Monetary Reform |
Common terms and phrases
adjustment amount April arbitrage balance Bank of England bank rate bank-rate borrow Britain capital cash cent per annum chapter commodities countries country's Currency Note debt Deflation depreciation economic effect equation of exchange equilibrium fact fall Federal Reserve Board fixed fluctuations forward dollars forward exchange France Germany gold reserves gold standard Government hand Hesperides income increase index number inflation influence internal price level Irving Fisher June Levy London ment method monetary money rate movement Nevertheless note issue period practice pre-war parity production profit proportion purchasing power parity quotations raise rate of exchange rate of interest real rate reason Reichsbank relative rency rentier restoration result rise risk speculative spot and forward stability of prices standard of value sterling sterling prices store of value taxation tion trade transaction Treasury United value of gold value of money volume wealth whilst
Popular passages
Page 34 - Thus inflation is unjust and deflation is inexpedient. Of the two perhaps deflation is, if we rule out exaggerated inflations such as that of Germany, the worse; because it is worse, in an impoverished world, to provoke unemployment than to disappoint the rentier.
Page 76 - Let us suppose that the inhabitants of a country, taken one with another (and including therefore all varieties of character and of occupation), find it just worth their while to keep by them on the average ready purchasing power to the extent of a tenth part of their annual income, together with a fiftieth part of their property; then the aggregate value of the currency of the country will tend to be equal to the sum of these amounts.
Page 157 - Since, subject to certain qualifications, the rate of exchange of a country's currency with the currency of the rest of the world (assuming for the sake of simplicity that there is only one external currency) depends on the relation between the internal price level and the external price level, it follows that the exchange cannot be stable unless both internal and external price levels remain stable. If, therefore, the external price level lies outside our control, we must submit either to our own...
Page 185 - ... credit as felt by the banks, the rate of interest on investments of various types, the volume of new issues, the flow of cash into circulation, the statistics of foreign trade and the level of the exchanges must all be taken into account. The main point is that the objective of the authorities, pursued with such means as are at their command, should be the stability of prices.
Page 77 - What is the proportion which the circulating money of any country bears to the whole value of the annual produce circulated by means of it, it is, perhaps, impossible to determine.
Page 31 - ... bull" position, and this means that entrepreneurs will be reluctant to embark on lengthy productive processes involving a money outlay long in advance of money recoupment, — whence unemployment. The fact of falling prices injures entrepreneurs; consequently the fear of falling prices causes them to protect themselves by curtailing their operations...
Page 33 - Thus a comparatively weak initial impetus may be adequate to produce a considerable fluctuation. The best way to cure this mortal disease of individualism must be to provide that there shall never exist any confident expectation either that prices generally are going to fall or that they are going to rise ; and also that there shall be no serious risk that a movement, if it does occur, will be a big one. If, unexpectedly and accidentally, a moderate movement were to occur, wealth, though it might...
Page 1 - As in other respects, so also in this, the nineteenth century relied on the future permanence of its own happy experiences and disregarded the warning of past misfortunes. It chose to forget that there is no historical warrant for expecting money to be represented even by a constant quantity of a particular metal, far less by a constant purchasing power. Yet Money is simply that which the State declares from time to time to be a good legal discharge of money contracts. In 1914 gold had not been the...