Money

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Monograph

Identifikator:: 1819853969

URN:: urn:nbn:de:zbw-retromon-207464

Document type:: Monograph

Author:: Cannan, Edwin http://d-nb.info/gnd/118666916

Title:: Money

Edition:: 6. ed.

Place of publication:: [London]

Publisher:: King

Year of publication:: 1929

Scope:: XII, 120 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Further elucidations

Collection:: Economics Books

“SCARCITY OF COMMODITIES” 8g and substitutes a penalty : if the issue is depreciated 60 per cent. he will, to adapt a famous phrase, have to pay tenpence for fourpence. Of course, he will not do it, and consequently the increase of the currenc is stopped and this maintains its value. Scarcit+ of commodities” as a cause of high § 5 During the war and afterwards, when a currency began to depreciate, it was often said that the cause of the rise of prices was a growing scarcity of com- modities. This was supposed to be an argument in favour of increasing the currency, though it is diffi- cult to see how any sane person could believe that the fact that commodities had declined in quantity was a reason for making that decline greater in proportion to currency by increasing the quantity of currency. If there is a desire to keep prices stable, it would seem much more reasonable to reduce the currency when there is a decline in the quantity of commodities. If the value relationship between currency and other things is upset by a decline in the quantity of other things, it certainly will not be restored by increasing the quantity of currency. But though the importance of changes in the amount of commodities available was obviously no argument for increasing currencies, it is worth while to ask whether in treating of the causes of the rise and fall of prices in general, we do not require to take more account of such changes than has been taken in the earlier part of this book. It may be argued that as the value of everything is reckoned by the quantity of other things for which it exchanges, the quantity available of all such things is just as important as the quantity of the thing itself. Iron or wheat, while remaining available in the same quantity as before, mav rise in value because other

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