chapter  53
8 Pages

THE LAW OF CHANGE IN THE VALUE OF GOLD

The change of the general price level-The depreciation of money-Money-value and credit-crises-"Appreciation of money" and "general overproduction."

The changes in the value of money which we shall now have to discuss are exclusively those of its exchange-value. Changes in the use-value of the monetary material and in the rate of interest, " the price of the use of money , ""as it is generally called, only indirectly influence the value of money. The direct effect of the value of the material is so insignificant that we need not further discuss it ; that of the rate of interest we shall consider in its appropriate connection. We need not speak at all of nominal value. Under normal conditions the state is not called upon to label the standard money with a nominal value which is intended to fix its value and to affect the exchange value of money.