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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part III. International trade under inconvertible paper

Collection:: Economics Books

DISLOCATED EXCHANGES FURTHER CONSIDERED 367 modic changes because of crop fluctuations. There are abundant examples where a country having an inconvertible currency, and therefore dislocated exchanges, finds its international trade per- turbed in just this way : Argentina, for example, the United States, Russia. When such a country has a bumper crop, its exports suddenly increase. The price at which the increased quantity of exported goods sells in foreign countries will depend on the conditions of demand there, and also on the conditions of supply in the importing region — on the state of the crops all around. Demand ordinarily does not change, or changes but little. It is an abrupt change in supply that has to be reckoned with. At the risk of some repetition [ will dwell on several aspects of situations of this sort which deserve attention. The first of our general propositions on the course of interna- tional trade under dislocated exchanges is here most conspicuously substantiated ; namely, that at any given time the rate of exchange is the result of the impact of the momentary supply on the momen- tary demand. The enlarged exports and the consequently enlarged offerings of foreign exchange meet an unchanged demand. The rate of exchange declines abruptly. The actual course of events supplies abundant illustrations of this first stage, and there is abundant discussion of it in the literature of the subject. Observ- ers of all kinds, both those versed in economic theory, and the financial writers and the business men, are familiar with the effects of crop fluctuations under dislocated exchanges. The for- mulation of the rationale of the case has not often been precise, but its general character is known to all. The pressure from the added exports has for its first effect that exchange on gold countries falls. It is clear — I would emphasize the point — that such a decline in foreign exchange is the result of merchandise movements. It is the increased exports, the larger crop movements, that bring about the new rates of exchange, and cause them to be more “favorable” to the country from which the exports come. The sequence is obviously the reverse of that which appears when

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation