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 III. International trade under inconvertible paper

Collection:: Economics Books

THE GOLD EXCHANGE STANDARD 383 the rate of interest at large. While it fluctuates much, in each country it still oscillates above or below the general rate of interest on long-time investments. And this latter rate for a given country is relatively stable. It tends on the whole to be higher in some countries than in others. The discount rate also tends to be higher in some than in others. Being permanently higher in one country than in another, can its mere height exercise a permanent depressing influence on prices in the country of higher rate? Changes in the rate, to repeat, have a first effect on loans, on deposits, on available funds; on the temper of the business public also, and thus on the active or sluggish movement both of the purchasing medium and of the goods purchased. But it would seem that it is degrees of move- ment or relative movements which alone are thus affected. The extent to which people use loans and deposits at any given time may indeed be influenced; things may be speeded up or slowed down. But does not the use of loans and deposits (or of bank money other than deposits) depend in the end on the ways and habits of the people in handling their money incomes or purchasing power? and so on the extent to which a given volume of legal tender cash (or cash otherwise made actually acceptable) bolsters up the structure of credit payments? Can these forces be per- manently modified by mere changes in the charge which the busi- ness community has to pay for short-time loans? On the other hand, the quantity of goods put on sale, and the way in which they are put on sale — the flow of goods into the markets — also depend on forces which in the last resort are independent of the discount rates: the volume of production, and the ways and habits of the people in buying and selling goods. No doubt bank rates and credit extension have their effects, both mechanistic and psychological, on the production and distribution of goods as well as on the ways in which people use their purchasing power. But are bank operations the determinants of continuing changes in all this interplay of factors, and so determinants of prices one way or other, up or down? I cannot but believe that those who propose gold exchange standards, stabilized exchanges, currencies managed by discount

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