News

The “accounting view” of money: money as equity

Biagio Bossone, Massimo Costa  |  May 15, 2018

By Biagio Bossone, includes “Although the law says that money is “debt,” a correct application of the general principles of accounting raises doubts about such a conception of money. Debt involves an obligation between lender and borrower as contracting parties. Yet, for the state, which obligation derives from the rights entertained by the holders of coins? Or, for a central bank, which obligation derives from the rights entertained by the holders of banknotes or the banks holding reserves?”

Read the full article on: The World Bank

 
comments powered by Disqus