Modern monetary systems

Bibliographic data

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 I. Modern monetary systems and their operation

Collection:: Economics Books

THE MONETARY CRISIS 91 Currency reform in Austria offers therefore another example of stabilisation effected through the Gold Exchange Standard. It is true that this method was not explicitly mentioned in the reconstruction programme drawn up by the League experts. But it must not be forgotten that this had been the Austrian system since 1892, and there was doubtless no necessity to prompt the Austrian authorities of the new Bank to pursue a line of conduct which was the natural consequence of the time- honoured tradition of the Vienna market, and which had already been followed by the Austrian section of the Austro-Hungarian Bank since the end of August 1922. It is perfectly clear from the reports of the Commissioner General of the Le~gue of Nations at Vienna that the new Bank of Austria, follow: g the example of the former Bank, supplies the market with foreign bills at a rate which with the help of its foreign credits can be kept nearly constant, and thus establishes a fixed export gold point bazed on the new parity of the crown. It is no less clear that *y the purchase of all the surplus foreign commercial paper at more or less the same rate, and with practica’’ unlimited quantities of domestic currency at its disposal for this purpose (i.e., by the issue of notes), the Bank establishes for the benefit of holders of foreign bills a rate which corresponds to the import gold point, and which does not allow the dollar to fall in relation to the crown, ory in other words, the crown to rise in relation to the dollar, above the exchange parity which it has fixed.1 It is strange, therefore, that the example of Austria should have been advanced as proving that all “artificial” measures of stabilisation are vain, and that purely empirical measures to balance the budget and regulate the circula- tion are effective. Though not in name, the Bank of Austria, like the former Austro-Hungarian Bank, in fact plays the part of a Conversion Office. It should also be observed that the Austrian circulation has continuously increased since the crown was stabilised. It had stood at §49 milliards on June 30th, 1922, had risen ! This parity is, however, as in Czechoslovakia, not expressly fixed, and the Bank of Austria has not opposed a slight rise in the crown.

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