Thursday, February 27, 2014

Complex transactions require precise terminology

Imagine you are part of a drug deal or a gun deal.  Tensions are high, heavily armed security on both sides.  Most deals don't end in gunfire due to a deliberate desire to rip off the other party, gunfights occur due to miscommunication.  What was promised?  What was delivered?

In central banking transactions, language differences exist between countries.  Expectations.  Assurances. 

Treaties and trust funds.  Undelivered promises.  Partially delivered promises.  Promises deliberately ripped off.

The above is why a common language to describe complex transactions in a structured way is needed.

No comments:

Post a Comment