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Title:
CURRENCY NOTE WITH DECREASING FACE VALUES
Document Type and Number:
WIPO Patent Application WO/2005/084888
Kind Code:
A2
Inventors:
DE OLIVEIRA JUNIOR FRANCISCO V (BR)
Application Number:
PCT/IB2004/050163
Publication Date:
September 15, 2005
Filing Date:
February 27, 2004
Export Citation:
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Assignee:
DE OLIVEIRA JUNIOR FRANCISCO V (BR)
International Classes:
B24D; (IPC1-7): B24D/
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Description:
Description CURRENCY NOTE WITH DECREASING FACE VALUES Technical Field [1] This invent belongs to the field of Economics.

Background Art [2] Traditional currency notes present a fixed face value, as, for example, a currency note of US$ 100,00 will always present a nominal value of 100 dollars and a currency note of US$ 50,00 always displays a face value of 50 dollars. Those notes are printed and put in circulation by monetary authorities and they preserve, as long as they are kept circulating, their fixed nominal values.

[3] A variation of that traditional money was proposed by Silvio Gesell, a German farmer, businessman and financial theoretician from the first half of the XX"'century.

Gesell's money, known as stamped money, would have to be authenticated pe- riodically by an official stamp to keep its validity; for this operation, the owner of the money would pay a small tax.

Disclosure of Invention Technical Problem [4] The fixed nominal value of traditional currency notes imposes a traditional money circulation speed. Such speed, however, is also the speed of the circulation of goods in the economy, which generates the speed of production. When the circulation speed of a economy is reduced or slow, the entire economy of the society suffers and gross product is also reduced or smaller than it could be. When the circulation of goods and money is accelerated, the economy maximizes its efficiency and gross product reaches a higher level. The problem approached here then is the problem of accelerating money circulation and also accelerating economic growth of a given community.

Technical Solution [5] This invent is a solution to accelerate money circulation changing the way currency notes work regarding their face values. The solution is to use a currency note that loses value with time. This monetary note with decreasing face values is a currency note that presents several different values printed in its face, each one associated with respective date or period of official validity. The note values decrease with time from a initial value associated with the date the currency note was put in circulation to a final null (zero) value associated with a future date when the currency note is then invalidated forever. Between those extreme values, the note presents successive dates of validity associated with different decreasing values.

[6] Initials values and rates of devaluation (period of time and value amount) of the currency note are to be established by the monetary authority and economic the- orization. All different official values the note presents with time must be printed in the note.

Advantageous Effects [7] With the currency note with decreasing face values economic agents make money to circulate faster. As the notes loses value with time, the owner of this currency note will hurry to use it, accelerating its circulation. Instead of keeping money in their pockets, people will have to use it sooner to buy goods and services in the market.

Sellers will sell more efficiently their goods, and the entire economy will engage in a timesaving process.

[8] As goods are sold more efficiently, such efficiency is automatically transferred to the manufactures and the gross product of the economy will grow. People will become wealthier just because the money is circulating faster in their society.

[9] The credit system will also benefit from the currency note that lose value with time.

People with extra cash will put it in the banks to preserve its value at the moment of the deposit. Banks will have to lend the money as soon as possible to productive agents. The effect is that credit is facilitated and interest rates are lowered.

Description of Drawings [10] Figure 1 shows an example of currency note with decreasing face values with an initial value (1) of $ 100,00 associated with the date 01/01/2010 (2) in which it is to be put in circulation and a rate of devaluation of $ 2,00 per day. The figure also shows all different decreasing values (5) of the note associated with their respective dates of validity (6), until the note reaches a date (4) whose associated value is $ 2,00 (3) (after that the note is invalidated).

Best Mode [11] The invention is to be adopted by a society or by a monetary authority as a new kind of money (Figure 1) to be used in the economy. These currency notes can be produced and put in the circulation and, as they lose value with time, they must be pe- riodically replaced in the market by the government or other institutions. Possibly, the best way to replace this kind of money is through periodic direct sending of a small amount to each member of the society by private authorized institutions, for example, $ 400,00 bimonthly per inhabitant.

Industrial Applicability [12] Monetary authorities worldwide can adopt this currency note with decreasing face values as official money of their societies. Then, official manufactures of money can produce it in industrial scale. Banks and the financial industry will use this new currency note as the basis of their services. Customers and sellers can use this currency note with decreasing face values as standard for commercial activities.

[13] This currency note can also create an interesting field of academic research in Economic science.