Showing papers on "Currency published in 1974"
TL;DR: The monetary role of government is agreed to include, at a minimum, the monopolistic supply of a currency, into which all privately supplied demand deposits should be convertible as mentioned in this paper, which is the same as the role of a bank.
Abstract: FEW AREAS OF ECONOMIC AcTIvrrY can claim as long and unanimous a record of agreement on the appropriateness of governmental intervention as the supply of money.l Very early in our history money was recognized by policy makers to be "special," and individuals fearful of government influence in other areas of economic life readily acknowledged that government had a primary role in controlling monetary arrangements. Free market advocates who now argue for, among other things, unregulated entry and the elimination of all interest rate and portfolio restrictions do not opt for a completely unregulated money industry, but recognize that money has unique characteristics which require that it not be supplied freely as an ordinary good. The monetary role of government is agreed to include, at a minimum, the monopolistic supply of a currency, into which all privately supplied demand deposits should be convertible. In
271 citations
TL;DR: In Australia, reserve flows are an important factor, and occasionally a dominant one, in determining changes in the domestic stock of money as discussed by the authors, and this observation raises the question, what are the major determinants of Australian reserve flows and what role, if any, do policy actions play in affecting reserve flows?
Abstract: THE BALANCE of payments in an open economy plays an important role in determining changes in the stock of domestic money. International reserve inflows, for example, will increase the domestic stock of money if they are added directly to the money balances of residents, or if they are exchanged for domestic currency at the central bank.1 In Australia, reserve flows are an important factor, and occasionally a dominant one, in determining changes in the domestic stock of money.2 This observation raises the question, what are the major determinants of Australian reserve flows and what role, if any, do policy actions play in affecting reserve flows? Models of open economies that include a market for money have been developed by R. A. Mundell (1968, 1971), H. G. Johnson (1972), A. B. Laffer (1968), R. Komiya (1969), J. Frenkel (1971), and R. Dornbusch (1971), among others. These models suggest two equivalent ways of describing a reserve flow. One asserts that reserves flow in when residents demand less goods, services, and non-monetary assets from non-residents than non-residents demand from them, and the converse. The other description says that reserves flow in when residents desire to accumulate money balances faster than the rate at which policy actions and other domestic factors are increasing the stock of money. This highly simplified characterization implies that reserve flows result from the states of equilibrium in all non-monetary markets or, equivalently, from the state of equilibrium in the money market. In this paper the latter, and simpler, approach is taken. Reserve flows are related to factors determining growth in demand for money, and to policy and other domestically determined factors that contribute to growth in the stock of money. This money-market approach to the balance of payments is a slightly modified version of a model developed by H. G. Johnson (1972).
34 citations
TL;DR: The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many as discussed by the authors, and many reasons have been advanced to explain this change, some of them logical, and some not.
Abstract: The sharp rise in the rate of inflation in 1973, after two years of diminishing rates, was a great surprise to many. What was the primary cause? Many reasons have been advanced to explain this change, some of them logical, and some not. Most of the explanations are based, in one way or another, on the basic cause of inflation: too much money chasing too few goods. It is well known that the Federal Reserve has powerful tools to increase or decrease the amount of money in circulation, thus causing it to turn on or shut off the spigot that regulates the degree of inflation. The only trouble is that sometimes other factors are present that nullify these efforts. Thus, for instance, the unusually gigantic exports of farm products to Russia, Poland, China and other countries threw the efforts of the Fed higher than a kite. For many years it was difficult for this country to keep down farm production, and farm prices were too cheap. Suddenly shortages developed, caused by (1) poor crops all over the world, except in this country; and (2) greater buying power abroad because of the cheapness of the dollar caused by two devaluations. Undoubtedly this had great influence in the sharp, sudden rise, first of farm products and later of other goods, as other nations suddenly found themselves able to convert their own currency into more dollars, and at a time when inflation was rising abroad. But another explanation has been advanced by many knowledgeable economistsseemingly unknown to Congress and to the majority of the voting public-which puts the primary blame on federal budget deficits. This is quite logical since deficits greatly increase the amount of money in the hands of the public.
