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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

156 MODERN MONETARY SYSTEMS disparity which, on a certain theory, ought to re-establish equilibrium by stopping imports and stimulating exports. On the contrary, this disparity has been reduced to a minimum by an immediate rise in internal prices. It is therefore perfectly clear that if throughout these wide fluctuations the ratio between internal and external prices remains somewhere in the neighbourhood of purchasing power parity, this is not due to any virtue in the purchasing power parity whereby it can restrict the exchange fluctuations, but it is because the internal purchasing power has felt the effect of these fluctuations whatever they may be. In short, it hardly seems possible to admit Mr. Cassel’s argument that the exchange cannot move far from purchasing power parity because bills would not find purchasers at any other rate. A study of monetary phenomena merely seems to confirm the idea, which is at once old and new, that there is a reciprocal relation between the rate of exchange and the balance of payments, and that the return of the balance of payments to equilibrium will more or less tend to regulate the exchange. It may therefore be admitted that the effect of the disparity between purchasing powers is such as to restore the exchange, more or less, without any previous alteration in the currency; but it must be added that the purchas- ing power parity itself alters with the exchange. And so in the last analysis there does not appear to be any certain and constant factor which will bring the balance of pay- ments into equilibrium, nor is there any limit to the fluctuations of an exchange which is no longer restricted by the gold points or by an equivalent convertibility. § 10. The necessary conditions for a return to normal exchanges. Having studied the circumstances in which an exchange crisis will arise and the conditions in which abnormal exchanges develop, we must now complete this sketch of a theory of exchange by inquiring how a return to a stable exchange can be effected.

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation