International trade

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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 III. International trade under inconvertible paper

Collection:: Economics Books

352 INTERNATIONAL TRADE now yields less than before. Less American goods are got per unit of the labor given to the British products that go out. Those goods, the American goods, rise in price. But here too no other prices are affected; the British domestic price level remains the same, and the price of each several British article remains the same. These propositions, as I need hardly say again, refer to the permanent results, the definitive stage; the reader will supply for himself the qualifications as regards probable temporary changes in the prices of exported articles and the quite conceivable temporary changes (indicated in the footnote) of some domestic articles. Looking now at the broad consequences under paper régime as regards prices and money incomes, we find, as already intimated, changes essentially different from those to be expected under a specie régime, and yet, as regards the welfare of the trading coun- tries, an outcome not essentially different. The mechanism is altered, but the substantial results remain the same. Under the specie mechanism the total money income of the population of each country, so far from remaining constant, becomes greater or less with the movement of the specie. Domestic prices likewise have their ups and downs. In the case chosen for illustration, that of larger payments from Great Britain to the United States because of a steady succession of loans, money incomes are lower in Great Britain, domestic prices show a fall, the general index of prices presumably registers a fall. Imported goods are dearer, and the British consumers are worse off in that they buy dearer imported goods with lower money incomes. Under paper, how- ever, money incomes are the same and domestic prices are the same; the only difference is that imported (American) goods are dearer. The general index number records a rise in prices. The British consumers in this case also are worse off ; with the same money incomes, they pay more for American goods. Here is the substantial outcome, the same under paper as under specie. Conversely, of course, in the United States. Under specie we expect as a result of the increased British remittance to the United States higher money incomes, higher domestic prices, lower prices

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