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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Document type:: Monograph

Structure type:: Chapter

Title:: Part III. International trade under inconvertible paper

Collection:: Economics Books

CHAPTER 27 DisLocATED ExcnanNGes FurRTHER CONSIDERED WE may proceed to other problems, somewhat different. The questions now to be considered arise not in connection with the invisible items (such as tourist expenditures) but from influences of another sort. Merchandise movements, instead of following variations in the foreign exchanges, may set in of their own accord ; they may precede the exchange variations. Under conditions of the type analyzed in the preceding chapter the remittances first set in; then the exchanges are affected; then prices shift; at last the imports and exports of goods are modified. In the cases now to be considered, on the other hand, the sequence in time and the causal connections run the other way. Changes in merchandise movements, in imports and exports, are the initial modifying factors. Thereafter come the readjustments of the foreign ex- change rates and of prices in the trading countries, and also some further and complementary changes in merchandise movements. In considering cases of this kind I shall proceed, as ir the last chapter, on the supposition that the volumes of currency in the several trading countries remain constant. It is not the effects of continuing issues of paper and continuing advances in prices that are here examined, but the characteristics of trade under dislocated exchanges pure and simple. Let the reader disregard for the moment the possibility or even probability that paper money issues may be enlarged, and that the enlargement will bring effects of its own. For the purpose of the analysis that follows, assume a fixed amount of currency in each country. A clear example of changes of the kind now to be considered — that is, where merchandise movements themselves cause exchange fluctuations — is that of an altered state of demand. Suppose two 262

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