34 citations
TL;DR: The Second Bank of the United States (BUS) as mentioned in this paper was the pre-eminent banking institution of its period, and its historical prominence is derived primarily from the emphasis that has been placed on its role in the Bank War.
Abstract: The Second Bank of the United States, a public bank chartered by the Congress in the early part of 1816, was the pre-eminent banking institution of its period. Its historical prominence, however, is derived primarily from the emphasis that has been placed on its role in the Bank War—a major political controversy of the nineteenth century. Certainly, the legacy of that struggle, that is, its impact on American political and economic institutions, transcends the importance of the operations undertaken by the BUS in the more normal years that preceded the Bank War. Nevertheless, because of the extent of its influence on the American economy during its tenure, the economic character of BUS operations during its earlier years also deserves the attention of the economic historian. By the close of the 1820's, its operations touched virtually every aspect of the nation's economic life—ranging from its role as the largest single issuer of bank notes to the development of financial arrangements that played an instrumental role in the conduct of interregional and international trade. In addition, the Second Bank carried out under the provisions of its charter a variety of quasi-governmental functions— including the imposition of a uniform national currency. In the course of its emergence in the 1820's, then, the Second Bank forged a set of institutional arrangements that had an important impact on the nation's economic activity throughout the remaining years of its tenure.
27 citations
Book•
01 Jan 1974
TL;DR: Wang et al. as mentioned in this paper found that many people may love to read, but not a book, and this is the real condition of reading habits of many people, they will be bored to open the thick book with small words to read.
Abstract: What do you do to start reading banking and currency in hong kong a study of postwar financial development? Searching the book that you love to read first or find an interesting book that will make you want to read? Everybody has difference with their reason of reading a book. Actuary, reading habit must be from earlier. Many people may be love to read, but not a book. It's not fault. Someone will be bored to open the thick book with small words to read. In more, this is the real condition. So do happen probably with this banking and currency in hong kong a study of postwar financial development.
25 citations
TL;DR: In this paper, it was shown that if a country imposes a 10 percent duty on all imports and a subsidy on all exports, this is equivalent to a 10% devaluation of its currency insofar as its commodity trade is concerned, this will have no effect on the balance of trade unless and until it is offset by a 10 % revaluation of the currency or a general 10 percent inflation of all its domestic money prices and costs.
Abstract: If a country imposes a 10 percent duty on all imports and a 10 percent susbsidy on all exports, this is equivalent to a 10 percent devaluation of its currency insofar as its commodity trade is concerned. This will have an effect on the balance of trade unless and until it is offset by a 10 percent revaluation of the currency or a general 10 percent inflation of all its domestic money prices and costs. It will then have no effect upon the quantities of production, consumption, import, or export of any commodity. Its only effect will be a monetary one on the rate of exchange between the domestic currency and foreign currencies or on the general level of prices and costs in terms of the domestic currency. This well-known proposition can be extended to cover a group of countries. Consider three countries-A, B, and C. Suppose that A and B (having perhaps formed an economic union) agree to impose a 10 percent duty on imports from C and a 10 percent subsidy on exports to C without taxing or subsidizing their imports from and exports to each other. If A's and B's currency both appreciate by 10 percent in terms of C's currency, or if A's and B's domestic money price and cost levels both go up by 10 percent relatively to C's domestic money prices and costs, there will be no real effect on any quantity of any commodity produced, consumed, or traded. The proposition can then be further extended by combining the two ideas expressed in the preceding two paragraphs. Imagine the following sequence of events. 1. First A imposes a border-tax adjustment of tbc on its trade with B
22 citations
TL;DR: In the 1970s, the disarray in the international monetary system since the currency upheavals of 1971 has generated greatly increased interest on the part of the less developed countries in its functioning and reform as discussed by the authors.
Abstract: The disarray in the international monetary system since the currency upheavals of 1971 has generated greatly increased interest, on the part of the less developed countries, in its functioning and reform. The 1972 UN Conference on Trade and Development provided a forum within which this new interest was first vigorously expressed and agreement as to increased Third World participation in the international deliberations which aimed at the reconstruction of the Bretton Woods system was there achieved. Spokesmen for the less developed world were to be found in the IMF’s ‘Group of Twenty’, arguing anew the merits of the old proposal for linking development assistance with the creation of increased liquidity, in the form of special drawing rights (SDRs) at the International Monetary Fund (IMF). At the same time the less developed countries formed their own monetary discussion group—the ‘Group of Twenty-four’ (eight representatives from each of Africa, Asia and Latin America)—to promote their joint interests in a monetary world in which the key decisions have typically been made without consideration for them.
