Free Territory of Trieste
The Free Territory of Trieste was an independent territory situated in Central Europe between northern Italy and Yugoslavia, facing the north part of the Adriatic Sea, under direct responsibility of the United Nations Security Council in the aftermath of World War II. The Free Territory was established on 10 February 1947 by a protocol of the Treaty of Peace with Italy in order to accommodate an ethnically and culturally mixed population in a neutral independent country; the intention was to cool down territorial claims between Italy and Yugoslavia, due to its strategic importance for trade with Central Europe. It came into existence on 15 September 1947, its administration was divided into two areas: one being the port city of Trieste with a narrow coastal strip to the north west. The Free Territory was de facto given to its two neighbours in 1954 and this was formalized much by the bilateral Treaty of Osimo of 1975, ratified in 1977; the Free Territory of Trieste comprised an area of 738 square kilometres around the Bay of Trieste from Duino/Devin in the north to Novigrad/Cittanova in the south, had 330,000 inhabitants.
It bordered the new Italian Republic to the north, the Socialist Federal Republic of Yugoslavia to the south and to the east. The rivers of the territory included the Rižana/Risano, the Dragonja/Dragogna, the Timavo/Timava, the Val Rosandra/Glinščica, the Mirna/Quieto; the Territory's highest point was at Monte Cocusso/Kokoš. Its most extreme points were near Medeazza/Medjavas at 45° 48’ in the north, at Tarski Zaliv / Porto Quieto at 45° 18’ in the south, Savudrija / Punta Salvore at 13° 29’ in the west, Gročana/Grozzana at 13° 55’ in the east. Since 1382, Trieste had been part of the Habsburg Monarchy, whilst Istria had been divided for centuries between the Habsburg Monarchy and the Republic of Venice; the population of the territory has been diverse and mixed, with different and changing ethnic majorities in different parts of the territory. Italian-speakers have been predominant in most urban settlements and in the coast, with strong minorities of Slovenes and Croats in Trieste district, where Slovenes represented a third of the population by the end of World War I.
The countryside of the territory was Slovene or Croatian in the southernmost portion of the area. There was a smaller number of Istro-Romanians, Albanians and a strong Triestine Jewish community. An example of this ethnic mix is the Triestine dialect, its base is derived from Venetian, influenced by a Friulian substrate due to the existence of the now defunct Tergestine dialect, related to Friulian. Some of the Triestine words are of German and Slovene origin and came from other languages, such as Greek; the variations of spoken Slovenian and Serbo-Croatian in the territory were largely dialectal, sharing words with the Triestine and Istrian dialects. In the southernmost part of the territory the Croatian-based dialects were of the Chakavian type, while the Venetian-based Istrian is commonly used. In 1921, after World War I, Italy annexed Trieste and part of modern-day western Slovenia, establishing the border region known as the Julian March. In 1924, Italy annexed the Free State of Fiume, now the city of Rijeka in Croatia.
During the 1920s and 1930s, the Slavic population was subjected to forced Italianization and discrimination under the Italian fascist regime. They were exposed to state violence by fascist party mobs, including the burning of the Slovene National Hall in Trieste on 13 July 1920, in other towns and villages. A few Slovenes and Croats consequentially emigrated to Yugoslavia, while some joined the TIGR resistance organization, whose methods included more than 100 acts of terrorism against the exponents of the Italian authorities in the region. Italy fought with the Axis powers in World War II; when the Fascist regime collapsed in 1943 and Italy capitulated, the territory was occupied by German forces who created the Operational Zone of the Adriatic Littoral, the capital of, Trieste. The Yugoslav 4th Army and the Slovenian 9th Corps entered Trieste on 1 May 1945, after a battle in the town of Opicina; the 2nd Division arrived on the next day and forced the surrender of the 2,000 German Army troops holding out in Trieste, who warily had refused to capitulate to partisan troops, fearing they would be executed by them.
