Modern monetary systems

Bibliographic data

Monograph

Identifikator:: 885364031

URN:: urn:nbn:de:zbw-retromon-4554

Document type:: Monograph

Author:: Hölscher, Georg http://d-nb.info/gnd/116927453

Title:: Hundert Jahre J.P. Bachem, Buchdruckerei, Verlagsbuchhandlung, Zeitungsverlag

Place of publication:: Köln

Publisher:: Verlag und Druck von J.P.Bachem

Year of publication:: 1918

Scope:: 1 Online-Ressource (XVIII, 302 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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

TO DISCOVER A STABLE STANDARD 199 The working of the gold exchange standard, on which Mr. Fisher relies, has nothing in common with his system. It is true, of course, that gold which is not in circulation, or at least not in internal circulation, plays the part of a standard in the sense described above, i.e., it is a common monetary basis as between countries whose monetary units are directly or indirectly defined as corresponding to a given weight of gold and in which that given weight of gold is accepted for the number of monetary units thus fixed. It is also true that this system, under which exchange stability is secured, also confers upon internal prices that approximate stability which exists in countries where the exchange is contained within the limits of the gold points and where the circulation is not subject to very wide variations. Finally, it is true that gold being an international standard may also serve as a measure of internal prices since the goods within a country are sold for instruments of exchange which them- selves stand at a constant parity with gold. Finally, it is perfectly true that if this parity were changed, and with it the theoretical content of gold in the internal currency, internal prices would be more or less affected. Butisitsuffi- cient to admit the part played in this system by gold, which is invisibleand absent from the internal circulation, in order to arrive at a favourable judgment of Mr. Fisher’s plan? Certainly not. We shall see this when we come to examine more closely the way in which the gold exchange standard reacts on prices. This system presupposes in general a constant ratio between the monetary unit and the amount of gold repre- sented by it. When, as a result of exceptional circum- stances, the parity has to be changed, there also takes place a change in the ratio of the national monetary unit and foreign monetary units. The Indian rupee, for instance, represented in accordance with the law of 1893 one- fifteenth of a sovereign, that is to say of the weight of gold contained in one pound sterling, and it actually was worth one-fifteenth of a sovereign from the time when it could in fact be converted at this rate and as long as this con- vertibility lasted. In 1920 the parity was changed and the

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation