Business

Via GEFIRA,

In a recent paper - The Macroeconomics of De-Cashing, Alexei Kireyev of the International Monetary Fund advises abolishing cash without having the citizens aware of the process.

First, large banknotes are to be withdrawn from circulation, next limits on cash transactions are to be imposed, then computerization of the world’s financial system and control of international cash transactions are to be enforced and, finally, private companies are to be encouraged to avoid cash transactions.

Via TimeMoney.com,

Output Gap Explained

The output gap is the difference between actual and potential economic output and is used by economists to understand the health of the economy.

Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.

The Grim Reaper has taken his scythe to the Venezuelan bolivar. The death of the bolivar is depicted in the following chart. A bolivar is worth less, and with its collapse, Venezuela is witnessing today the world’s worst inflation. 

Authored by Nick Cunningham via OilPrice.com,

Oil from Canada’s oil sands is now selling at a $27-per-barrel discount relative to WTI, the sharpest difference in more than four years.

Western Canada Select (WCS), a benchmark for oil from Alberta’s oil sands, has plunged in December, falling to just $30 per barrel at the end of this past week. WCS typically trades at a discount to WTI, reflecting the differences in quality from lighter forms of oil, as well as the extra transportation costs to move oil hundreds of miles out of Alberta.

Following last week's 'successful' launch of Cboe Bitcoin futures, CME will begin trading of their own 'more institutional' Bitcoin futures contract today.

Here are some of the differences between the products to be offered by the exchange operators.

CONTRACT UNIT

• The Cboe Bitcoin Futures Contract will use the ticker XBT and will equal one bitcoin.
• The CME Bitcoin Futures Contract will use the ticker BTC and will equal five bitcoins.

PRICING AND SETTLEMENT