Modern monetary systems

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Monograph

Identifikator:: 1753210836

URN:: urn:nbn:de:zbw-retromon-128414

Document type:: Monograph

Author:: Nogaro, Bertrand http://d-nb.info/gnd/117039713

Title:: Modern monetary systems

Place of publication:: London

Publisher:: King

Year of publication:: 1927

Scope:: XII, 236 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. The explanation of contemporary monetary phenomena and currency theory

Collection:: Economics Books

110 MODERN MONETARY SYSTEMS diately following the war from 1919 to 1922 a general contraction of currency and fall in prices, the latter was on the whole much more marked than the former ; for in most of the countries under consideration the circulation was only reduced to a small extent. Taking the index at 100 for 1919, it moves in some few cases to about 80 (Sweden, Canada), more often to about go (Switzerland, New Zealand, Austria, Denmark), to 98 (France, Netherlands), or even rises ultimately to above 100 (Japan, South Africa, Spain) by the end of 1922. The price index, on the other hand, falls to about 50 or §5 (Sweden, Great Britain, Denmark, Holland), 60 (South Africa, Japan), 70 (United States, Canada, Norway), and 80 (Australia, Spain, France). This series of facts, viz., that the fall in prices generally preceded the contraction of the currency, that the fall was in almost all the cases under observation much greater than the diminution of the currency and, finally, that the fall sometimes even coincides with an increase in the currency, runs counter to that rigid conception of the relation between the two phenomena which appears to be the logical result of the Quantity Theory.! Doubt- less it may be objected that conclusions drawn only from statistics of issues of currency, without taking into account in each country its credit structure, are in- sufficient. But the same criticism will apply to whatever theory is adopted and must throw the same doubt on the results of comparing variations in currency and prices both when they coincide and when they diverge. For the present we will confine ourselves to summaris- ing the most important facts which have now been ascer- tained and which, taken as a whole, may appear to con- form in general ways with the principles derived from the Quantity Theory. They may be described as follows : the rise in prices which occurred in the 16th century ; the depreciation among other paper currencies of the assignats ; the rise in prices which occurred in the middle and again 1 See infra, where this idea, especially as expressed by Mr. Irving Fisher, is discussed.

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