BIBLIOTECA MANUEL BELGRANO - Facultad de Ciencias Económicas - UNC

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A new financial system for poverty reduction and growth / prepared by Biagio Bossone and Abdourahmane Sarr.

Por: Colaborador(es): Tipo de material: TextoTextoSeries IMF working paper ; no. 02/178Detalles de publicación: Washington, D.C. : International Monetary Fund, 2002Descripción: 42 pTema(s): Clasificación CDD:
  • 21 332.7
Recursos en línea: Resumen: Our proposal draws on the premise that the availability of stable demand deposits for bank lending, in the process of which inside money is created, does not require any act of intentional saving. The mechanism allowing banks to lend deposits does not function well in low-income countries, owing to a number of structural constraints. We argue that separating inside money creation from lending, and distributing it on a nonlending basis to depositors through specialized payment service institutions, could broaden access to financial resources, fuel non-inflationary, demand-led growth; and foster financial deepening, diversification, and stability. We also argue that the proposed reform is consistent with market incentives and sound economic management.

Bibliografía: p. 40-42.

Our proposal draws on the premise that the availability of stable demand deposits for bank lending, in the process of which inside money is created, does not require any act of intentional saving. The mechanism allowing banks to lend deposits does not function well in low-income countries, owing to a number of structural constraints. We argue that separating inside money creation from lending, and distributing it on a nonlending basis to depositors through specialized payment service institutions, could broaden access to financial resources, fuel non-inflationary, demand-led growth; and foster financial deepening, diversification, and stability. We also argue that the proposed reform is consistent with market incentives and sound economic management.

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