The monetary system – An important guide to how money works and a new model for financial health

The recent global financial crisis raised questions on how to balance actions based on short-term decision making against the uncertainty of impending long-term change in the economic environment. The Monetary System outlines the conceptual basis required to build a new and more stable financial system, paving the way for a fiscal policy model that places emphasis on rotation rather than on inventories of financial instruments that would result in improved tax policies.

In this important text, Jean-François Serval and Jean-Pascal Tranié explore the historical context of money and reveal how transactions work in today’s global economic environment. The Monetary System is a compelling work that answers a number of key questions about our current financial situation: What underpinning of democratic society facilitated a transition to the economic realities of today? What were the major drivers that characterized the current economic impasse? How can one forecast future trends? What can be done to “fix” the present economic system?

Based on exhaustive research, the book offers an overview of the present economic situation throughout the world that is defined by slow growth, rising debts, and low inflation. The authors envision a healthy economic future and put forward a new model for the global economy.


The Monetary System is a comprehensive resource that gives banking professionals, as well as others interested in the topic, keen insight into our current economic situation and offers an understanding of the factors that can help shape a sound financial future.

The Monetary System offers a clear understanding of how the world financial system works and addresses a number of key issues facing today’s society. Because of increased life expectancy and longer retirement periods the new social pattern we live in requires the development of new money policies by governments. This book outlines the conceptual basis required to build a new and more stable financial system, paving the way for new fiscal policy.

Jean-François Serval and Jean-Pascal Tranié provide an in-depth analysis of the definition of money and show how money operates both in a historical context and within complex modern day transactions. The authors take a courageous and controversial stance in presenting the con­temporary implementation of money as a social contract, governed by laws and regulations set by our culture. Serval and Tranié present an analytic approach that distinguishes those financial instruments that are freely transferable and those that can be classified as securitization and CDS.

The book suggests a new model that aggregates the M5 category encompassing all financial instruments including cash from the Central Bank. In essence, all receivables that are in counterparty relationships are recorded as debts on balance sheets, the M6 entry being the total of balance sheets from where the data has to be collected to compare them with revenues. By employing derivatives of M5 and M6, the book covers all underlying collateral classes, thus allowing a type of comprehensive economic modeling that is innovative in its approach.

Additionally, Serval and Tranié reveal the social role of monetary contracts not only because they are grounding exchanges as it has always been in the past but because it is a sampling tool for redistribution between actors includ­ing “sectors” through taxation, inflation, and deflation and finally between generations.

The Monetary System offers bankers and anyone else concerned with today’s global economic condition an understanding of the key distinguishing factors that can help shape a financially stable future.

Un guide essentiel pour comprendre comment la monnaie circule et la proposition d’un modèle nouveau servant à créer un système financier mieux stabilisé que l’actuel.

La récente crise financière pose la question de savoir comment compenser l’effet de comportements « court-termistes » qui mettent en cause la satisfaction des besoins à long terme  de transformation  des infrastructures qui sont nécessaires au développement des économies.

« Le Système Monétaire » pose les bases conceptuelles nécessaires à la construction d’un système plus stable que celui existant, ouvrant ainsi la voie à la construction d’un modèle de politique économique qui donne une place centrale à la notion de rotation des instruments monétaires  qui conduira mécaniquement à des  politiques économiques plus adaptée– plutôt  qu’a une approche statique basée sur celle de leur inventaire

Dans cet important travail, Jean-François Serval et Jean-Pascal Tranié explorent l’environnement historique  de la monnaie et décrivent comment elle opère dans son environnement globalisé d’aujourd’hui. Le « Système Monétaire » constitue une percée qui répond à des questions fondamentales sur notre situation financière contemporaine : Qu’est-ce qui a fait que les données de nos sociétés démocratiques  ont entrainé une création monétaire incontrôlée ?  Quelles ont été les facteurs principaux de cette évolution et comment expliquent  t- on  l’impasse actuelle ? Comment peut-on prévoir l’évolution future ?  Comment peut-on « réparer » le système actuel ?

Grâce à des recherches approfondies, l’ouvrage propose une vision globale de la situation actuelle à travers le monde qui est caractérisée par une croissance économique ralentie, la croissance des dettes et peu d’inflation. Les auteurs proposent un modèle organisationnel nouveau  susceptible de s’appliquer à l’ensemble de l’économie et d’en permettre l’assainissement.

The « Système Monétaire » fournit au lecteur, banquier, réviseur, conseiller financier, ou législateur ainsi qu’à tous ceux qui s’intéressent à ce thème une analyse profonde de la situation économique actuelle et propose une vision des facteurs de causalité susceptible d’aider à la construction  pour l’avenir d’un dispositif financier plus solide que le système actuel.

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