This thesis aims to completely map the problem of new forms of money, called cryptocurrency. It explains the economic principles of functioning these decentralized currencies, particularly emitting (the mining), amount of fees and functioning of the payment system. The work is focused on the currency Bitcoin, for which it describes in detail its origin and development, possibility of simultaneous use (in many examples) as well as possible future scenarios of these currencies. In conclusion, the work describes role of Bitcoin in the current banking system and risks of the Bitcoin.
A relatively new phenomenon is the appearance of cryptocurrencies with bitcoins as their most prominent representative. In this article, the author discusses the VAT aspects of the use, exchange and mining of bitcoins under the EU VAT system.
It is a widely spread belief that crypto-currencies implementing a proof of stake transaction validation system are less vulnerable to a 51% attack than crypto-currencies implementing a proof of work transaction validation system. In this article, we show that it is not the case and that, in fact, if the attacker's motivation is large enough (and this is common knowledge), he will succeed in his attack at no cost.
Bitcoin is a new kind of money, which means a digital currency which can be used for commercial purposes. Over time, the trade has evolved from barter to the use of the precious metals as money, then to the coins with intrinsic value and to the symbol coins and later to the use of the electronic money, reaching at present to a virtual currency, created and used through the internet network. Bitcoin promises to its users getting high returns under conditions of low risk arising from transactions carried out instantly, without intermediary bank and almost no fees. At this moment, Bitcoin is still an experimental new currency, but in the future it can offer an alternative to previous costly systems and it can increase online business access to developing countries.
A bona fide currency functions as a medium of exchange, a store of value, and a unit of account, but bitcoin largely fails to satisfy these criteria. Bitcoin has achieved only scant consumer transaction volume, with an average well below one daily transaction for the few merchants who accept it. Its volatility is greatly higher than the volatilities of widely used currencies, imposing large short-term risk upon users. Bitcoin’s daily exchange rates exhibit virtually zero correlation with widely used currencies and with gold, making bitcoin useless for risk management and exceedingly difficult for its owners to hedge. Bitcoin prices of consumer goods require many decimal places with leading zeros, which is disconcerting to retail market participants. Bitcoin faces daily hacking and theft risks, lacks access to a banking system with deposit insurance, and it is not used to denominate consumer credit or loan contracts. Bitcoin appears to behave more like a speculative investment than a currency.
Part of Regional Otonomy in finance is giving local government to arrange regional receipt to purchase expenses bugget. Government genuine Receipt is one regional receipt that shows how stronger local goverment finance can handled all the expenditure, not only depend on Central Government. Metro and Lampung Timur same with another local government in Indonesia, wants the higher regional otonomy espescialy in finance. The higher decentralization indicate higher ability on local government to fulfill all expenditure. In can be analized from share of Government Genuine Receipt and Tax and non Tax Share compare Total Regional Receipt and Total Regional Expenditure. Higher fiscal Desentralization needed by Metro and Lampung Timur to get higher Regional otonomy.
Development of public services is the effect of applying administrative reforms involving the banks and financial contribution. Decentralization strengthening and modernization of administrative structures and public services is supported by the World Bank, International Monetary Fund and the European Union, supplement the financial resources to facilitate development. To attract financing funds, local governments often resort to loans from the banks that manage the funds targeted. Money is used to supplement the income of local governments who needs loans for financing European projects. Empirical research on this way will make disclosures regarding the various types of banks involved in this process.
Fiscal decentralization policy started in 2001 was a “big bang” from a centralistic into decentralistic government. The decentralistic government focuses on triple track strategy which are pro growth, pro job and pro poor as its macroeconomic and sectoral development objectives. Based on the concepts and the implementations of the policy in Indonesia, the amount of transfers fund to region and the possibilities of increasing potential local revenue should have positive related to the effort to increase society wealth through economic growth by creating job creation and decrease poverty. This research using panel data regression analysis to describe the relation between fiscal decentralization with economic growth, poverty and unemployement rate. The research results show that the local finance performance (measured by fiscal decentralization degree and local finance independency ratio) is low. Just then, in the decentralization era the local-central government dependency is increase. The research also encounter that fiscal decentralization policy affects to the increasing of economic growth rate (in small amount), unemployment rate and poverty. The part of local government budget that have positive affect to the economic growth are revenue sharing, specific allocation funds, local tax revenue and local government corporation, while local retribution revenue has negative affect. Meanwhile, total government expenditure affects negatively to the poverty and open unemployment rate.
