DO WE WANT AN ELASTIC CURRENCY? If one were to take a poll of the writers who have participated in the various currency controversies of this century, he would probably find a majority of the eminent names on the side of an elastic system. But, as regards the practical outcome of these controversies, the victory, as is well known, has remained, in both England and the United States, with the advocates of a safe rather than an elastic currency. In the recent revival of agitation upon this matter, expert opinion has almost without exception declared for elasticity. Yet, in this case, as in the former controversies, the idea has not been able to gain for itself legislative approval. For this failure to secure the realization in practice of an idea which seems to have gained such general acceptance in theoretical discussions, there are doubtless many causes, political and social, with which the economist has no concern. But I cannot avoid the conviction that one cause of some significance is the fact that this unanimity of opinion is to a considerable extent only apparent,that there is not a little half-latent scepticism as to the value, or at least as to the importance, of elasticity. This conviction has led me to attempt a somewhat systematic investigation of the matter from the standpoint of experience. Is there a real need in the business world for an elastic currency, or is the whole agitation based upon a highly plausible a priori argument having little foundation in fact? That it must be very difficult to reach any definite conclusions from an investigation of MACCITT |