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

66 MODERN MONETARY SYSTEMS therefore no longer responsible for rising prices; it can only help to confirm them, after having itself followed the rise, unless indeed the mere prospect of further inflation may be considered as influencing the exchange. In fact, it must be a desperate financial situation as a whole, and not inflation by itself, which really influences speculation.t Inflation does not therefore appear to have a greater responsibility than has been indicated above for the accelerated depreciation of the German mark and for its ultimate downfall. For from the beginning of 1920 to the middle of 1921 it did not have any very conspicuous effect on prices; since then it has lagged far behind the price move- ments which were bound up with the exchange ; iz cannoz therefore have been capable of preventing the recovery of foreign trade by causing a rise in prices. Moreover, until recently (February 1923) internal currency depreciation has almost always been less than external depreciation, thus leaving German exporters who sold foreign exchange a margin of profit. As we shall see, iz was only as a result of the habit of using the dollar as a money of account that internal prices rose to the level of the loss on exchange, and that the internal depreciation of the mark came to equal its external depreciation and ultimately to exceed it. § 7. General characteristics and results of the world crisis in the exchanges after the War. Fundamental importance of price movements following instability of the exchanges. The difference between the phenomena, taken as a whole, which appeared during the exchange crisis and those which had previously been observed is one of degree rather than of kind. We are witnessing a universal monetary crisis chiefly caused by the existence of a large number of countries with an inconvertible paper currency 1 Tt should be observed that even quite recently, when the note issue has continually increased, a temporary fall in prices has occurred which exactly coincides with a temporary improvement in the exchange due to the intervention of the Reichsbank; the price index, which reached 7040 in February 1923 when the dollar index stood at 6647, fell to 6124 in March 1923, the dollar rate having fallen to 4965.

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