In this chapter we develop a theoretical endogenous growth model where the capital in public infrastructures has an influence on the productivity of private firms. We compare the optimum and equilibrium growth rates and welfare levels, and the effects on the inefficiency of the decentralized equilibrium of the way public expenditures are financed. Then we analyse the determinants of the optimum level of public investment and of the optimal taxation structure, and we concentrate in particular on the possibilities of reducing the inefficiency associated with the decentralized equilibrium in endogenous growth models. Finally we examine the effects of debt financing in that kind of model.
This article examines the effect of party composition of government on the centralization of budgeting institutions in Hungary, Poland, the Czech Republic and Bulgaria in 1989-1999, and assesses the impact of the centralization of budgeting institutions on the capacity of these countries to meet the fiscal deficit requirement for the European Economic and Monetary Union (EMU) membership. The article finds that centralization of budgeting institutions through delegation to a strong finance minister and/or prime minister is likely to occur in one-party governments or coalition governments composed of parties which expect to fight repeated elections together, with effective punishment mechanisms. The article finds that countries with centralized budgeting institutions are likely to be more capable of meeting the EMU deficit requirement than countries with decentralized institutions.
The current economic problems in Southeast Asia can be attributed not to too much reliance on financial markets, but to too little . Like the U.S. economy a century ago, the emerging Asian economies do not have welldeveloped capital markets and so remain heavily dependent on their banking systems to finance growth. For all its benefits, banking is “not only basically 19th‐century technology, but disaster‐prone technology.” The extreme maturity (and, in some cases, currency) mismatch on banks' balance sheets plus the first‐come, first‐served nature of the deposit obligations mean that banks are inherently vulnerable to massive runs by depositors—and that their economies are subjected to periodic credit crunches. And, as the author says, “in the summer of 1997 a banking‐driven disaster struck in East Asia, just as it had struck so many times before in U.S. history.” In this century, In this century, the U.S. economy has steadily reduced its dependence on banks by developing “dispersed and decentralized” financial markets. In so doing, it has increased the efficiency of the U.S. capital allocation process and reduced its susceptibility to the credit crunches that have occurred throughout U.S. history. By contrast, Japan has not reduced its economy's dependence on banks, and its efforts to deal with its banking problems have served only to destabilize itself as well as its neighbors. Developing countries in Southeast Asia and elsewhere are urged not to follow the Japanese example, but to take measures aimed at developing financial markets and institutions that will either substitute for or complement bank products and services.
In Germany, small firms are financed chiefly by small banks, which are grouped into two systems: the savings banks (Sparkassen) and the credit cooperatives. The government actively supports the financing of investments in small industry - especially business start-ups. The author explains how small firms are financed in Germany. The author contends that small and meduim-size firms contribute a lot to the German economy. Small firms are not subject to the control institutions - such as supervisory board seats, proxy voting and equity holdings - that shape the relationships between large firms and large banks. The author also points out that small banks, which are part of a decentralized market structure, over come imperfections in the financial market by building institutions that supersede the market mechanism. The savings bank and credit cooperatives systems have each developed an internal capital, not unlike those within large banks operating nationwide. Only central institutions participate in the domestic money market, to place the system's excess liquidity or to raise funds to cover the systems deficits. Also, the funding programs of the government banks can be seen as a refinancing mechanism that especially helps small banks. The same is true for rediscountable trade bills.
CLOSED closed doors many closed meetings few roll calls little lobbying INDEPENDENT, BIPARTISAN bipartisan, unpredictable voting drafts its own legislation relies on own bureaucracies majority controls policy process but not policy substance strong on information weak on consensus weak on collective accountability DEPENDENT, PARTISAN partisan, predictable voting relies on administration relies on administration majority controls policy substance but not policy process weak on information strong on consensus strong on collective accountability DECENTRALIZED, CHAOTIC organization like market and clan allocation of values through exchange and seniority many unwritten rules pluralistic trust CENTRALIZED, DISCIPLINED democratic organization with elected authority allocation of values through elections with minority rights many written rules corporatistic distrust
Abstract The establishment of an effective local government system has been imperative in the Sudan both on account of the vast scale of the country and the decentralization policies of successive governments. District councils were initially established in 1951 following the Marshall Report, but were by stages superseded as budgetary authorities, and reduced to unimportance by the People's Local Government System in 1971, which vested responsibility in Councils at the Provincial level. The subsequent difficulties experienced by this system indicate the value of the District, now renamed Area, as a level for a multipurpose local authority in the Sudan, and explain the reemphasis of this level in the 1981 Local Government Act. This article summarizes the experience leading up to the 1981 Act, and examines the extent to which the new legislation offers an effective structure. The finance of local government, a recurrent problem in the Sudan, emerges as a critical issue, together with the future role of the Provincial Commissioner.