Monday, 28 January 2013

How to automatically stabilise your economy

How to automatically stabilise your economy

Stop the stable measuring unit assumption (i.e. stop Historical Cost Accounting).



1.       Implement IFRS-authorised Capital Maintenance in Units of Constant Purchasing Power in terms of a Daily Index.

2.       Inflation-index all monetary items daily in terms of a Daily Index with all money inside the banking system.

3.       The Central Bank is required to pay to (during inflation) or receive from (during deflation) commercial banks interest in terms of the Daily Index on the total overnight cash balances in commercial banks.

Do not ask the IASB for guidance in this issue. They do not understand IFRS-authorised CMCUPP. Contact me for guidance at realvalueaccounting[at]

Nicolaas Smith
Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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