An uneasy truce developed between New Zealand and Yugoslav troops occupying the area until British Gen. Sir William Morgan proposed a partition of the territory and the removal of Yugoslav troops from the area occupied by the Allies. Yugoslav leader Josip Broz Tito agreed in principle on 23 May, as the British XIII Corps was moving forward to the proposed demarcation line. An agreement was signed in Duino on 10 June; the Yugoslav troops withdrew by 12 June 1945. In January 1947, the United Nations Security Council approved Resolution 16 under Article 24 of its charter calling for the creation of a free state in Trieste and the region surrounding it. A permanent statute codifying its provisions was to become recognized under international law upon the appointment of an international governor approved by the Quatripartite Powers. On 15 September 1947, the peace treaty between t
Italian Social Republic
The Italian Social Republic and known as the Republic of Salò, was a German puppet state with limited recognition, created during the part of World War II, existing from the beginning of German occupation of Italy in September 1943 until the surrender of German troops in Italy in May 1945. The Italian Social Republic was the second and last incarnation of the Italian Fascist state and was led by Duce Benito Mussolini and his reformed anti-monarchist Republican Fascist Party which tried to modernise and revise fascist doctrine into a more moderate and sophisticated direction; the state declared Rome its capital, but was de facto centered on Salò, a small town on Lake Garda, near Brescia, where Mussolini and the Ministry of Foreign Affairs were headquartered. The Italian Social Republic exercised nominal sovereignty in Northern and Central Italy, but was dependent on German troops to maintain control. In July 1943, after the Allies had pushed Italy out of North Africa and subsequently invaded Sicily, the Grand Fascist Council—with the support of King Victor Emmanuel III—overthrew and arrested Mussolini.
The new government began secret peace negotiations with the Allied powers. When the Armistice of Cassibile was announced 8 September, Germany was prepared and intervened. Germany seized control of the northern half of Italy, freed Mussolini and brought him to the German-occupied area to establish a satellite regime; the Italian Social Republic was proclaimed on 23 September 1943. Although the RSI claimed sovereignty over most of Italian territory, its de facto jurisdiction only extended to a vastly reduced portion of Italy; the RSI received diplomatic recognition from only Germany and their puppet states. Around 25 April 1945–nineteen months after the RSI's founding–it all but collapsed. In Italy, this day is known as Liberation Day. On this day a general partisan uprising, alongside the efforts of Allied forces during their final offensive in Italy, managed to oust the Germans from Italy entirely. On 27 April, partisans caught Mussolini, his mistress, several RSI ministers and several other Italian Fascists while they were attempting to flee.
On 28 April, the partisans shot most of the other captives. The RSI Minister of Defense Rodolfo Graziani surrendered what was left of the Italian Social Republic on 1 May, one day after the German forces in Italy capitulated, putting a definitive end to the Italian Social Republic. On 24 July 1943, after the Allied landings in Sicily on a motion by Dino Grandi the Grand Fascist Council voted a motion of no confidence in Mussolini. Mussolini's position had been undermined by a series of military defeats from the start of Italy's entry into the war in June 1940, including the bombing of Rome, the loss of the African colonies and the Allied invasions of Sicily and the southern Italian Peninsula; the next day, King Victor Emmanuel III ordered him arrested. By this time, the monarchy, a number of Fascist government members and the general Italian population had grown tired of the futile war effort which had driven Italy into subordination and subjugation under Nazi Germany; the failed war effort left Mussolini humiliated at home and abroad as a "sawdust Caesar".