19 citations
TL;DR: This paper developed and estimated a reduced form which takes some steps toward meeting the above objections, and which hopefully sheds some new light on the relative importance of monetary and fiscal influences on economic activity.
Abstract: IN recent years there has been a rapidly growing interest in the relative efficacy of monetary policy vis-a-vis fiscal policy as a vehicle for achieving economic stability and regulating economic activity. Several widely discussed empirical studies of this issue have used GNP as the dependent variable in a single-equation least-squares regression with various measures of monetary and fiscal policy as independent variables.' One common objection to this approach is that it is not clear what the structural model is from which this so-called reduced form equation is derived. Another obvious criticism is that the various contemporaneous (as opposed to lagged) measures of fiscal and particularly monetary policy may be significantly influenced by movements in the dependent variable, GNP, thus violating one of the basic assumptions underlying the singleequation least-squares procedure. The major purpose of this paper is to develop and estimate a reduced form which takes some steps toward meeting the above objections, and which hopefully sheds some new light on the relative importance of monetary and fiscal influences on economic activity. By disaggregation and the use of a reduced form framework generically related to that of an earlier study of man-hour behavior (Waud 1968), we seek to reduce the possibility of reverse causation and thereby the problem of single-equation least-squares bias in examining this issue. On the basis of the empirical findings reported here, fiscal influences and monetary influences on economic activity are both significant and appear equally important. Hence our findings are in sharp contrast to those of Andersen and Jordan (1968, 1969), for example, and certainly do not support the contention that monetary influences are much stronger than fiscal influences -a notion which seems to have gained much currency in recent years. In section I the rationale and framework for the analysis is presented. Section II discusses the various measures of monetary and fiscal influences, as well as the problem of bias which may plague studies which use a single-equation least-squares framework to examine the relative importance of monetary and fiscal influences. The estimation of the model is discussed and the results presented in section III. Concluding remarks are made in section IV.
15 citations
TL;DR: In this article, the authors used the evidence from various series and types of currency to improve the published figures on currency in circulation by estimating the amount of currency lost, which is done by establishing a relationship between currency losses and the real value of currency notes.
Abstract: IN RECENT YEARS economists have devoted a great deal of attention to the behavior of various measures of liquid assets. Many such measures include currency in circulation as one of their components. The purpose of this paper is to improve the published figures on currency in circulation by estimating the amount of currency lost.1 This is done by establishing a relationship between currency losses and the real value of currency notes. Currency in circulation is defined as the total amount of currency outstanding less currency holdings of the Treasury and Federal Reserve banks. Data on currency outstanding are obtained by subtracting the total quantity of currency redeemed from the total quantity of currency issued. Currency in circulation is thus overstated by the amount of currency lost.2 This paper will use the evidence from various series and types of currency
TL;DR: The possession of a few copper cents [in 1862] meant that the owner could ride [the street car] rather than walk as discussed by the authors, and it meant that he could buy a postage stamp without an altercation with the clerk, or a cigar without receiving in change a handful of the dealer's own manufactured currency.
Abstract: The possession of a few copper cents [in 1862] meant that the owner could ride [the street car] rather than walk…. It meant that he could buy a postage stamp without an altercation with the clerk, or a cigar without receiving in change a handful of the dealer's own manufactured currency.
01 Jan 1974
TL;DR: The Basel meeting of the central bankers marked the beginning of an awakening by the European Economic Community to the necessity of world monetary reform as mentioned in this paper, and the Community finally, and long after the proverbial horse had bolted from the stable, pressed the United States to defend its own currency.
