Knut Wicksell: Selected Essays in Economics - Vol. 2

By Knut Wicksell; Bo Sandelin | Go to book overview

NOTES
1
The rate of exchange is the number of Swedish crowns per unit of foreign currency, so that its ‘decline’ is a mark of the crown’s increasing strength, and is therefore ‘gratifying’ (translator’s note).
2
During the debate on the investment of the cash funds held by the National Debt Office, a speaker in the Second Chamber claimed (21 April this year [1915]) that ‘we have surely hardly known a time when it has been as easy to take in gold as it is just now’. This seems paradoxical, since of course as matters now stand, gold cannot possibly enter our country in the way of normal payment. It cannot come from Western Europe (or America), since the exchanges there are against us, and if anyone in Germany wants to dispose of gold in order to pay a debt in Sweden, it is bound to be cheaper for him to send this gold to Amsterdam, for example, and buy bills of exchange on Sweden there. Some form of premium must therefore have been paid for the gold that has been ‘taken in’ here, and of course this may have been worthwhile if the gold was destined to move onwards, e.g. to England. But in that case, it ought to have been possible to acquire gold from Germany all the more safely and at no additional expense if the exchange rates had been allowed to follow their natural course—by the opening of the Bank’s counters to the redemption of notes. The same speaker was full of praise for the practice of keeping an extra gold reserve at the National Debt Office, which he said would ‘enable the State to make its foreign payments and to export gold for this purpose without this being evident from the records (my italics), a fact that according to this speaker ‘may have very great significance in certain specific situations’. Openness in matters of business does not appear to be at a premium at present!
3
According to Memorandum No. 1 published by the Standing Committee on Banking, the book value in crowns of the Riksbank’s foreign balance was approximately 114 million crowns on 30 June 1914, which included approximately 94 million Reichsmark, but according to figures given by Cassel in Sv. Dbl. (national edition, 23 April 1915), by 25 July 1914, that balance had risen to no less than 143.6 million crowns, ‘placed overwhelmingly in Reichsmarks’. At the end of the year, the Riksbank’s total foreign balance came to approximately 51 million crowns, including approximately 48 million Reichsmark. Admittedly, these figures do not make it clear with any certainty how large amounts of our mark balances were converted into other currencies in the manner described above, nor does the memorandum provide any information about this elsewhere. At any event, the sums involved must have been very substantial if Governor Moll’s statement that we have large exports to Germany and few imports from there at present (Sv. Dbl. national edn, 25 April 1915) is also approximately true of the preceding period of the war.
4
At any event, it is surely obvious, at least, that the facts of the matter cannot be as stated by Mr Moll in this connection, namely, that ‘the exchange rate against a given currency is determined by our balance of trade with the country in question (my italics). For this would require the complete absence of exchange arbitrage, which would be at odds with Mr Moll’s explicit assurance regarding conditions even during the war.
5
In order to be fully effective, the interest rate policy pursued by the central bank ought to be supported by the other banks, the so-called open market. Governor Moll notes, not without reason, that the discount market is disorganized at present, even in England, the interest rates on the open market having stood well below the rate of the Bank of England ever since war broke out, and seeming on the whole to be unaffected by it. In normal circumstances, as is well known, in such cases the

-69-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Knut Wicksell: Selected Essays in Economics - Vol. 2
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 248

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.