Modern monetary systems

Bibliographic data

Monograph

Identifikator:: 1753210836

URN:: urn:nbn:de:zbw-retromon-128414

Document type:: Monograph

Author:: Nogaro, Bertrand http://d-nb.info/gnd/117039713

Title:: Modern monetary systems

Place of publication:: London

Publisher:: King

Year of publication:: 1927

Scope:: XII, 236 S.

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Modern monetary systems and their operation

Collection:: Economics Books

THE MONETARY CRISIS 23 PERCENTAGE OF INCREASE COMPARED WITH THE PREVIOUS QUARTER. Sept. 30, Dec. 31, io June 30, ! Sept. 30, | Dec. 31, 1921. I 1. 1922. 1922. | 1iy2z. 1922. Note Issue . 11-89 29:6 A 257 84:2 290-2 Prices". WN51-4.5 68-7 BEEN 4 308-2 | 4139 bound up with those of the exchange, whereas both appear to be fairly independent of changes in the note issue. This observation, the theoretical consequences of which will be stated more fully, must be emphasised here, for it supple- ments, even if it does not invalidate, certain commonly accepted theories. Taking first price movements, we shall find a simple explanation of this phenomenon when we reflect that in a country the economic life of which is bound up with its foreign trade, the prices of imports and exports are directly dependent on the rates at which foreign bills are nego- tiated. A further and more complete explanation is given by the custom of fixing the majority of prices day by day in accordance with the rate of exchange in a country where depreciation is continuous, unlimited and always increasing. It is easy to understand, after this, how in- ternal prices become more and more closely connected with the rates for foreign exchange, and follow the spas- modic movements of international speculation, while changes in the note issue are thenceforward rhe result rather than tle cause of a rise in prices, even though they originally helped to bring about the exchange crisis. Once internal prices are swept along by the exchange movements, the number of monetary units required for every kind of transaction also increases. And inflation itself, always lagging behind the price movements, in reality merely attenuates the process of monetary contraction. It is 1 Figures given in the “Memorandum on Currency 1913-1922,” published by the League of Nations, February 1923, p. 15. Another table (p. 12) shows the movements of the note issue and of prices between 1919 and 1922 in another form. A basic index of 100 taken for both rises to 18,377 in the case of prices, and only to 2587 in the case of the note issue. 6G t

Access restriction

Copyright

Contents: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation