International trade

Bibliographic data

Monograph

Identifikator:: 1758394757

URN:: urn:nbn:de:zbw-retromon-136209

Document type:: Monograph

Author:: Taussig, Frank William http://d-nb.info/gnd/120199459

Title:: International trade

Place of publication:: New York, NY

Publisher:: Macmillan

Year of publication:: 1927

Scope:: XXI, 425 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

200 INTERNATIONAL TRADE a Il Ae brings a corresponding change in its total monetary supply or an immediate effect on its level of prices. But it is entirely possible that the total of the medium of exchange may be sensitive to gold movements — may shrink in some degree when gold flows out, expand in some degree when gold flows in. And it is also entirely possible that the gold movements may have a dominating influence on the monetary total ; that this total is not only sensitive to them, but remains sensitive to continued movements of gold in the same direction, and that the direction is ultimately determined by them. To put it in another way, it is entirely possible that the course of prices in a country is sensitive to the international movement of specie, and also that in the long run the course of its prices is determined by that movement. These two questions — of sensitiveness and of domination — are not unrelated. There could not be domination without sensitive- ness; and continuing sensitiveness leads to domination. Never- theless it will be convenient to consider them independently. We may turn first to the question of sensitiveness. The forms of the medium of exchange (other than gold itself) which bulk largest in modern times are, on the one hand, paper money payable to bearer in the form of bank notes or government notes, and, on the other hand, bank deposits. Among these, government notes are obviously of the non-sensitive kind. Such, for example, are our own United States notes (greenbacks) and the Dominion notes of the government of Canada. Such were Reich- skassenscheine of the pre-war German system. Bank of England notes are in the same class; they too are fixed in amount and indeed are in effect government notes. Most issues of bank notes, however, are in some degree flexible, and thus at least potentially sensitive. The deposits which constitute the other form of bank money, and which are by far the largest item in English-speaking countries, are least of all fixed in amount either by law or by custom, and are most of all — at least potentially — sensitive. Hence it is the connection between bank operations on the one hand and changes in prices on the other which must chiefly engage our attention.

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