from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. The quality of being convertible
- n. The quality of a currency of being exchangeable for gold or other currencies
from the GNU version of the Collaborative International Dictionary of English
- n. The condition or quality of being convertible; capability of being exchanged; convertibleness.
from The Century Dictionary and Cyclopedia
- n. The condition or quality of being convertible.
- n. Capability of being applied or turned to a new use. The quality of being interchangeable: as, the convertibility of certain letters. In logic, capability of being transformed by conversion.
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- n. the quality of being exchangeable (especially the ability to convert a currency into gold or other currencies without restriction)
Sorry, no etymologies found.
Note that the element of convertibility is not a prerequisite; it is sufficient only to commit to the price of gold becoming the "alarm signal" for the real bills doctrine to work.
Argentina, trying to put an end to years of runaway inflation, pegged its peso to the dollar through a so-called convertibility program in 1991.
And as with Argentina's pre-2002 "convertibility" regime, which rigidly pegged the Argentine peso to the dollar, Greece is denied the one policy option that could ease its economic pain: a currency devaluation.
On the other hand, if they were to be founded on mutual trust and a real understanding of the basic principles of trade, then I believe 'convertibility' could not only be achieved, but achieved soon.
He was adamant that "convertibility" would be the cornerstone of his policy - and he kept his word when he got the job in December 1999.
Hiroshi Watanabe , who served as Japan's top financial diplomat overseeing its foreign exchange policy, said he was not entirely in favor of Japan holding yuan assets given the currency's lack of full convertibility, but added that Tokyo's purchases despite the constraint would highlight the anomaly and would send a message to Beijing to speed up its efforts to make the yuan more flexible.
Under the IMF's classification, even if Japan were to buy Chinese bonds, they would not be counted as foreign reserves, as only assets with currency convertibility qualify.
Still, he said he thinks China is moving ahead with plans for full convertibility for the yuan.
This is so because excess dollars in the financial markets, at home or abroad, would lead to redemption of the undesired dollars into gold at the statutory parity price, thus requiring the Fed to reduce the expansion of credit in order to preserve the lawful convertibility parity of the dollar-gold relationship, thereby reducing the threat of inflation.
Unrestricted convertibility of the dollar to gold at the statutory price restricts Federal Reserve creation of excess dollars and the inflation caused by Fed financing of the deficit.