IFRS and US GAAP authorised CMUCPP in terms of the Daily CPI automatically maintains the constant purchasing power of capital and all constant real value non-monetary items (shareholders´ equity,
provisions, salaries, wages, pensions, taxes, trade debtors/creditors, etc) only when updated daily in terms of the Daily CPI during low, high and hyperinflation and deflation - ceteris paribus. European Accounting Association: "Capital maintenance is a competing objective of financial
Quantitative easing is thecreationofnewmoney by the central bank in the formofloanstocommercialbanksthatdoesnotresultinanincreaseininflation. A central bank increases commercial banks´reserveswith the centralbankbymeans of validloansthathave to bepaidbackby the commercial banks. The commercialbanks, havingmorereserves with the central bank,thenincreaseloanstobusinessesandconsumerswhichboosteconomicactivityinanon-inflationaryway. Nicolaas Smith Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.