The Theory of International Trade, With Some of Its Applications to Economic Policy
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Though they are reducible to one general head, it is easier to treat them as consisting of two distinct classes: — (1) Where a sudden demand for gold for exportation occurs, or is expected to occur, in a country with an inconvertible paper -currency which is not depreciated. The price of foreign bills may, under these circumstances, go far above specie -point, since they give the power of obtaining legal tender abroad, and thus obviate the ^ Tooke-Newmarch, Misiory of Prices, vol. ti. p. 682. F...or a some- what similar case, in the exchange with China in 1856, see ibid. p. 685.
88 THEORY OF INTERNATIONAL TRADE chap.
need of gold, which has become — owing to the prob- ability of its being demanded for exportation — a highly -valued commodity. The sudden rise in the exchanges in 1815, mentioned by Mill,^ is a good illustration of this set of cases. (2) The position of inconvertible paper-currencies, which have been depre- ciated from excessive issue, or from discredit, is closely akin to the first and more limited case.
What to read after The Theory of International Trade, With Some of Its Applications to Economic Policy?
You can find similar books in the "Read Also" column, or choose other free books by Charles Francis Bastable to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Though they are reducible to one general head, it is easier to treat them as consisting of two distinct classes: — (1) Where a sudden demand for gold for exportation occurs, or is expected to occur, in a country with an inconvertible paper -currency which is not depreciated. The price of foreign bills may, under these circumstances, go far above specie -point, since they give the power of obtaining legal tender abroad, and thus obviate the ^ Tooke-Newmarch, Misiory of Prices, vol. ti. p. 682. F...or a some- what similar case, in the exchange with China in 1856, see ibid. p. 685.
88 THEORY OF INTERNATIONAL TRADE chap.
need of gold, which has become — owing to the prob- ability of its being demanded for exportation — a highly -valued commodity. The sudden rise in the exchanges in 1815, mentioned by Mill,^ is a good illustration of this set of cases. (2) The position of inconvertible paper-currencies, which have been depre- ciated from excessive issue, or from discredit, is closely akin to the first and more limited case.
What to read after The Theory of International Trade, With Some of Its Applications to Economic Policy?
You can find similar books in the "Read Also" column, or choose other free books by Charles Francis Bastable to read onlineMoreLess
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