Are Free Market Fiduciary Media Possible? On the Nature of Money, Banking, and Money Production in the Free Market Order

Recent debates in monetary theory have centered on so-called free banking and the role of banks in providing money in the form of fiduciary media in a pure market economy. This paper examines how and to what extent fiduciary media can emerge in a pure market economy. Based on the theory of value, it is argued that those economists are mistaken who claim that money substitutes must in all cases be interpreted as being money titles. Those economists too are mistaken, however, who claim a large role for the circulation of fiduciary media in a pure market economy. It is argued that holding fiduciary media in one’s cash balance is an entrepreneurial error, as fiduciary media by their nature do not have the qualities people demand in holding money. Money is the comparatively most certain good and the present good par excellence, qualities that fiduciary media do not have. Holding fiduciary media instead of money is therefore an entrepreneurial error, and like all errors in the free market, it will tend to be eliminated in the process of entrepreneurial profit and loss, leading to the virtual disappearance of all fiduciary media from the market economy.

Vertical expansions : assessing the feasibility of building private residential space atop existing public community centres and libraries through a public-private partnership in Toronto's inner-suburbs

The aim of this study is to analyze the feasibility of building private residential space on top of existing publicly-owned inner-suburban Toronto community centres and library buildings through a public-private partnership. The numerous benefits and feasibility of these 'vertical expansions' to the community and government is validated by the potential ability to increase local access to services, compatibility with wider government planning objectives such as smart growth, and by the capacity to kickstart a virtuous economic cycle to increase quality of place. The appeal to private developers is demonstrated through considerations of the market, money, production, people and environment. Pilot sites where vertical expansions could best succeed are identified based on facility type, 'city 3' suburban status, potential marketability, and basic physical & structural considerations. 16 pilot sites were identified, which were further refined based on property value to identify the pilot sites with the highest potential for success. A model for a reductionist and mutually equitable P3 arrangement for both the development and post-construction management was proposed and informed by the literature review of past P3 case studies.

Vertical expansions : assessing the feasibility of building private residential space atop existing public community centres and libraries through a public-private partnership in Toronto's inner-suburbs

The aim of this study is to analyze the feasibility of building private residential space on top of existing publicly-owned inner-suburban Toronto community centres and library buildings through a public-private partnership. The numerous benefits and feasibility of these 'vertical expansions' to the community and government is validated by the potential ability to increase local access to services, compatibility with wider government planning objectives such as smart growth, and by the capacity to kickstart a virtuous economic cycle to increase quality of place. The appeal to private developers is demonstrated through considerations of the market, money, production, people and environment. Pilot sites where vertical expansions could best succeed are identified based on facility type, 'city 3' suburban status, potential marketability, and basic physical & structural considerations. 16 pilot sites were identified, which were further refined based on property value to identify the pilot sites with the highest potential for success. A model for a reductionist and mutually equitable P3 arrangement for both the development and post-construction management was proposed and informed by the literature review of past P3 case studies.

ISLAMIC ECONOMICS METHODOLOGY PATTERNS OF REASONING AND THE STRUCTURE OF THEORIES

In fact, the Islamic economy is a framework that has been extracted from the axiomatic scripture revealed by Allah Almighty S.W.T (The Holy Quran) and religious practices established by Muhammad SAW (Sunnah) to study contemporary economic phenomenon as per Islamic commercial jurisprudence confronting issues like employment, treatment of property, money, production and distribution, taxes, loans, interest (Riba) stability of prices, equitable distribution, growth rate, productivity, consumption of goods and services etc. that make sure maximum benefit (Falah) in a society or at large to the humanity (Ummah). The Islamic economy is not really a new discourse on whether its roots have evolved since the early days of Islamic civilization. Discussions on economic issues from an Islamic perspective started early and have flourished in the Islamic golden age since. However, economic issues are mainly solved by different branches and schools of economics. This raises a wide variety of methodological issues and several problems have been central to methodological reflection concerning economics. However, not much research attempts have been done to survey the origin of Islamic economic thought and portray its evolution towards becoming a discipline in contemporary times with its own body of knowledge and methodology. Therefore, this study is likely to fill this gap and chart the future direction of the discipline will also be highlighted with some evaluations of the current state of the arts.

A Generalized Exposition of Money Creation in the Money and Banking Course

Since the Great Recession, monetary policy conducted by the U.S. Federal Reserve and other central banks has changed. However, the discussion regarding money creation and the money multiplier has not been altered in undergraduate money and banking textbooks. We suggest a change to the presentation of money creation by first removing the use of T-accounts and replacing them with a visual representation known as the money production diagram. We then present a money production function that is much like a standard production function as described in principles courses. The money multiplier is replaced by the average product of the monetary base in this production function. We use this production function to explain changes to the money supply from exogenous shocks or changes to policy. JEL classification: A22, E51, E52

Capital-Based Macroeconomics

The recent revival of boom-bust business cycles and the worldwide slow recovery from 2009–2012 has renewed interest in the analysis of a money-production economy developed by Keynes and capital-structure-based Austrian macroeconomics developed by Hayek, Mises, Rothbard, and, most recently, Garrison. Both approaches identify time, money, banking, financial markets, interest, and investment as the major sources of coordination failure leading to recession or depression. When compared with single-aggregate modern macroeconomic models, both Keynes’s and the Austrians’ models, with their lower level of aggregation, provide a better understanding of how an economy goes wrong, However, the chapter argues that Keynes’s model is flawed because it lacks a capital-structure foundation. Keynesian macroeconomic policy is generally unnecessary and, if applied consistently, destabilizes the economy. Austrian economics and its capital-based macroeconomics provide better guidance on cause, recovery, and, more important, prevention.