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

220 MODERN MONETARY SYSTEMS Our only remaining task is to consider the practical steps necessary in order to carry out this policy in each of the countries concerned. Most of these countries, like France, could probably return to a system of notes con- vertible abroad with the help of their own gold reserves if the question of their political debts were settled, and if they could substitute a long-term external loan for those specu- lative credits which are at present keeping up their exchanges but at the risk of allowing them to fall back. But if we wish to examine the whole problem of a world- wide monetary reconstruction we shall have to set up a much more general plan. We reproduce here, with some additions, the plan which we have already sketched out in a previous work.! In order to set up some system which on the whole will resemble the one which was in force before the war it would seem necessary to redistribute the stock of gold and supply each country with a volume of international currency corresponding to the volume of its foreign transactions, sub- ject only to the following condition. Gold, which has be- come rather scarce owing to the rise in commodity prices even when expressed in gold, and to the fact that the tendency to a true balance of trade has diminished since the war, should not be in circulation at home; it would be destined exclusively for guaranteeing that the national fiduciary currency should be convertible abroad. But as it is hardly to be supposed that countries which have a fiscal effort which it presupposes will be likely to prevent the import of superfluous luxuries to a certain extent, while it will also perhaps diminish the capacity to save, to produce and to export. In any case there is no direct and physical relation between Budget equilibrium and a stable exchange which justifies one in considering that the balancing of a Budget is a specific and sufficient remedy for an unstable exchange. Moreover, we have demonstrated that on careful analysis of the factors in a return to stable exchanges we discover in the last analysis—as in Austria and in Czechoslovakia—that unofficial or official action has been taken which has had the result of creating a supply and demand for bills at an approximately fixed rate. 1 «Réparations, Dettes Interalliées et Restauration monétaire,” Presses Universitaires, Paris, 1922.

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