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

THE MONETARY CRISIS 33 and, it seems, took the view that the Czech crown should be allowed to appreciate until it reached the value of the former Austrian crown, i.., the gold crown. After having counteracted a drop in the crown by energetic measures on the part of the Banking Office which used a portion of its stock of foreign exchange for the purpose, Rasin proceeded to allow the rate to rise without regard to the resulting difficulties for industry. For the recovery of the crown had taken place before a corresponding fall of internal prices had occurred, and it was difficult to adapt cost prices to the selling prices abroad. It is true that domestic prices began to fall with the improvement in the exchange, of which imported pro- ducts were the first to feel the effects. *“ Colonial food- stuffs, cocoa and coffee fell immediately, and all the faster because the import duties upon them were lower. Freely imported commodities brought down the prices of identical and similar commodities produced at home; cotton affected wool, and lard affected butter. But it was also necessary that exportable commodities should fall, in order that Czech exporters should be able to keep their markets. A reduction in salaries became necessary, and one which brought them perhaps even below the level corresponding to the actual fall in the cost of living.” Industry met with serious obstacles, and yet it was the very crisis resulting from the difficulties of adaptation which finally removed them ; for the menace of unemploy- ment forced the wage-earners to give way.l of the Czech crown, once it had begun, produced an improvement in the balance of payments. Conversely, Czech exporters, who had hitherto sought to escape from the control of the F oreign Exchange Control Office, repatriated capital. ! The following table showing the indices of various countries, given in Czech crowns at the current rate of exchange, shows that the fall in domestic prices was not great enough to counteract the recovery of the crown in the eyes of foreign debtors :— Jan. April Aug. Sept. Oct. Nov. Czechoslovakia . . 1675 1491 1386 1155 1059 1017 United States. . . 2316 1609 1407 1126 994 99g Switzerland ~ +. 2360 2360 1501 1121 989 994 (Piot, op. cit., p. 205.)

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