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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Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

CHAPTER II CURRENCY AND PRICE MOVEMENTS S 1. General price movements and the Quantity Theory. Or those economic phenomena which appear to be closely connected with the working of monetary systems, the first to be mentioned are the general movements of prices. As almost all transactions under the modern economic system are effected by means of money, almost all goods and service are exchangeable for money ; more accurately, any unit of any given commodity or service is exchange- able for a certain number of currency units ; this number of currency units in its relation to the commodity or ser- vice in question is called tke price ; the exchange value which is created between each commodity or service and the currency unit is usually expressed by the price. Thus the exchange value of the commodity will increase if the price rises, and that of the currency will correspondingly decline, since more monetary units will be required in order to obtain the same object—and vice versa. More- over, it is possible to measure changes in the average exchange value, or purchasing power, of a currency by the movements of average prices. Thus a currency loses purchasing power or depreciates when there is a rise in prices ; its purchasing power increases, or it appreciates in the opposite case. A rise in prices and currency de- preciation are therefore equivalent, and express the same phenomenon ; this also holds good of a fall in prices, i.e., an appreciation of the currency, for the rise or fall of the currency is in relation to goods or services. This simple statement has its importance ; for often, by mistaking this inevitable correspondence between two IOI

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