Tote und lebendige Wissenschaft

Bibliographic data

Monograph

Identifikator:: 1016561377

URN:: urn:nbn:de:zbw-retromon-85201

Document type:: Monograph

Author:: Spann, Othmar http://d-nb.info/gnd/118615904

Title:: Tote und lebendige Wissenschaft

Edition:: Zweite, stark vermehrte und durchgesehene Auflage

Place of publication:: Jena

Publisher:: Verlag von Gustav Fischer

Year of publication:: 1925

Scope:: XV, 172 Seiten

Digitisation:: 2019

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Tausch und Preis nach individuallistischer und universalistischer Auffassung

Collection:: Economics Books

154 + MODERN MONETARY SYSTEMS provoke a rise in prices closely bound up with the exchange movement. In Germany, for instance, when a fall in the mark was threatening, the crowd, which through previous experience was alive to the connection between the two phenomena, rushed to the shops and so helped to provoke the rise which it feared. More than this, when, as a result of progressive depreciation, nobody knows what the currency is going to be worth from one day to another; when trade operations have to be based not on the pre- vious cost of production but on a cost of replacement which is unknown, and contracts are therefore drawn up in terms of gold and foreign currencies, and prices vary with the rate of the dollar, the connection between price movements and the exchange becomes exceedingly close.? And so there is no certain conclusion to be drawn from a fairly general correspondence between the rate of exchange and the respective purchasing powers of a currency on the internal and external markets? It is true that, for the reasons given above, the exchange may be more or less affected by the purchasing power parity ; but by its reaction on internal prices it alters in turn and more certainly the purchasing power parity itself; this may be enough to explain the approximate corre- spondence. Moreover, it is probable that zo the extent to which this correspondence is not quite complete, or rather in so far as the rise in internal prices falls short of the loss on exchange, the discrepancies in purchasing power will tend to bring the balance of payments and the exchange itself into equilibrium; but it is improbable that these discrepancies can have their full effect, since an unfavourable exchange will tend to provoke a rise in internal prices.’ 1 As we have seen above, it even happens in certain circumstances that the internal depreciation finally overtakes the loss on exchange. 2 A detailed analysis of the relation between price and exchange curves shows that a correspondence between the respective variations of internal prices and rates of exchange in the countries in question is too frequent to allow of a mere coincidence. See on this subject the instructive article by M. Olivier in the “Revue d’économie politique” of July 1922, and Mr. Keynes’ article in the first number of the Manchester Guardian series, entitled, “The Reconstruction of Europe.” 3 In an article already quoted (“La circulation, le change et les prix,”

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