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

174 MODERN MONETARY SYSTEMS that production. If, on the other hand, the cost of pro- duction falls, production will be stimulated, but for the reasons shown above a given weight of metal will always be exchangeable for the same number of monetary units, whether in the form of coin struck from the same metal or in any other currency. Thus a metal accepted for free coinage will always be exchangeable for a constant number of monetary units, whatever its cost of production; the exchange value of the weight of metal corresponding to the monetary unit is therefore not directly influenced by the cost ; as for the value of the monetary unit itself, in so far as it is admitted that it is influenced by variations in quantity, it may be said that it is perhaps indirectly influenced by the fact that varia- tions in the cost increase or diminish the number of monetary units put into circulation. But under a modern monetary system this quantity does not depend solely on the amount of the standard metal, since other metals and substitutes for metal currency are in circulation and since the volume of the actual circulation is a function of the development of methods of clearing in any given country. Finally, it is easy to imagine and to prove that there are variations in the volume of currency which are totally independent of the stock of metal or of any other product which has a marketable value and is intended to be used for monetary purposes. The working of bimetallism, which is inexplicable on the basis that the exchange value of the monetary unit is determined by the rate of the “commodity” of which it is made, is easily explained in the light of the above considerations. The cost of production of each of the two metals has no influence on the exchange value of the coin, neither do the respective quantities of the two metals have any influence on the exchange value of the two kinds of coin struck internally from them and their fluctuations have only had a slight influence in monetary relations with non- bimetallist countries in connection with their require- ments for the purpose of settling indebtedness vis-a-vis such countries.! 1 See above.

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation