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• Messageboard • Alte Public Foren • A high-ranking government official said
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tqwpi0qpfd
Leutnant
916 Posts
registered: 19.11.2013
03.02.2014, 07:30 email offline quote 
??Redenomination is a risk-free revolution,?? remarked a high-level official at the Bank of Korea (BOK), meaning that the advantages to such a move are many, with almost no ill effects.
That is why the BOK is getting behind redenomination. As for the biggest advantages of redenomination that downgrades W1,nike requin,000 into W1,Pull Abercrombie, the BOK puts forward points such as convenient financial transactions, simple accounting and an improved image of the Won currency. The current image of the Won currency is one of an inferior cousin, because one dollar reaches the value of W1,144 -- four digits.


The assertion made by the BOK is that although the advantages of redenomination cannot be calculated in numbers, it will have a substantial intangible economic effect. The convenience of omitting three zeros can be regarded as trivial, but it cannot be ignored when it comes to a matter that influences all the people of a country for tens of years.
There is, however, strong opposition as well. ??Redenomination is usually carried out by countries that have failed to control its economy, causing dangerously high inflation and people to bring trunk-fulls of money with them,woolrich roma,?? remarked Park Jong-kyu at the Korea Institute of Finance??s macroeconomics team, adding ??converting 1,000 into 1 does not mean an instant uplifting of the national image of Korea.??
The opposition points out that the positive effects of redenomination cannot easily be counted in numbers and that it will take a long time to realize benefits, but on the other hand, the negative influences such as an increase in related expenses will take effect in the short term.
The total expenditure of W2.6 trillion will be needed immediately for the production of new bank notes, a computer system, auto teller machines and vending machines. Adding to this, as merchandisers may tend to ignore the fractions to mark prices,woolrich parka donna, prices could increase.
For instance, if a product currently at the price of W950 should be converted into W0.95 by the 1000 to 1 redenomination,moncler prezzi, merchandisers can display the prices at W1. With the high possibility of relatively inexpensive commodities causing prices to skyrocket because of the above problem,woolrich donna, the livelihood of people could be negative affected.
A more serious problem is the sense of insecurity and resistance. The public feels particularly insecure because they remember the time of the currency reforms in 1953 and 1962, when they could exchange old currency for new currency only after reporting and depositing it to banks and even withdraw a limited amount of their deposits.
Although the government and the Bank of Korea is stressing that in case of redenomination, they would exchange old currency in favor of the new currency without asking identities,Soldes Abercrombie, and at any time and without limits, the feeling of insecurity that the rich may feel might not be mitigated.
A high-ranking government official said, ??There are still many rich people who are reluctant to reveal how much money they have even if the government says that it would exchange the money without asking where it comes from. Thus, I do not see any reasons to make them go underground by carrying out redenomination.??
Some argue against redenomination saying that it would make it convenient to give and take bribes. Some time ago, Kim Tae-dong, a member of the Monetary Policy Committee, also expressed his opposition to redenomination saying, ??With redenomination, bribery can occur using boxes instead of trucks.??
Another concern is that it could cause a sense of depravity as a worker who earns W2 million a month comes to receive W2000 hwan. All this means that redenomination would cause inflation and shrink domestic consumption even more.
In regards to concerns over possible inflation,outlet woolrich, the BOK explains differently that there would be no big inflation problem, citing that in 2002 when the European Union introduced the euro, the change of currency caused only 0.2 percent of inflation. It argues that it will introduce a supplementary currency unit such as jeon under the new currency unit. In addition, unnecessary changes will not be created when people pay for goods because the ratio will be set at 1,000 to 1, not a complicated one like 1,spaccio moncler,936 to 1.
The central bank claims, in connection with concerns over possibly increasing bribery cases,nfl jerseys wholesale, that bribery is a problem that should be tackled through an anti-corruption campaign across the society, not an issue to be linked to a redomination.
According to the BOK, the redomination will cost W2.6 trillion, including costs to replace automated teller machines. But the costs will be recovered in three years, as the introduction of large denomination bills will save W600 billion a year because the expenses to issue checks will be curtailed.
The BOK argues that expectedly,Veste Abercrombie, the redomination will boost the economy, considering that money-related machines like vending machines have to be replaced. Small-sized business people, however,outlet woolrich bologna, will bear additional burden because they have to replace those machines.
(Lee Ji-hun, jhl@chosun.com)????????


the skin tender and the most

President an Enlightened Despot at Best, Critics Say

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The consumer confidence index is based on a survey of 2,000 urban households across the country and gauges how people feel about the upcoming six months in terms of business conditions, household living standards and consumption expenditure as compared to now.
fc2qz3x2og
Gefreiter
16 Posts
registered: 14.01.2014
03.02.2014, 07:34 email offline quote 
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