Political economy

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Monograph

Identifikator:: 867647221

URN:: urn:nbn:de:zbw-retromon-93157

Document type:: Monograph

Author:: Chapman, Sydney John http://d-nb.info/gnd/123743141

Title:: Political economy

Place of publication:: London [u.a.]

Publisher:: Williams & Norgate [u.a.]

Year of publication:: 1912

Scope:: 1 Online-Ressource (255 Seiten)

Collection:: Economics Books

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158 POLITICAL ECONOMY of carriage) between the recorded imports and exports of the two countries would be inevitable. It would be inevitable because in international trade the only final form of payment must consist in goods, including bullion, or services. But actually equivalence is not to be found, because all the circum stances which have been ruled out of our hypothetical case exist in actual practice. The quantity of international loans is enormous, and for a substantial proportion of them Englishmen are responsible as lenders. When a foreign loan is made the exports of the lending country are stimulated, and so are the imports of the borrowing country. Imagine, for instance, that people in England invest £1,000,000 in Canadian industries. Then at first the quantity of money in England is diminished so that prices fall, and the quantity of money in Canada is increased so that prices rise. Consequently Canada becomes a good market to sell in and a bad market to buy in, while England becomes a good market to buy in and a bad market to sell in. Extra buying from and reduced selling to England, and extra selling to and reduced buying from Canada, continue until the level of prices in the two countries has been brought to the old level,

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