Modern monetary systems

Bibliographic data

Monograph

Identifikator:: 1768152721

URN:: urn:nbn:de:zbw-retromon-148079

Document type:: Monograph

Title:: 10 Jahre Wiederaufbau

Place of publication:: Wien

Publisher:: Wirtschaftszeitungs-Verlags-Ges. M.B.H.

Year of publication:: 1928

Scope:: 664 S.; Ill.

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Die Entwicklung des Post- und Telegraphenwesens / von Ministerialrat Dr. Ferdinand Weiß

Collection:: Economics Books

1383 MODERN MONETARY SYSTEMS S 4. Fluctuations in abnormal exchanges—limited influence of the balance of payments—influence of speculators and of their forecasts. As those exchange phenomena which chiefly concern economists are connected with abnormal exchanges and have as their characteristic the instability of the rate, it is important to seek the causes of fluctuations. Among the possible causes, there is one which will immediately occur to the reader, viz., the position of the balance of payments ; for the rate of exchange registers the rate of bills drawn on foreign countries.! These drafts represent debts which are immediately recoverable from foreign countries, and so the aggregate of the drafts offered corresponds to the aggregate of such debts. And as these drafts are bought by persons owing money abroad, the total demand depends upon the total amount of the debts which 1s recoverable from abroad at any given moment. Hence the ratio between the total amount owed #0 foreign countries and the total amount owed &y foreign countries and recoverable at any given moment will determine supply and demand on the ex- change market at that moment ; and this 1s admitted to be the determining factor, so long as the exchange fluctuates within the gold points. This factor will not, of course, cease to have an impor- tant influence when the exchange fluctuates outside the gold points ; this becomes clear from the mere perusal of the weekly review in the financial Press, in which the editors follow day by day the events which are likely to 1 A Frenchman, in order to pay a debt in England, instead of buying a draft on London may wait for his English creditor to draw a bill on him and negotiate it. In these circumstances his debt will not immediately appear on the Paris market; but an equivalent English credit will appear on the London market; this amounts to the same thing, as the two markets are in complete harmony and their rates are always being brought to the same level by continuous arbitration. 2 Even if the drafts which are negotiated are only payable after a certain interval, they can nevertheless be discounted and are therefore a means of immediate payment.

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation