Capital Maintenance in Units of Constant Purchasing Power in terms of the Daily CPI: How to automatically stabilise your economy

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).

Guidance

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]yahoo.com.

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

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Daily CPI

1. Argentina Daily CPI - CER (Coeficiente de Estabilización de Referencia)

Click in sequence: "Estadísticas e Indicadores"

"Monetarias y Financieras"
"Descarga de paquetes estandarizados de series estadísticas":

At the bottom of the page you will see: "Coeficiente de estabilización de referencia (CER), serie diaria", then choose a year and open the excel file.

2. Chile - UF: Daily Unidad de Fomento Index. Not a Daily CPI, but a monetized daily indexed unit of account.

3. Colombia - Real Value Unit A Monetized Daily Indexed Unit of Account

4. Denmark Inflation-Linked Bonds

5. Eurozone Daily CPI Click on "Download historical data"

6. France Daily CPI Click on "Download historical data"

7. Germany Daily Reference Index

8. Iceland - Daily CPI

8. Iceland- CPIs - including Daily CPI

9. Ireland Inflation-Linked Bonds

10. Italy Inflation-Linked Bonds

11. Japan - Daily CPI

12. Mexico - Unidad de Inversion Click on UDI and then select Export to HTML