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 II. The explanation of contemporary monetary phenomena and currency theory

Collection:: Economics Books

106 MODERN MONETARY SYSTEMS recent cases, such as that of Germany, the rise in prices seems to have been chiefly caused by the exchange, and inflation appears to be an effect rather than a cause. The case of Czechoslovakia should also be borne in mind. Apart from these extreme cases of unlimited currency expansion, the last war offers examples of a comparatively moderate issue which ultimately trebles or quadruples the pre-war circulation, and is accompanied by a rise in prices of the same dimensions. Here again it seems reasonable to attribute this phenomenon to the effect of inflation on prices. At the same time, a large share in the maladjustment of demand and supply must be assigned to underproduction and to the difficulty, risk and expense of transport, also due to war conditions.l To all appearance the expansion of the currency is only responsible for a part of the rise in prices—a part which it 1s almost impossible to determine; but in any case it may well have contributed to making the rise permanent by bringing the amount of available currency into pro- portion with the new level of prices. Again it is difficult to find any exact proof of this hypo- thesis by comparing currency and price variations in each country during the war, and it is also difficult to find a proof in a comparison between different countries at the same point of time. It is, of course, true that there is a general concord- became catastrophic, with a drop from 18 francs in Nivose of the Year III to something between 0°3 and 0°4 in Ventose. See, on this point, the tables showing the depreciation of paper money edited by M. Pierre Caron. See also Marion, “Situation monétaire de la France depuis 1715,” and M. Albert Despaux, “L’inflation dans I’histoire,” in which the author attempts to bring out the various causes of the depreciation of the assignats and of the fluctuations in their value. 1 Thus M. A. Nigh, in a thesis on “La politique financié¢re des Pays Bas pendant la guerre,” observes that there was continuous currency expansion in his country, whereas the upward movement of prices was often inter- rupted; hence prices appear to him to have been determined, not only by changes in the volume of currency, but also by special causes, which suffice to explain each case—in particular the grant or refusal of export licences, the torpedoing of vessels, the signature of agreements with foreign countries for the delivery of coal, etc. (pp. 81, 82).

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