Abstract: The Basel meeting of the central bankers marked the beginning of an awakening by the European Economic Community to the necessity of world monetary reform. The Community finally, and long after the proverbial horse had bolted from the stable, pressed the United States to defend its own currency. The pressure was of a persuasive nature, since the central banks of the EEC and other central banks made arrangements with the BIS whereby the existing swap arrangements would be increased by $6250 million to $17,980 million — should the United States decide to defend its own currency. In fact, this persuasive pressure did bear rapid results, since the Federal Reserve Board started to intervene in the market to defend the dollar one day later, on 10 July.
01 Mar 1974
TL;DR: In this article, the influence of the world price of coffee on the exchange rate of the largest producer, Brazil, was studied and it was shown that an exchange rate which responds in a systematic manner to coffee prices becomes part of the system which determines, among other things, the prices of coffee itself.
Abstract: IT is well known that changes in world prices of primary commodities are important determinants of changes in exchange rates of producing countries. While reduced demand for any country's exports might be expected to lead to a less favourable balance of payments position, two factors often combine to intensify the link between world product prices and rates of exchange for primary producers: 1. Inelastic demand for the product, creating a link between world prices and revenue in foreign currency from exports. 2. Export concentration. Many primary producers are highly specialized, receiving the bulk of their foreign exchange from just one or two staple exports. This situation is, of course, especially common among the underdeveloped primary producers.' The purpose of this paper is to attempt to gauge the quantitative importance of the above effect for one case: the influence of the world price of coffee on the exchange rate of the largest producer, Brazil.2 There are three reasons why such measurements may be of interest: 1. An exchange rate which responds in a systematic manner to coffee prices becomes part of the system which determines, among other things, the price of coffee itself. It is necessary when examining price formation in world coffee markets to take into account such rate responses since the rate forms a link between producers and consumers.3 2. Exchange rate movements are one of the routes whereby fluctuations originating in one sector of an economy are spread throughout the economy. This has been a frequent theme in discussions of mono-export
TL;DR: In this paper, the United States had to resort to this device as a consequence of the dollar glut, and European countries were gradually compelled to hold on to 20 billion dollars, receiving short-term interest rates for what were in fact long-term loans to America, with capital and interest losses over 13 years of 9 billion of 1972 dollars.
Patent•
15 Apr 1974
TL;DR: A folded, wallet-type display of relative currency values is presented in this paper, which involves the use of removably attachable currency strips whose position relative a window in the display can be changed to reflect fluctuations in exchange rates.
Abstract: A folded, wallet-type display of relative currency values. The display involves the use of removably attachable currency strips whose position relative a window in the display can be changed to thereby reflect fluctuations in exchange rates. In a preferred form, logarithmic currency scales adjacent the display window and logarithmic currency scales on the movable currency strips permits currency conversion by direct visual comparisons between corresponding units of two different currencies.
Journal Article•
TL;DR: In this paper, the applicability of purchasing-power parity theory to movements in the exchange rates between the Yugoslav dinar and two West European currencies during the 1950s and 1960s was examined.
Abstract: This study tests the applicability of purchasing-power parity theory to movements in the exchange rates between the Yugoslav dinar and two West European currencies during the 1950s and 1960s. The purpose is to determine whether these exchange rates were administered without regard to underlying economic conditions, as is commonly thought, or whether they actually reflected changes in economic fundamentals within the selected countries. Although an absence of accessible, appropriate data precludes an examination of currency exchange rates and purchasing powers within Eastern Bloc countries, one of these Socialist countries, Yugoslavia, has been introducing market-oriented reforms more rapidly than other countries in Eastern Europe and has produced a set of economic statistics more readily comparable with those of Western countries. These developments provide an opportunity to examine the exchange rates between this one East European currency and Western currencies. 1 Accordingly, this study examines the exchange rates between the currency of Yugoslavia and those of her major Western trading partners, Italy and West Germany. The framework for analysis is the purchasing-power parity theory, which holds that the equilibrium exchange rate between two currencies is determined primarily by their relative purchasing powers.2 The theory became widely known following World War I, when it was formulated and expounded by Gustav Cassel. Cassel originally contended that
01 Sep 1974
TL;DR: In this article, the authors argue that the ideal international monetary arrangement would be permanently fixed exchange rates with fully convertible currencies (no controls) and preferably no margin, provided the system does not impose too much inflation or deflation (unemployment) on any country.
