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- Title
BRITISH AND AMERICAN EXCHANGE POLICIES: II. THE AMERICAN EXPERIENCE.
- Authors
Harris, S. E.
- Abstract
The article focuses on the U.S. foreign exchange policy during 1933-34. The U.S. administration was successful in depressing the dollar in 1933. In October 1933 the gold buying policy was introduced as a means of depressing the dollar further. Disturbing exchange policies tended to unsettle business, however, with the result that sentiment in favor of some sort of stabilization became more powerful after October. The supporters of the gold buying policy had been impressed with the difficulty of controlling the value of gold in goods and the ease of controlling its price in dollars. The American Government buys gold at its official price and, in doing so, dumps dollars on the foreign exchange markets directly or through the intermediary of private purchasers. Prices rose in the U.S. for the year 1933 while they declined elsewhere; and production increased more rapidly in Great Britain than elsewhere. On the whole the developments in 1933 were favorable in the two countries operating with depreciated exchanges. It is to be recalled that conditions in Great Britain had improved relatively in the preceding year, and in 1933 continued improvement at the American rate was not to be expected.
- Subjects
UNITED Kingdom; UNITED States; FOREIGN exchange laws; COMMERCIAL law; ECONOMIC policy; FOREIGN exchange market; ECONOMIC structure
- Publication
Quarterly Journal of Economics, 1934, Vol 48, Issue 4, p686
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883547