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 III. Monetary theory and its application in practice

Collection:: Economics Books

TO DISCOVER A STABLE STANDARD 18% With the franc, on the contrary, the only method of determining its value is by comparison with the objects which are valued by it, or with the mass of such objects, by ascertaining average prices. And if this average varies from one period to another, there is nothing to prove 2 priori that such variations are attributable to causes in- herent in the commodities. A change in the ratio between the factor commodity and the factor money may be attri- butable to the latter. Nevertheless it is still true that money as a standard of values enables variations in the exchange ratio between it and commodities as between one period and another to be measured, even if it has caused them, and to this extent it may be said to be an accurate standard of values. And so the difficulty arises not so much from its inadequacy as an in- strument of measure as from a general tendency to consider a priori that a sum cf money at a given period must be equivalent to the same sum of money at another period, and to make con- tracts on this basis without taking into consideration those very indications which are given by money itself as a standard of values showirg how such calculations ought to be corrected. This habit is no doubt due to the fact that usually price changes are slow and small over any period which affects a contract. It is probably also due to the fact that such variations in the average exchange ratio between the mone- tary unit and commodities over a given period have only recently been registered, and that the method of registra- tion is still somewhat imperfect. As money is used, not only as an instrument of exchange and as a common measure of value, but also in some sort as an “accumu- lator” of values, it is evidently convenient, in carrying out transactions in successive stages over a period of time, to agree that a given sum of money shall always retain the same purchasing power. This can be done in normal times without any serious inconvenience ; but it becomes quite impossible when exceptional events such as a general fall in production, excessive note issues or exchange crises make the purchasing power of money exceedingly variable. liable owing to the fact that the substance of which it is made does not entirely escape the effect of variations in temperature,

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