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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Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Further elucidations

Collection:: Economics Books

THE DEMAND FOR CURRENCY ”* decreased demand for houses without finding any alteration in the number or size of houses. The effect of misguided speculation for the rise or fall of the value of a currency is disguised, so far as internal speculation is concerned, by taking the form, in each individual case, of speculation for the fall or rise of particular commodities. Very few persons grasp the idea of a rise and fall in the value of their own country’s money, and the Money Market is a place where you deal in loans, not in money. We have not yet risen to the height of having a Currency Market in which we can buy and sell future Board of Trade, Statist and other Index Numbers. But direct speculation in the currency of other countries is common enough, and is often ill-informed enough to cause great disturbances of values, instead of smoothing them down. Soon after the war, the editor of an Athens journal was unable to go to a certain restaurant there because the waiters worried him with questions about the future of Austrian crowns which they were holding. When the British troops first went to Cologne, they bought German marks because they saw that the mark was ‘lower than usual.” It is known that many milliards of the depreciated currencies are held by foreigners. Such holding is, of course, a pure addition to the usual demand for currency, and tends to maintain its value for a time. Eventually, however, the foreign holders decide to sell, and their decision is much more likely to come at a time when it will make a fall more precipitous than when it will moderate a rise. This ignorant speculation of foreigners has been the cause of many violent fluctua- tions of currency values and is a great support of the doctrine that they ‘depend on confidence.” About that we need not say more than that the price of sugar also is affected at any moment by people’s

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