causality effects between hot money and business cycle volatility. The speculative shocks are found to temporarily promote China＇s economic growth, but also to exacerbate business cycle volatility. The liquidity shock stemming from hot money is shown to be the primary factor responsible for the significantly enhanced fluctuation in business cycles during the most recent global financial crisis period This could be detrimental to the smooth operation of financial markets. Therefore, informing future policies, it is critical for policy-makers to take precautions against the speculative factors.

ACCOUNTING STANEARDS FOR BUSINESS ENTERPRISES

(Follow the Third Issue)CHAPTER IV LIABILITIESArticle 34.A liability is debt borne by an enterprise,measurable by money value,which will be paid to a credi-tor using assets,or services.Article 35.Liabilities are gen-erally classified into current liabili-ties and long-term liabilities.Article 36.Current liabilities refer to the debts which should be paid off within a year or an oper-ating cycle longer than a year,in-cluding short-term loans payable,

Near-zero U.S. Interest Rates, Primary Commodity Prices, and Financial Control in Emerging Markets

The U.S. Federal Reserve's monetary policy at the center of the world dollar standard has a first-order impact on global financial stability. However, except in moments of international crises, the Fed focuses inward on domestic American economic indicators and generally ignores collateral damage from its monetary policies in the rest of the world. But this makes the U.S. economy less stable. Currently, ultra-low interest rates on dollar assets ignite waves of hot money into emerging markets by carry traders that generate bubbles in international primary commodity prices and other assets. These bubbles burst when some accident at the center, such as a banking crisis, causes a reflux of the hot money. Ironically, these near-zero interest rates hold back investment in the American economy itself.