Abstract: So much has been written and is currently being written on the future of the international monetary system, that it is impossible to read everything and to say anything new. Moreover things are changing all the time, often very fast and unexpectedly, so that what one says today may appear to be out of date tomorrow. In such a situation it is, I believe, a good idea to go back to fundamental principles which are often lost sight of, although they often are a safer guide for things to come than the extrapolation of recent trends. Let me start from a proposition on which in my opinion most economists, advocates of floating as well as of fixed or "stable but adjustable" exchange rates could agree: The ideal international monetary arrangement would be permanently fixed exchange rates with fully convertible currencies (no controls) and preferably no margin, provided the system does not impose too much inflation or deflation (unemployment) on any country. This is the arrangement which we have inside each country including the largest. Nobody, not even the most radical floater, has recommended that the United States should be split up into different currency areas. I need not take time to explain the immense advantage which the U. S. economy derives from having a unified currency, because that has been done many times by advocates of fixed exchange rates, such as Charles Kindleberger and Robert M und ell as well as by some floaters such as Allan Meitzer. Naturally the smaller a country the more important a stable exchange rate and very small countries, Liechtenstein, Monaco but even Luxemburg have virtually no choice but to link up rigidly with the currency of a large neighbor.
TL;DR: However, the position of France is being challenged on two fronts: 1) Independence no longer allows France to integrally retain these countries as its own personal fiefdom; and 2) African nationalism is increasingly coming from governments which previously had been very much in alignment with French policies as discussed by the authors.
Abstract: Independence, granted in 1960, only superficially altered the institutional ties which are the foundations of French economic, political and cultural domination in his former dependencies in tropical Africa. Membership in the franc zone (which gives to the French Government de facto control over currency, investments and foreign trade) plays a decisive role in this dominance.However, the position of France is being challenged on two fronts: 1) Independence no longer allows France to integrally retain these countries as its own personal fiefdom. France has had to give place to intrusions (aid, investment, technical assistance) on the part of allied and rival great powers (U.S.A., Common Market members).2) African nationalism is demanding real independence and this demand is increasingly coming from governments which previously had been very much in alignment with French policies.
TL;DR: In this paper, a broad range of problems posed by the Comprehensive Program of Socialist Economic Integration (CPEIN) are addressed, including the problem of the intensification of the interdependence of internal and for-eign trade prices.
Abstract: Among the broad range of problems posed by the Comprehensive Program of Socialist Economic Integration is the problem of the intensification of the interdependence of internal and for - eign trade prices. "In the establishment of economically substantiated exchange rates or coefficients of national currencies, countries will resolve questions pertaining to the relationship between internal wholesale and foreign trade prices in accordance with their potential and conditions." (1) As the formulation indicates, this problem (1) pertains primarily to the internal national competence of individual socialist countries; and (2) the resolution of the problem is directly coordinated with the action of currency categories.
Patent•
08 Jan 1974
TL;DR: In this paper, a secure money changing and money receiving system for convenience establishments and the like includes a safe, a money changing apparatus, and a money receiving apparatus, including a theft proof housing and a normally locked access door.
Abstract: A secure money changing and money receiving system for convenience establishments and the like includes a safe, a money-changing apparatus, and a money receiving apparatus. The safe has a theft proof housing and a normally locked access door, and the money-changing apparatus has a theft proof housing which is attached to the housing of the safe. The money receiving apparatus includes a theft proof housing having at least one window and includes a partition which separates the housing into coin and currency receiving portions. A pair of doors are provided for normally retaining coins and currency in the coin and the currency receiving portions of the housing, respectively, and for selectively permitting the coins and the currency to pass into the safe. Thus, all of the money that is on the premises of the convenience establishment is situated either in the safe or in the change-making apparatus and is therefore totally secure from theft.
TL;DR: Exchange-rate union in the EEC would involve member countries surrendering a key instrument of economic policy, which is unlikely to find acceptance in the foreseeable future, because of the inadequacy on the one hand of substitute instruments (control of wages and prices; mobility of factors of production; regional policy) and on the other hand of compensating benefits as mentioned in this paper.