Under Marshal Pietro Badoglio, the new government began secret negotiations with the Allied powers and made preparations for the capitulation of Italy. These surrender talks implied a commitment from Badoglio not only to leave the Axis alliance, but to have Italy declare war on Germany. While the Germans formally recognised the new status quo in Italian politics, they intervened by sending some of the best units of the Wehrmacht to Italy; this was done both to resist new Allied advances and to face the predictably imminent defection of Italy. While Badoglio continued to swear loyalty to Germany and the Axis powers, Italian government emissaries prepared to sign an armistice at Cassibile in Allied-occupied Sicily, finalized on 3 September. On 8 September, Badoglio announced Italy's armistice with the Allies. German Führer Adolf Hitler and his staff, long aware of the negotiations, acted by ordering German troops to seize control of Northern and Central Italy; the Germans disarmed the Italian troops and took over all of the Italian Army's materials and equipment.
The Germans dissolved the Italian occupation zone in southeastern France and forced Italian troops stationed there to leave. The Italian armed forces were not given clear orders to resist the Germans following the armistice and so resistance to the German takeover was scattered and of little effect. King Victor Emmanuel made no effort to rally resistance to the Germans, instead fleeing with his retinue to the safety of the Allied lines; the new Italian government had moved Mussolini from place to place while he was in captivity in an attempt to foil any attempts at rescue. Despite this, the Germans pinpointed Mussolini at the Campo Imperatore Hotel at Gran Sasso. On 12 September, Mussolini was liberated by the Germans in Operation Eiche in the mountains of Abruzzo, while the Italian carabinieri were placed under orders to not fire their weapons at the raiders, rendering them defenseless. After being liberated, Mussolini was flown to Bavaria. Gathering what support he still had among the Italian population, his liberation made it possible for a new German-dependent Fascist Italian state to be created.
Three days following his rescue in the Gran Sasso raid, Mussolini was taken to
Istituto Poligrafico e Zecca dello Stato
The Italian Istituto Poligrafico e Zecca dello Stato, founded in 1928, is situated at the via Salaria 691 in Rome. As well as producing coins and postage stamps for Italy, it serves the micro-states of the Vatican City, San Marino, the Sovereign Military Order of Malta, it publishes books under the imprint Libreria dello Stato. The O. C. V and traditional productions factory, the multimedial production institute and the Mint are located in the capital. Another factory is located in Apulia. Banknotes are produced by Bank of Italy. In 2002, IPZS became a public limited company with the Italian Ministry of Economy and Finance as sole shareholder. On 27 December 1911, the Italian mint was inaugurated by king Victor Emmanuel III in the seat located in via Principe Umberto, on the Esquiline, but in 1907, Victor Emmanuel founded the Scuola dell'Arte della Medaglia in the old location of the mint. The school trained new artists about carving and modelling techniques and its attendants would manufacture real coins: it is still nowadays an unique example in the world of didactic and creative formation inside a mint.
In 1928, the Istituto Poligrafico dello Stato was established and in 1978 acquired the mint section, under president Rosario Lanza, becoming the Istituto Poligrafico e Zecca dello Stato. In 1982, it became the first mint to manufacture bi-metallic coins through a patented process. Since October 2002, the IPSZ is a società per azioni with the Italian Ministry of Economy and Finance as sole shareholder. IPZS prints official state publications like the Gazzetta Ufficiale, state marks and seals, postal tamps and manufactures coins. IPZS designs anti-counterfeiting and security systems for identity cards, electronic passports, driving licenses and residence permits, it manages institutional sites and databases. Since 2001, the CNAC has been established in the Mint and it analyses counterfeit coins delivered by obliged subjects in Italy, San Marino and Vatican City. According to the Italian law n° 27 of 24 March 2012, CNAC has additional tasks and functions which derive from the application of the EU Regulation 1210/2010.
