 Foreign ExchangeRoy Harrod Chapter 3 in Money, 1969, pp 66-94 from Palgrave Macmillan Abstract: Abstract As between two countries on the gold standard, the ‘ parity’ of exchange is fixed by the statutory gold content of each of the two currencies. Being on the gold standard was always taken to imply convertibility. The holder of a note could present it for conversion into gold in accordance with the official gold valuation of the note. There was also, as already described, reverse convertibility, by which anyone could tender gold bars and obtain notes in exchange for them. Anyone who so wished could pay a debt to another country on the gold standard by presenting the notes of his own country for conversion by his own central bank, obtaining gold, remitting it to the other country, and there getting the notes of that country in exchange for gold at the official valuation. Most international payments were not made by this method, but through foreign exchange markets. In these markets the great mass of people who wanted to convert, say, sterling into dollars would meet those who had payments to make in the opposite direction, and the dealers in the market could marry the demand for a foreign currency to the supply of it. Keywords: Exchange Rate; Central Bank; Foreign Exchange; Foreign Currency; Foreign Exchange Rate (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15348-0_3 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15348-0_3 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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