Released cash is used to bridge the fiscal deficit

by lonelyintexas Sat 17 Oct 2015, 7:17 pm

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Released cash is used to bridge the fiscal deficit

by lonelyintexas Sat 17 Oct 2015, 7:17 pm

Released cash is used to bridge the fiscal deficit

10/18/2015 0:00

BAGHDAD - Imad emirate

is the return of the cash release of important issues that have a lot of implications of an economic, political and institutional significance, and there is disagreement about how to measure it and receiving it and how it is distributed.

In general, it is significantly associated purpose of carrying out the version that is monopolized by the government or monetary authority according to the legal and political conditions prevailing.

In this context, the economic expert Dr. said. Falah Thuwaini :. The majority of economists agree that the return on cash release is one of the ways in which the government uses to finance its budget deficit.

There are few who believe that the political, institutional and economic reasons that explain this return.

So economic studies aimed at verifying the determinants of return on the cash version by using multiple gauges.

He Thuwaini the importance of this return by economic Keynes say: (that the government can behave and choose this method when you do not find a way or another way, a tax form in which it deems the most public cruelty so that they can not evade, and even the weakest governments can be imposed when they are not able to impose something else).

He said that governments need money to be spent, and have some of these expenses allocated for the purchase of goods and services and others to finance transfer payments.

The government financed its expenditures based on three ways:

the first is to increase revenues through taxes.

The second way is to borrow from the public through the sale of government bonds, and the last by the possibility of printing money.

The revenue that comes through printing money known as the (return cash release) which is achieved in two ways namely return cash release and high rates of inflation. He Thuwaini, Practically that the actual way for issuing currency is through the purchase of government debt by the central bank and the payment of the value of that debt by issuing influence to finance this debt, which is called b (monetizing the debt).

It can return cash release definition in general (as the yield which combines by the relevant government sovereignty of monopoly cash release) or process (as the sum of all revenues generated from the feature of monopoly to issue money), as monetary issuance is known (as a control on social resources or purchasing power generated through the issuance of money).

and between Thuwaini that the transition from a barter system to use the money source to provide resources and large gains, these gains could fall within the concept of return on cash release, which included a significant reduction in the cost of the information contained compare the relative prices of goods and services in all aspects of the economy.

In the past, the return of cash release represents the difference between the cost of the alloy and the nominal value of the coins minted.

Some economists still believe at the present time a yield of monetary issuance but upheld a fee or tax to pay for the government minted or printed money.

It should be noted that some people go so far as to assume that the government uses revenue from issuing money to purchase goods and give aid to some countries, free of charge and (economic) for political purposes. He d. Thuwaini, there are those who believe that the process of issuing coins are similar to the real production process.

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Interesting I like the coin talk.
Thanks
LIT
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