Browse

You are looking at 1 - 10 of 121 items for :

  • Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems x
  • Russian Federation x
  • Public Economics x
  • Financial Economics x
Clear All
Mr. Malcolm D. Knight, Arne B. Petersen, and Robert T. Price

Abstract

For the past six years, the central banks of the Baltics, Russia, and other countries of the former Soviet Union have undertaken ambitious programs of reform.1 The reforms have focused first on stabilizing monetary policy and then on achieving a market-based determination of interest and exchange rates. The reform of central bank operating procedures has been a key piece of the program. Central banks in the 15 countries have been encouraged to manage banking liquidity through market operations with indirect instruments. There have also been closely coordinated reforms to foster foreign exchange markets, interbank money markets, government securities markets, and to strengthen various central bank functions, including the payment system, central bank accounting and internal audit, and banking supervision and restructuring. This volume examines the progress the 15 countries have made in transforming their financial systems, and highlights the substantial progress achieved by central banks in most of the countries.

A. Premchand

Abstract

Traditionally, the literature on accounting and central banking has viewed payments systems in government as a mechanical process. Consequently, scant justice has been done to systems that bring the government closer to the taxpaying public.1 For the purposes of this analysis, accounting is viewed as a system with two primary purposes—to organize all procedures connected with the receipt and disbursement of funds to and by the government, and to organize bookkeeping so that these transactions can be recorded in a transparent manner that will allow full disclosure of the financial status of a government entity Payments, either to or from the government, represent the first operational stage in the financial management process of the government but should not be viewed as a purely internal process of the government. The growth of central banking and the associated development of clearing arrangements have reached the stage at which they need to be considered in conjunction with the linkages between the central bank and the government. Indeed, the improvements that a government can make in these payments systems are dependent on the level of development of the banking payments system. In addition, gradual improvement in the application of computer technology and related electronic processing has opened up new vistas, and organizations and systems that were hitherto considered essential are now being reviewed to determine if they are viable in the new context. There is, moreover, a perennial need to make the operations cost effective and user friendly. These considerations suggest that payments systems have entered the mainstream for accountants, expenditure managers, and central bankers—reason enough to consider the various aspects of the systems. The chapter therefore considers first the distinction between accounting and payments systems and later deals with the payment processes, organization, modes of payment, relationships with the banking system, and financial reporting. The concluding section is devoted to a consideration of the interenterprise arrears that have emerged during recent years as a major issue in the economies in transition.

Eduardo Levy-Yeyati

Abstract

Country experiences with monetary operations and government securities markets have been highly diverse, but a general pattern seems to have emerged since early 1992: most countries have moved toward more central bank operational autonomy and increased reliance on indirect instruments and on market-based interest rates. In addition, with few exceptions, reforms have led to a slow but sustained growth of the interbank and government securities markets. The sequencing of reforms has varied widely across countries, because of different political and macroeconomic conditions, and faster developments in one central banking area have not always been accompanied by similar progress in others (Table 2.1).

A. Premchand

Abstract

Government accounting has traveled a long distance during the last two and a half millennia. Writing about government accounts, Kautilya noted, a long time ago, that their purpose was to keep precise and detailed accounts of the king’s landed property, crops, cattle, and other assets and of revenue and expenditure. To serve these purposes, he classified the accounting heads, or chapters, as they have come to be known, under which transactions were to be recorded and how daily accounts were to be submitted on a monthly basis. His framework included the maintenance of accounts of transactions and a list of punishments for the “more than forty ways” of stealing government money.1 Accounting constituted an integral part of the state craft. Since the unveiling of double-entry bookkeeping a little more than five hundred years ago, some governments have moved to this type of system, although many still maintain accounts on a single-entry basis.

A. Premchand

Abstract

Continued fiscal austerity over the years has diverted the debate from the allocation of resources to the measurement and containment of costs within government. This diversion has led to a more detailed investigation into the approaches to costing in government and the ways in which they could be refined. At the same time, the role of accounting discipline in governments and public bodies needs to be defined, the techniques of cost measurement specified, and appropriate standards set forth for the purpose. Although the emphasis on measuring costs has received an additional impetus during recent years, governments have been concerned with determining costs, even if selectively, for a number of years.1 For example, they have traditionally estimated the costs of irrigation projects, multipurpose river valley projects, and, in industrial countries, major defense projects before making budget decisions. Cost estimation was mostly limited to new investments and new projects and was covered under the broad rubric “investment planning.” But such investments, even at the best of times, represent only a fraction of the total activities of public bodies. Although the rationale for ascertaining costs always existed in government operations, it has received deliberate attention in government circles only for the past three decades.

Mr. Bernard J Laurens

Abstract

As a group, the Baltics, Russia, and other countries of the former Soviet Union have achieved substantial progress in the areas of convertibility, foreign exchange market development, and central bank foreign exchange operations over the last six years. The institutional arrangement for an efficient market-based allocation of foreign exchange is in place in most countries; payments and transfers for current account transactions are free of restrictions, except in a limited number of countries; and several countries maintain a liberal system for capital account transactions, or interpret liberally the restrictions in place. Nominal exchange rates have begun to stabilize in most countries (Figure 3.1). The ratio of gross international reserves to imports also indicates that countries are moving to macroeconomic stabilization (Table 3.1). Foreign exchange markets are usually shallow, however, with banking unsoundness often an obstacle to market deepening.