Monetary Asset

Monetary Asset

An asset held in cash or cash equivalent. That is, monetary assets are assets that can easily be liquidated. Examples include stocks and savings accounts.
References in periodicals archive ?
Using high-powered money as the monetary asset, the welfare loss of 10 percent inflation is estimated to be about 0.
Pointing to the twin role of an industrial and monetary asset, silver tends to be more volatile than gold and this must be taken into consideration when investing in this product, said Unni.
Underlying Divisia monetary aggregates is the concept of the user cost of a monetary asset, which is a function of the interest forgone by holding a specific asset rather than an alternative asset that does not provide any monetary services and earns a higher rate of return (referred to as the "benchmark rate").
Ahmed bin Sulayem, Executive Chairman, DMCC said: "This event comes during an important period, a time when gold has reached record valuations and has cemented its position as a safe financial and monetary asset in all of its different forms, from bullion bars and coins bought by investors and Central Banks, to jewellery.
Indeed, this could be the beginnings of the Eurozone central banks buying gold as a monetary asset in order to protect the euro and hedge their exposure to the other reserve currencies such as the pound and most especially today's global reserve currency - the U.
The rediscovery of gold's properties as both a currency and a monetary asset have been brought into sharp focus.
While textbooks may view gold as 'old money', markets use it as an alternative monetary asset.
where x is the weight of a non monetary asset i in the wealth structure in the current period t; N is the total of non monetary assets from the selection universe; c are the costs associated with the buy and hold non monetary assets; L are the monetary and quasi monetary assets with a high degree of liquidity; Y are the incomes from labor and capital obtained in the current period and / or accumulated from previous periods; t] are the returns of non monetary wealth components consisting of monetary flows generated by their utilization and by their prices variations; R are their associated risks and * indicates the anticipated values of the involved variables formed in the current period for l future periods.
Indeed it is hard to see why there should be any need for a specific monetary asset, since everybody's IOUs can be used for exchange purposes.
Furthermore, although the Divisia approach is eminently appropriate for conventional monetary asset components such as M2 assets, the application of the Divisia index number methodology to the missing M2 episode of the early 1990s is nevertheless potentially problematic.
1992) is followed by adopting the philosophy that most financial innovations are nonneutral with regard to their effects on the liquidity and productivity of different assets, and thus the Divisia monetary aggregates do not adequately adjust for the effects of financial innovations, especially those related to technological progress and the introduction of new monetary asset types.
The story of the first quarter of 1999 was of continued growth in jewellery demand, coupled with a broader appreciation worldwide for the role of gold as a monetary asset.