IFRS and US GAAP authorised CMUCPP™ maintains the constant purchasing power of constant real value non-monetary items (salaries, wages, pensions, taxes, trade debtors/creditors, equity) only in terms of a Daily CPI in entities that break even in real value in inflation and deflation - ceteris paribus. It would stop the global destruction by the stable measuring unit assumption in constant items of hundreds of billions of USD p.a. now taking place under traditional Historical Cost Accounting.
Perfect solution for stopping Iran´s hyperinflation overnight at no cost
Perfect solution for stopping Iran´s
hyperinflation overnight at no cost
a top American professor suggests overnight solutions to hyperinflation to
Iran, then I can too.
difference is that the Daily Index Plan comes at no cost to Iran. Very costly Dollarization
or an equally costly currency board, as suggested by Prof. Steve Hanke to Iran,
are now obsolete and irrelevant solutions.
half of the Daily Index Plan – capital maintenance in units of constant
purchasing power eliminating the entire cost of the stable measuring unit
assumption from the Iranian constant item economy - was authorized in International Financial Reporting Standards
twenty three years ago, includes a perfect solution and will soon be required
by the International Accounting Standards Board worldwide. The other half also uses the perfect solution: the US
Dollar daily exchange rate being used as the Daily Index for the Iranian rial´s
exchange rate with the US Dollar resulting in a constant rial always being exactly
equal to the US Dollar.
other half: Daily indexing of the entire rial money supply which would
eliminate the complete cost of hyperinflation from the Iranian monetary economy
overnight at no cost.
Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.