CNAC receives coins not suitable for circulation, carries out tests using specific instruments, does the annual controls according to the article 6 of the aforesaid regulation and trains the personnel involved in the authentication process. It is a member of the European group of sophistication of the OLAF, headed by OLAF/ETSC and formed by 27 European CNACs, Europol and the European Central Bank. Banca d'Italia Italian Lira Italian passport Postage stamps and postal history of Italy Istituto Poligrafico e Zecca dello Stato
United States dollar
The United States dollar is the official currency of the United States and its territories per the United States Constitution since 1792. In practice, the dollar is divided into 100 smaller cent units, but is divided into 1000 mills for accounting; the circulating paper money consists of Federal Reserve Notes that are denominated in United States dollars. Since the suspension in 1971 of convertibility of paper U. S. currency into any precious metal, the U. S. dollar is, de facto, fiat money. As it is the most used in international transactions, the U. S. dollar is the world's primary reserve currency. Several countries use it as their official currency, in many others it is the de facto currency. Besides the United States, it is used as the sole currency in two British Overseas Territories in the Caribbean: the British Virgin Islands and Turks and Caicos Islands. A few countries use the Federal Reserve Notes for paper money, while still minting their own coins, or accept U. S. dollar coins. As of June 27, 2018, there are $1.67 trillion in circulation, of which $1.62 trillion is in Federal Reserve notes.
Article I, Section 8 of the U. S. Constitution provides that the Congress has the power "To coin money". Laws implementing this power are codified at 31 U. S. C. § 5112. Section 5112 prescribes the forms; these coins are both designated in Section 5112 as "legal tender" in payment of debts. The Sacagawea dollar is one example of the copper alloy dollar; the pure silver dollar is known as the American Silver Eagle. Section 5112 provides for the minting and issuance of other coins, which have values ranging from one cent to 100 dollars; these other coins are more described in Coins of the United States dollar. The Constitution provides that "a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time"; that provision of the Constitution is made specific by Section 331 of Title 31 of the United States Code. The sums of money reported in the "Statements" are being expressed in U. S. dollars. The U. S. dollar may therefore be described as the unit of account of the United States.
The word "dollar" is one of the words in the first paragraph of Section 9 of Article I of the Constitution. There, "dollars" is a reference to the Spanish milled dollar, a coin that had a monetary value of 8 Spanish units of currency, or reales. In 1792 the U. S. Congress passed a Coinage Act. Section 9 of that act authorized the production of various coins, including "DOLLARS OR UNITS—each to be of the value of a Spanish milled dollar as the same is now current, to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver". Section 20 of the act provided, "That the money of account of the United States shall be expressed in dollars, or units... and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regulation". In other words, this act designated the United States dollar as the unit of currency of the United States. Unlike the Spanish milled dollar, the U.
S. dollar is based upon a decimal system of values. In addition to the dollar the coinage act established monetary units of mill or one-thousandth of a dollar, cent or one-hundredth of a dollar, dime or one-tenth of a dollar, eagle or ten dollars, with prescribed weights and composition of gold, silver, or copper for each, it was proposed in the mid-1800s that one hundred dollars be known as a union, but no union coins were struck and only patterns for the $50 half union exist. However, only cents are in everyday use as divisions of the dollar. XX9 per gallon, e.g. $3.599, more written as $3.599⁄10. When issued in circulating form, denominations equal to or less than a dollar are emitted as U. S. coins while denominations equal to or greater than a dollar are emitted as Federal Reserve notes. Both one-dollar coins and notes are produced today, although the note form is more common. In the past, "paper money" was issued in denominations less than a dollar and gold coins were issued for circulation up to the value of $20.
