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

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Further elucidations

Collection:: Economics Books

74 MONEY in the total stock which we have agreed to call the supply, whereas, having actually been destroyed, they no longer appear in the total. Consequently, it is more convenient to follow ordinary usage in this matter, and speak of banks and governments which buy up and burn currency as reducing the supply. The analogous case in regard to houses is when houses are bought up by some person or institution for demolition. We think of this as causing a reduction of supply rather than an increase of demand. To clear up our ideas about the demand for currency, let us think of a few obvious causes of increase and decrease of demand for it. The most obvious cause of increase of demand for a currency is an increase in the number of persons who use it. At a very early age—often at his or her christening—each new member of the human race begins to hold a small quantity of currency, and the child of six sometimes has more than his father or mother. There are plenty of examples of increase of demand from this source having been sufficient to cause a noticeable increase in the value of a currency which is limited in amount—the Indian rupee after the closing of the Indian mint and the American greenback are often quoted, and the general increase of gold and silver-using populations, though it has not actually raised the value of gold and silver currencies, has at any rate obviously prevented them from falling as fast as they would otherwise have done. The great rise of prices after the Black Death may be given as an example of the converse effect of diminution of population in diminishing the demand for, and consequently the value of a currency. The introduction of anything which economizes currency, i.e. which makes it unnecessary for people to keep so much currency by them on the average, tends to diminish the demand for currency. The

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