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The monetary assets working group, for example, consisted of Vodafone, Shell, Diageo, Tesco, G4S, International Power and BHP Billiton.
Although monetary assets such as cash or accounts receivable are usually measured by their value, most other assets are measured at cost.
On the other hand, the huge Japanese investment in monetary assets denominated in dollars is not in the long-run interest of either country.
First, net monetary assets (essentially cash and receivables minus liabilities calling for fixed monetary payments) lose purchasing power as the general price level rises.
As confirmation, consider this LA Times report on surging bank deposits; basically, people are holding monetary assets simply as a safe place to park their wealth, and the banks have no desire to put those funds to work.
Even if increases in the assets and liabilities of uncontrolled intermediaries wholly offset enforced reductions in the supplies of controlled monetary assets, even if monetary expansion means equivalent contraction by uncontrolled intermediaries, monetary controls can still be effective.
Similar(39)
"The demise of gold as a monetary asset has been one of the keys to the demise of commodities as an inflation hedge," he said.
Gold is an August monetary asset but an undependable investment.
Convertible into no U.S. monetary asset except pocket change, it has no intrinsic value.
"Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today".
What alternative monetary asset the rich (and the almost-rich) should consider is another subject for another day.
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