The term eagle was used in the Coinage Act of 1792 for the denomination of ten dollars, subsequently was used in naming gold coins. Paper currency less than one dollar in denomination, known as "fractional currency", was sometimes pejoratively referred to as "shinplasters". In 1854, James Guthrie Secretary of the Treasury, proposed creating $100, $50 and $25 gold coins, which were referred to as a "Union", "Half Union", "Quarter Union", thus implying a denomination of 1 Union = $100. Today, USD notes are made from cotton fiber paper, unlike most common paper, made of wood fiber. U. S. coins are produced by the United States Mint. U. S. dollar banknotes are printed by the Bureau of Engraving and Printing and, since 1914, have been issued by t
Kingdom of Italy (Napoleonic)
The Kingdom of Italy was a kingdom in Northern Italy in personal union with France under Napoleon I. It was influenced by revolutionary France and ended with his defeat and fall, its governance was conducted by his step-son and viceroy Eugène de Beauharnais. The Kingdom of Italy was born on March 17, 1805, when the Italian Republic, whose president was Napoleon Bonaparte, became the Kingdom of Italy, with the same man as King of Italy, the 24-year-old Eugène de Beauharnais his viceroy. Napoleon I was crowned at the Duomo di Milano, Milan with the Iron Crown of Lombardy, his title was "Emperor of the French and King of Italy", showing the importance of this Italian Kingdom for him. Though the republican Constitution was never formally abolished, a series of Constitutional Statutes altered it; the first one was proclaimed two days after the birth of the kingdom, on March 19, when the Consulta declared Napoleon as king and established that one of his natural or adopted sons would succeed him once the Napoleonic Wars were over, once separated the two thrones were to remain separate.
The second one, dating from March 29, regulated the regency, the Great Officials of the kingdom, the oaths. The most important was the third, proclaimed on June 5, being the real constitution of the kingdom: Napoleon was the head of State, had the full powers of government; the Consulta, Legislative Council, Speakers, were all merged in a Council of State, whose opinions became only optional and not binding for the king. The Legislative Body, the old parliament, remained in theory, but it never summoned after 1805; the fourth Statute, decided on February 16, 1806, indicated Beauharnais as the heir to the throne. The fifth and the sixth Statutes, on March 21, 1808, separated the Consulta from the Council of State, renamed it the Senate, with the duty of informing the king about the wishes of the most important subjects; the seventh Statute, on September 21, created a new nobility of dukes and barons. In 1812, a Court of Accounts was added; the government had seven ministers: Minister of War was at first General Augusto Caffarelli General Giuseppe Danna for a year, from 1811, General Achille Fontanelli.
The Kingdom consisted of the territories of the Italian Republic: former Duchy of Milan, Duchy of Mantua, Duchy of Modena, the western part of the Republic of Venice, part of the Papal States in Romagna, the Department of Agogna with Novara as its capital. After the defeat of the Third Coalition and the consequent Treaty of Pressburg, on May 1, 1806, the Kingdom was given by Austria the eastern and remaining part of the Venetian territories, including Istria and Dalmatia down to Kotor if it had to give Massa and Carrara to Elisa Bonaparte's Principality of Lucca and Piombino; the Duchy of Guastalla was annexed on May 24. With the Convention of Fontainebleau with Austria of October 10, 1807, Italy ceded Monfalcone to Austria and gained Gradisca, putting the new border on the Isonzo River; the conquered Republic of Ragusa was annexed in spring 1808 by General Auguste de Marmont. On April 2, 1808, following the dissolution of the Papal States, the Kingdom annexed the present-day Marches. At its maximum extent, the Kingdom was composed by 2,155 communes.
The final arrangement arrived after the new defeat of Austria: Emperor Napoleon and King Maximilian I Joseph of Bavaria signed the Treaty of Paris on February 28, 1810, deciding an exchange of territories involving Italy too. On rewards in Germany, Bavaria ceded southern Tirol to the Kingdom of Italy, which in its turn ceded Istria and Dalmatia to France, incorporating the Adriatic territories into newly created the French Illyrian Provinces. Small changes to the borders between Italy and France in Garfagnana and Friuli came in act on August 5, 1811. In practice, the Kingdom was a dependency of the French Empire; the Kingdom served as a theater in Napoleon's operations against Austria during the wars of the various coalitions. Trading with the United Kingdom was forbidden; the kingdom was given a new national currency, replacing the local coins circulating in the country: the Italian lira, of the same size and metal of the French franc. Mintage being decided by Napoleon with an imperial decree on March 21, 1806, the production of the new coins began in 1807.
