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More freely); number 0.997 will tell that they can relax slightly and To expand sales. influence of such reduction or expansion Issues on the prices of the goods will be mainly indirect - through exchange Exchange rates for which, basically, these goods are on sale and bought. It Will be to straight lines only for the goods which are on sale and bought Mainly for it. Table II. An illustration of the scheme of stabilisation of currency
The goods Quantity Currency in which the goods the Price in this are quoted
To currency the Exchange rate the Price in our currency
Aluminium x tons $ * * *
Beef * Pounds sterling * * *
Camphor * Dukaty - - *
Cocoa * * * * *
Coffee * * * * *
Coal * * * * *
Coke * * * * *
Copper * * * * *
it * * * * *
Corn * Dukaty * * *
Etc. * * * * *
In total 1.000
The same signal should move at a currency stock exchange and if the bank has created to itself
Reputation of the establishment capable on fast and effectual measures on correction
Any deviations, its efforts will be promoted by increase of demand for it
Currency when course increase in conditions, when value of its currency is expected
Below normal (1.002 on the table), or on reduction in demand when it is expected
Small fall of a course (the number has fallen to 0.997). Clearly that such policy at
Its consecutive carrying out should reduce fluctuations of value of currency
Concerning the selected commodity standard to very narrow range.
Determinative: demand for currency
It is represented doubtless that in conditions when the bank understands value
Readiness of public to hold its currency, and, means, and its business, and also
Understands that this readiness depends on preservation of value of its currency, it
Will be not only is capable, but also it is compelled to reach this result with the help
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