War borrowing

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Monograph

Identifikator:: 101124439X

URN:: urn:nbn:de:zbw-retromon-21219

Document type:: Monograph

Author:: Hollander, Jacob H. http://d-nb.info/gnd/136924867

Title:: War borrowing

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1919

Scope:: 1 Online-Ressource (215 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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164 WAR BORROWING in the mass of commodities or in the frequency of transfers or any reduction in the velocity of circula tion, an increase in the volume of money or check able deposits over a theretofore normal supply will be followed by a rise in general prices. 7 This increase in the circulating medium has been called inflation, and the inquiry has been phrased as “ Do government loans cause inflation? ” If, how ever, the term inflation be given — wisely or un wisely — an altered signification, the result is not to change the quest but merely its title. Instead of seeking to determine whether war borrowing causes inflation, we should undertake to ascertain whether such operations bring about a rise in general prices — it being understood that this increase is the con sequence, other things being equal, of an increase in the volume of money and credit. The monthly index numbers of wholesale com modity prices and of retail food prices in the United States in the calendar years 1915, 1916, 1917 and 1918 as compiled by the U. S. Bureau of Labor have been as follows: 7 Thus the Federal Reserve Board has lately defined in flation as “ the increase of current purchasing power, whether in the form of actual currency or in the form of credit— faster than the volume of available goods ” (Federal Reserve Bulle tin, November, 1918, p. 1048). With this compare Professor Kemmerer’s succinct statement; “ Inflation means a redun dancy of money or circulating credit, or both that results in rising prices. It occurs when, at a given price level, a coun try’s circulating media — money and credit instruments of ex change— increase relatively to trade needs.” (“Inflation and the Government Fisc.” prepared for Committee on War Fi nance of American Economic Association; see also “ Infla tion ” in American Economic Review, June, 1918.)

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