The monetary unit was the silver lira, 5 grams heavy. There were multiples of £2 and £5, precious coins of £20 and £40; the lira was divided in 100 cents, there were coins of 1 cent, 3 cents, 10 cents, but following the tradition, there was a division in 20 soldi, with coins of 1 soldo, 5 soldi, 10 soldi, 15 soldi. The army of the kingdom, inserted into the Grande Armée, took part in all of Napoleon's cam
The pound sterling known as the pound and less referred to as sterling, is the official currency of the United Kingdom, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, Tristan da Cunha. It is subdivided into 100 pence. A number of nations that do not use sterling have currencies called the pound. Sterling is the third most-traded currency in the foreign exchange market, after the United States dollar, the euro. Together with those two currencies and the Chinese yuan, it forms the basket of currencies which calculate the value of IMF special drawing rights. Sterling is the third most-held reserve currency in global reserves; the British Crown dependencies of Guernsey and the Isle of Man produce their own local issues of sterling which are considered equivalent to UK sterling in their respective regions. The pound sterling is used in Gibraltar, the Falkland Islands, Saint Helena and Ascension Island in Saint Helena and Tristan da Cunha; the Bank of England is the central bank for the pound sterling, issuing its own coins and banknotes, regulating issuance of banknotes by private banks in Scotland and Northern Ireland.
Banknotes issued by other jurisdictions are not regulated by the Bank of England. The full official name pound sterling, is used in formal contexts and when it is necessary to distinguish the United Kingdom currency from other currencies with the same name. Otherwise the term pound is used; the currency name is sometimes abbreviated to just sterling in the wholesale financial markets, but not when referring to specific amounts. The abbreviations "ster." and "stg." are sometimes used. The term "British pound" is sometimes incorrectly used in less formal contexts, it is not an official name of the currency; the exchange rate of the pound sterling against the US dollar is referred to as "cable" in the wholesale foreign exchange markets. The origins of this term are attributed to the fact that in the 1800s, the GBP/USD exchange rate was transmitted via transatlantic cable. Forex traders of GBP/USD are sometimes referred to as "cable dealers". GBP/USD is now the only currency pair with its own name in the foreign exchange markets, after IEP/USD, known as "wire" in the forward FX markets, no longer exists after the Irish Pound was replaced by the euro in 1999.
There is apparent convergence of opinion regarding the origin of the term "pound sterling", toward its derivation from the name of a small Norman silver coin, away from its association with Easterlings or other etymologies. Hence, the Oxford English Dictionary state that the "most plausible" etymology is derivation from the Old English steorra for "star" with the added diminutive suffix "-ling", to mean "little star" and to refer to a silver penny of the English Normans; as another established source notes, the compound expression was derived: However, the perceived narrow window of the issuance of this coin, the fact that coin designs changed in the period in question, led Philip Grierson to reject this in favour of a more complex theory. Another argument that the Hanseatic League was the origin for both the origin of its definition and manufacture, in its name is that the German name for the Baltic is "Ost See", or "East Sea", from this the Baltic merchants were called "Osterlings", or "Easterlings".
In 1260, Henry III granted them a charter of protection and land for their Kontor, the Steelyard of London, which by the 1340s was called "Easterlings Hall", or Esterlingeshalle. Because the League's money was not debased like that of England, English traders stipulated to be paid in pounds of the "Easterlings", contracted to "'sterling". For further discussion of the etymology of "sterling", see sterling silver; the currency sign for the pound is £, written with a single cross-bar, though a version with a double cross-bar is sometimes seen. This symbol derives from medieval Latin documents; the ISO 4217 currency code is GBP, formed from "GB", the ISO 3166-1 alpha-2 code for the United Kingdom, the first letter of "pound". It does not stand for "Great Britain Pound" or "Great British Pound"; the abbreviation "UKP" is used but this is non-standard because the ISO 3166 country code for the United Kingdom is GB. The Crown dependencies use their own codes: GGP, JEP and IMP. Stocks are traded in pence, so traders may refer to pence sterling, GBX, when listing stock prices.
