The agricultural output of England and Wales 1925

Bibliographic data

Monograph

Identifikator:: 1757028552

URN:: urn:nbn:de:zbw-retromon-135495

Document type:: Monograph

Title:: The agricultural output of England and Wales 1925

Place of publication:: London

Publisher:: Stat. Off.

Year of publication:: 1927

Scope:: XV, 152 Seiten; graph. Darst., Kt.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter III. The production of crops

Collection:: Economics Books

CURRENCY AND PRICE MOVEMENTS 121 instruments in circulation, the problem in so far as it oncerns the relation between money and prices remains he same. There are two effects which run counter to each other. The first is to increase the demand for existing goods and create a tendency to a rise in prices; this 1s followed by increased facilities for production, in so far as demand has stimulated the acquisition of means of pro- duction, and this creates a tendency to a fall. Although we have become familiar through practica daily experience with the idea that credit may be, as it were, deliberately fertilised, it is surprising to find that the idea emerges from this analysis of the problem that an increase in the quantity of money may stimulate pro- duction and * create wealth.” And these two conceptions are usually so little identified with each other in the minds of economists that some have even explicitly disallowed the second of the influences to which we have referred.! But it should be observed that a mere increase in demand ma be enough to stimulate production ; a number of manu- facturers will be able to produce more with the material and labour at their command. Moreover, the transfer o purchasing power to undertakings which are in process o reation or development creates one of the conditions equired for technical progress ; and so by promoting the exploitation of latent resources and encouraging the more profitable methods of use of production this non-material and somewhat artificial form of wealth of which a monetary instrument consists may become the origin of real wealth. Obviously the normal method of attaining this end is to put into circulation as quickly as possible the money 1 Certain economists before the classical school, in particular the financier Law, had pointed out the stimulating effect of an increase in the quantity of money. While implicitly recognising this idea when investigating credit, he economists of the classical school contest it when they come to deal ith money. Being chiefly concerned with fighting the “wealth” fallacy, hey state that money will only facilitate transactions, as oil lubricates the works of a machine, and refuse to allow any creative power. We have, indeed, observed that though an increase in the circulation increases production by stimulating transactions, its power is limited by the possibility of putting to better use means of production which already exist.

Access restriction

Copyright

Metadata: Wert und Kapitalprofit

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation