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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Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

188 MODERN MONETARY SYSTEMS Moreover, even with a normal monetary system, when the exchanges are stable and there is no increase in the volume of currency capable of destroying the balance be- tween the supply and demand of commodities, prices will still vary with the technique of production. Hence the number of monetary units corresponding to a given quan- tity of commodities will necessarily vary from one period to another. Therefore we should not hold z priori that a sum of money at one period will be equivalent to the same sum of money at another period. In order to carry out transactions which are spread over a period of time, we ought logically to ascertain this equivalence with the help of coefficients. And it is money—a bad “accumulator” of value but an exact measure of changes of value—which will enable us to determine those coefficients. § 2. Anempis to find a legal solution for the problem of un- stable currency. Thus the problem appears to be much more legal than economic in character and it seems that it ought to be solved by the way of drawing up contracts. Taking first long-term contracts, for instance long-term leases, a normal solution would be to fix a rent varying with the average level of retail prices—as set up, for in- stance, in France in the general statistics—in the year or half-year preceding the date when it falls due; such statis- tical data would make it possible to fix, on every date when the rent falls due, as nearly as possible a sum representing the purchasing power of the currency which was provided for when the contract was concluded. We see the same idea applied in countries with highly depreciated currencies in gold loans, which often do not involve payment of the sums lent nor the sums reimbursed plus interest in gold valuta, but merely the payment in internal currency of a sum X, which corresponds at the date when each operation is effected to a given value fixed in gold. This system, which is based theoretically on gold and in practice on some foreign currency such as the

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