Abstract: Exchange-rate union in the EEC would involve member countries surrendering a key instrument of economic policy. This is unlikely to find acceptance in the foreseeable future, because of the inadequacy on the one hand of substitute instruments (control of wages and prices; mobility of factors of production; regional policy) and on the other hand of compensating benefits (elimination of intra-European exchange risk and currency speculation; reduced costs of money-changing; greater immunity to US monetary conditions). The world currency situation points the way to a looser form of monetary association, a European currency bloc not committed to exchange-rate unification internally.
TL;DR: The concept of money is defined in this article, the monetary system, its organization and incidents monetary obligations -types and payment, the extent of liquidated sums (nominalism), unliquidated amounts methods of excluding the effects of nominalism, the general position of foreign money and foreign money obligations in English law, the determination of the money of account the nominalistic principle, its scope, incidents and effects, the payment of inter-state obligations, the institutions of legal proceedings and its effect uponforeign money obligations exchange control under the IMF Agreement the private international law of exchange control
Abstract: The concept of money the monetary system, its organization and incidents monetary obligations - types and payment, the extent of liquidated sums (nominalism), unliquidated amounts methods of excluding the effects of nominalism the general position of foreign money and foreign money obligations in English law the determination of the money of account the nominalistic principle, its scope, incidents and effects, the payment of foreign money obligations the institutions of legal proceedings and its effect upon foreign money obligations exchange control under the IMF Agreement the private international law of exchange control the valuation of foreign currencies monetary sovereignty, its scope and its limitation the protection of foreign currency systems patterns of monetary organization treaty rules of monetary conduct the monetary law of inter-state obligations
01 Jan 1974
TL;DR: The monetary systems of the former British territories have highly varied histories, but their fundamental features are the same as mentioned in this paper, and they have a common structural pattern because they all emerged from a larger currency and banking system of which the United Kingdom was the centre.
Abstract: The monetary systems of the former British territories have highly varied histories, but their fundamental features are the same. They have a common structural pattern because they all emerged from a larger currency and banking system of which the United Kingdom was the centre.
Posted Content•
01 Jan 1974
TL;DR: In this paper, the authors discuss the effect of currency inflation on revenue in a country involved in a war and propose a solution to the problem of inflationary issue of currency in currency printing.
Abstract: Wars are generally characterized by inflationary issue of currency. War is a costly affair which makes excessive demands on the resources of a country so that a large part of the productive apparatus has to be geared to the war needs. The government of a country involved in war has to find new sources of finance to cover the high costs of labour and materials for the war effort which does not satisfy the civilian needs. Initially, the government would resort to heavier taxation coupled with the floating of loans to raise more revenue. But the total cost of war is very heavy and the revenue accruing to the state through sources docs not suffice. Taxation, one of the sources of increased revenue, cannot be increased to any level because too heavy a tax can affect the ability and desire to work and save, and thus have adverse affect on production. So in order to obtain additional resources from the society the government would have to resort to printing more currency or borrow from the central bank against its own securities. Both these sources of increased revenue have an inflationary effect.
TL;DR: In this article, the authors studied the temporal distribution of the imperial coinage recovered at fourteen eastern sites (including Aphrodisias) for the period from roughly the time of Aurelian until the monetary reform of Diocletian and Maximianus, and to a lesser extent, Tacitus.
Abstract: The marked predominance of western, European mints over the eastern, Asian mints in the period from Gallienus through Quintillus is surprising, as is the presence of a significant number of Gallic barbarous imitations.2 The scarcity of any imperial currency from roughly the time of Aurelian until the monetary reform of Diocletian is also unexpected and may be related to the employment of an unusual amount of western coinage. Elsewhere coinage of the eastern mints under Gallienus and Claudius II Gothicus survives in great quantities, and the coinage of Aurelian, Probus, and the family of Carus, and the early years of Diocletian and Maximianus, and, to a lesser extent, Tacitus, is generally common also. The number of coins from Aphrodisias is large enough so that it is most unlikely that these coinages would be so ill represented if they actually circulated in any quantity at Aphrodisias. Other excavation sites provide some material for comparison with the Aphrodisias finds. The following chart shows the temporal distribution of the imperial coinage recovered at fourteen eastern sites (including Aphrodisias) for the period from the