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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Monetary theory and its application in practice

Collection:: Economics Books

186 MODERN MONETARY SYSTEMS observed that this ratio, which is generally determined with the help of money, is not arrived at merely by chance. It may be said that this scale of values, which can be deter- mined with the help of money as between different com- modities at a given moment, or these changes which with the help of money can be measured from one moment to another, are built up on some of those characteristics which writers on the theory of value have attempted to analyse. But without introducing here any discussion of such theories it may be said that even if these character- istics may be attributed both to money and to commodi- ties, they are in all cases relative and variable and could not give to the measure of exchange value a basis comparable with that given by length to the measure of length. And even admitting that the theory of value which attempts to reduce all value to mere utility has been successful, this utility is relative and varies with the ratio between the supply and demand. Finally, it should be observed that money, being a measure of values, is at the same time an instrument of exchange, and that according as it is issued in larger or smaller quantities it affords more or less pur- chasing media. As we have seen, the latter may be in- creased so as fo change the rate at which transactions take place and which money, as a measure of values, is intended to register. This is the chief reason why money appears to be an unstable standard. In fact it is not obvious a priori that it is unstable in all circumstances ; but it may be said that, given its general character, it does not imply stability and sometimes there are serious reasons for believing that it is itself responsible for changes in the exchange ratio which it measures. Hence a standard of value cannot be expected to provide, like units of length or weight, a fixed point of comparison for the relations which it serves to establish. We all know what is the length of a metre independently of the data which it gives as to the length of the objects it measures, and if we demonstrate by means of a metre that a wall in process of building has been raised or that a tree has grown, it will occur to nobody that the metre may have become shorter. 1 We neglect here the very small changes to which the metre may be

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