PUZZLE OF THE EXCHANGE
Sir, —The attempt of the School of Economics of the Canterbury College to justify devaluation of the New Zealand pound has been given such publicity as to cause the man in the street to ask the school for a little further enlightenment. Would they kindly answer the following questions:—(l) What is meant by the rate of exchange between New Zealand and London? (2) How do we arrive at that rate? (3) What governs the rise and fall of the rate of exchange, according to the principles of sound banking practice? (4) What is meant by the price of an article? (5) What is monej'? What are its functions? (6) What is the function of the New Zealand pound in our international trade? (7) What is the function of the sterling pound in our international trade? (8) In what way can the devaluation of the New Zealand pound benefit any producer in New Zealand whose goods are measured for the purpose of exchange by that pound while devalued? (9) From what source are derived the funds that pay the New Zealand farmer for the goods he exports? (10) From what source are derived the funds that pay the British exporter for the goods he sends to New Zealand? J. Hislop.
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Bibliographic details
New Zealand Herald, Volume LXXIII, Issue 22351, 24 February 1936, Page 13
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213PUZZLE OF THE EXCHANGE New Zealand Herald, Volume LXXIII, Issue 22351, 24 February 1936, Page 13
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