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

CHAPTER 11 THE RETURN TO NORMAL EXCHANGES § 1. Remarks on the nature of the exchange and on the idea of stability. Taking the example of certain countries in which irregular price movements have been in direct relation to exchange fluctuations, we have just seen that the problem of obtaining a stable monetary standard may be directly bound up with the problem of exchange stability. The latter problem deserves to be studied by itself; for there are countries which, having escaped the more serious up- heavals due to an unlimited depreciation of the monetary unit whether external or internal, have been seriously dis- turbed in their economic life by an unstable exchange. Even when the internal purchasing power of a currency has not been so far affected as to lose its normal function of a standard of values over any considerable period, ex- change fluctuations have nevertheless putserious difficulties in the way of commerce and industry by removing a sure basis for transactions with foreign countries. More than this, if irregular exchanges are prolonged even though the actual depreciation may still be slight, there is always the threat of some sudden aggravation and of unlimited deprecia- tion with all the series of disasters involved thereby. For in spite of what Mr. Cassel says, the example of countries like Poland or Germany has shown that, once the limits of the gold point have been crossed, there is no factor other than a return to the convertibility of internal cur- rency into external currency which can arrest the fall of a currency which has become a prey to all the vicissitudes of speculation. The problem of stable exchanges, and there- fore of stabilising the exchanges, is one of those practical ; U3

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