Monetization
Under monetization is meant primarily the valuation in monetary units (z. B. of work performance or environmental damage ) or the conversion of values in money (eg., By sale or rental ).
etymology
The origin of the word can usually provide information about which term content was originally used. The beginning of the word “Moneta-” ( Latin monētārius , “belonging to the coin”, “coin-”) indicates questions about coins or money, the affix “-ize”, ( Latin -izāre ) is an originally Greek ending ( ancient Greek -ízein ) in the meaning "to do, to transform into". This means that monetization can be rendered as “ monetization ”, “conversion into money”, the associated verb is monetarize (“convert into money”, “make money”). The related term monetarism stands for an economic theoretical and economic policy concept in which the money supply is in the foreground of the financial analysis .
General
Values are tangible assets such as physical assets ( e.g. tangible assets such as plant , real estate , vehicles or machines ) or intangible assets (in particular goodwill , utility models , registered designs , concessions , licenses , brands , patents and similar property rights , recipes , publishing rights or trademarks ). They all represent tied up capital , because their production or acquisition required the use of equity and / or outside capital .
species
Monetization occurs when these real assets are converted into money by releasing capital , i.e. selling them. Their ability to be liquidated depends on the market liquidity ( market breadth , market tightness ). The worse this is, the more discount must be accepted when selling. Real estate is likely to be the most difficult to liquidate if its monetization can be traced back to the adaptation to a lower space requirement ( commercial space , living space ), outsourcing or the release of capital for reinvestment . Monetization also takes place in the event of a disinvestment .
Are government bonds by the relevant central banks bought , so herein lies a monetization of public debt . In particular, the Eurosystem's controversial securities purchase programs represent a monetization of government debt with regard to the purchase of government bonds on the secondary market that has been taking place since May 2010. If monetization is permanent, it can conceal the de facto national bankruptcy of the affected country ( disguised national bankruptcy ). This is the case when the state meets its liabilities in nominal terms, but can in fact only achieve this with devalued money. In the case of permanent monetization, the central bank pursues an expansive monetary policy by buying up government bonds while at the same time distributing the seigniorage to the state budget . In extreme cases, this procedure hardly differs from covering the state budget directly by issuing money by the central bank (“printing money”). In fact, the amount of money is inflated compared to the amount of goods available. H. that is devalued by inflation . The monetization of national debt is therefore seen as a major cause of high inflation rates .
Monetization can also be the business model on the Internet , for services that are initially made available free of charge ( free-to-play ), later to demand monetary consideration . To be mentioned here are virtual goods such as computer games , mobile apps or software . In order to earn money with YouTube , private videos can be monetized through a partnership, for which the submenu “Monetization” is available. The operator YouTube then supplies the corresponding videos with advertising - a job for many YouTubers .
Monetization also means that social problems are regulated with money, in that social policy measures are largely transformed into cash benefits; Examples are unemployment benefits or social assistance . The EU emissions trading is a monetization of specific environmental damage . In general, social costs can be monetized as long as they are quantifiable, as in the case of public goods ( dykes , street lighting , environmental costs ).
The monetization of environmental damage should be understood as an attempt to record the extent of environmental damage or environmental quality improvements in monetary units . The economic assessment of environmental damage is particularly the prerequisite for internalizing external effects .
A high workload or low work safety can be monetized through higher wages . General will pay the monetization of the work suffering interpreted.
History
In the history of science , monetization is the degree of diffusion and acceptance of money as a means of payment . In the Seleucid Empire , for example, the use of coins was already widespread after 320 BC , so that monetization has already taken place here. The monetization of the relations between feudal lords and their farmers was a lengthy process in the Middle Ages , because for a long time the natural economy predominated over monetary payments. In the 13th century, 60 farms in the Dachau district paid in kind and only five farms made money. Even today in parts of Africa there is still a significant problem of the penetration of money in rural areas in the context of monetization.
See also
- Commercialization
- Economization
- TEEB study on the economic evaluation of biological diversity and ecosystem services
Web links
Individual evidence
- ↑ Dudenredaktion (ed.), Duden - The Dictionary of Linguistic Doubtful Cases , Volume 9, 2016, p. 466
- ↑ Georg Charlier, The Monetization of Corporate Real Estate , 2008, p. 58
- ↑ Egon Görgens / Karlheinz Ruckriegel / Franz Seitz, European Monetary Policy , 2003, p. 300
- ↑ Otmar Issing , Introduction to Monetary Theory , 2007, p. 265
- ↑ Lutz Anderie, Quick Guide Game Hacking, Blockchain and Monetization , 2020, p. 50
- ↑ Philip Kaminski, Success on YouTube , 2014, p. 25
- ↑ Georg Hörmann / Frank Nestmann (eds.), Handbuch der Psychosoczialen Intervention , 1988, p. 29
- ↑ Verlag Dr. Th. Gabler (ed.), Gabler Wirtschaftslexikon , monetization of environmental damage
- ↑ Michael North, A Little Story of Money , 2009, p. 35
- ↑ Joseph Ndeffo Fongué, African Cultural Assets and the Monetization Process , Volume 7, 1999, p. 63