A common slang term for the pound sterling or pound is quid, singular and plural, except in the common phrase "quids in!". The term may have come via Italian immigrants from "scudo", the name for a number of coins used in Italy until the 19th century.
A central bank, reserve bank, or monetary authority is the institution that manages the currency, money supply, interest rates of a state or formal monetary union, oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, generally controls the printing/coining of the national currency, which serves as the state's legal tender. A central bank acts as a lender of last resort to the banking sector during times of financial crisis. Most central banks have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, to discourage reckless or fraudulent behavior by member banks. Central banks in most developed nations are institutionally independent from political interference. Still, limited control by the executive and legislative bodies exists. Functions of a central bank may include: implementing monetary policies. Setting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms controlling the nation's entire money supply the Government's banker and the bankers' bank managing the country's foreign exchange and gold reserves and the Government bonds regulating and supervising the banking industry Central banks implement a country's chosen monetary policy.
At the most basic level, monetary policy involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. When a country has its own national currency, this involves the issue of some form of standardized currency, a form of promissory note: a promise to exchange the note for "money" under certain circumstances; this was a promise to exchange the money for precious metals in some fixed amount. Now, when many currencies are fiat money, the "promise to pay" consists of the promise to accept that currency to pay for taxes. A central bank may use another country's currency either directly in a currency union, or indirectly on a currency board. In the latter case, exemplified by the Bulgarian National Bank, Hong Kong and Latvia, the local currency is backed at a fixed rate by the central bank's holdings of a foreign currency. Similar to commercial banks, central banks incur liabilities. Central banks create money by issuing interest-free currency notes and selling them to the public in exchange for interest-bearing assets such as government bonds.
When a central bank wishes to purchase more bonds than their respective national governments make available, they may purchase private bonds or assets denominated in foreign currencies. The European Central Bank remits its interest income to the central banks of the member countries of the European Union; the US Federal Reserve remits all its profits to the U. S. Treasury; this income, derived from the power to issue currency, is referred to as seigniorage, belongs to the national government. The state-sanctioned power to create currency is called the Right of Issuance. Throughout history there have been disagreements over this power, since whoever controls the creation of currency controls the seigniorage income; the expression "monetary policy" may refer more narrowly to the interest-rate targets and other active measures undertaken by the monetary authority. Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. Unemployment beyond frictional unemployment is classified as unintended unemployment.
For example, structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Macroeconomic policy aims to reduce unintended unemployment. Keynes labeled any jobs that would be created by a rise in wage-goods as involuntary unemployment: Men are involuntarily unemployed if, in the event of a small rise in the price of wage-goods to the money-wage, both the aggregate supply of labour willing to work for the current money-wage and the aggregate demand for it at that wage would be greater than the existing volume of employment.—John Maynard Keynes, The General Theory of Employment and Money p11 Inflation is defined either as the devaluation of a currency or equivalently the rise of prices relative to a currency. Since inflation lowers real wages, Keynesians view inflation as the solution to involuntary unemployment. However, "unanticipated" inflation leads to lender losses as the real interest rate will be lower than expected.
Thus, Keynesian monetary policy aims for a steady rate of inflation. A publication from the Austrian School, The Case Against the Fed, argues that the efforts of the central banks to control inflation have been counterproductive. Economic growth can be enhanced by investment such as more or better machinery. A low interest rate implies that firms can borrow money to invest in their capital stock and pay less interest for it. Lowering the interest is therefore considered to encourage economic growth and is used to alleviate times of low economic growth. On the other hand, raising the interest rate is used in times of high economic growth as a contra-cyclical device to keep the economy from overheating and avoid market bubbles. Further goals of monetary policy are stability of interest rates, of the financial market, of the foreign exchange market. Goals cannot be separated fr