The first project to be suggested for participants is that certain specific accounts common to Corporations might be produced for nations as a public service. Two such accounts are a National Balance Sheet and a National Profit and Loss Account (alternately this one may be called a Supply and Demand Account).
The National Balance Sheets, while providing important information upon national assets and liabilities, would also evidence a little considered matter in public finance. Namely, that when chartered banks issue loans in such a way that the national money supply is increased, they also thereby increase national liabilities. This is because existent money constitutes a claim upon national products and assets, is usually a nation’s greatest single liability, and understanding and regulation should be cognizant of this.
National Profit and Loss Accounts measuring aggregate personal incomes against total real and desirable consumer production, will furnish essential information about the relationship between effective public purchasing power relative to desirable and necessary demand. Public policy directed at producing equilibrium between actual supply and effective demand will thus be informed, and suggest remedial measures when required.
Initially (as of now) such important data is not available in readily understood form, as these accounts are not done (drawn up) by Governments.
Ultimately we would hope to encourage Governments to do such accounts. However, as an interim measure we hope that private entities and University faculties will undertake the doing of these accounts to both evidence their importance and demonstrate their usefulness. Such accounts it is thought will constitute an important advance in national econometrics.
Participants in The Defined Institute are invited to register their preparedness to assist and cooperate with others in this endeavor. Alternately, if Universities undertake these accounts independently, we would appreciate being provided with their work with a right to publish same on this site, so that others may learn and benefit from their endeavors.
Undergraduates may appreciate the opportunity of involvement. The prototype national accounts published on this site may provide useful ideas.
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