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 I. Modern monetary systems and their operation

Collection:: Economics Books

64 MODERN MONETARY SYSTEMS of 1920, and 122 milliards at the end of 1921. It might be supposed that, given this complete absence of assets, the German financial system must have had an unfavourable influence on the value of the mark ; but after having de- preciated by 50%, at Amsterdam at the end of 1918, and by nearly 90-89, at the end of 1919, the mark was nearly back at the latter rate at the end of December 1920, with a depreciation of 92-109, as against 94:79, in January of the same year and 87-59, in June.l Even internal prices which had only been recorded in Germany since 1920 had varied little in the course of this year; the index moved from 1446 in August to 1437 in December, after having reached 1506 in November, and remained at a lower level during the first seven months of 1921 (official index of wholesale prices). The connection commonly supposed to exist between fluctua- tions in the exchange, the note issue and prices is therefore not apparent during this period; the comparative stability of the exchange may, however, be partly attributed to certain steps taken by the Reichsbank and the German Government.? But although, as has just been shown, the note issue in- creased very considerably between 1918 and 1921 with- out any appreciable fluctuations in the exchange or in internal prices, it is no less remarkable that, from the second half of 1921 onwards, the exchange rates and prices rose concurrently and far out-distanced the note issue, which, in spite of the activity of the Government printing press, never increased in proportion to the rise in prices. Whereas on June 30th, 1921, the percentage increase in prices was only 2:19, of the corresponding figure for the previous quarter, the note issue having increased by 59 the position is reversed as soon as prices begin to follow the exchange. This is shown by the table on p. 65. Thus the monetary crisis in Germany shows on the whole that the internal price fluctuations were narrowly 1 The loss on New York was rather more than 959%, at the end of January 1920, 89%, in June, and 94'1%, in December. 2 See Rist, Revue d’ économie politique, 1921, p. 73.

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