Putting it all together, it concludes that China's local and central liabilities, contingent and otherwise, amounted to 39.43% of GDP in 2012.The NAO itself stops there.
With luck, it can still turn its Central European liability into an asset.
Governments could oblige tax payments to be settled with central-bank liabilities, for instance, thus preserving a monetary base on which to act.
This paper estimates the cost of this round-trip transaction – government issuance of liabilities and central bank purchases of those liabilities in the secondary market – for the UK.
That is all that a central bank's liabilities promise: I owe you an IOU.These debts are also uniquely easy to service.
But any potential rise in defaults by local governments that require assistance from Beijing could add to the central government's liabilities, leaving less room for the government to spend money as the Chinese population ages.
Britain is imposing additional taxes on bankers' bonuses, America is imposing extra taxes on banks' liabilities, and central bankers are pondering ingenious ways to intervene in overheated markets.
After all, a balance sheet reveals a central bank's monetary liabilities (high-powered base money).
Most quantitative easing programmes primarily involve central banks acquiring government liabilities in return for central bank reserves.
The question of liability becomes a central issue in Flanagan's reporting on the current state of the Greek System.
India already has a separate bilateral agreement with Russia, and liability is less central an issue since Russian companies are state-owned.
