Pruebas de idoneidad de la leche

b an k s to v a r y s u p p ly o f d e p o s it m oney in a c o r r e s p o n d in g w ay. T h e c y c lic a l p a t t e r n in s h o r t te r m in t e r e s t r a t e s ( h o w e v e r , w as not b ro u g h t a b o u t th ro u g h d o m e s tic m oney m a rk e t m ech anism alone. C yc lic a l c h a n g e s in demand f o r m o n ey also im p lie d s im ila r v a r ia tio n s in th e l e v e l o f in te rn a l d ra in o f g o ld coin s fro m c e n t r a l b a n k s in to dom estic c ir c u la tio n , a ffe c t in g t h e g o ld r e s e r v e h e ld b y c e n t r a l banks and th e ir r e s e r v e ra tio s in a c o n t r a c y c lic a l m an n er. S in c e in th e pre-1914 g o ld s ta n d a rd sys te m t h e p rim a ry o b j e c t i v e o f c e n t r a l b an k s la y in m a in ta in in g th e g o ld c o n v e r t i b i l i t y o f t h e ir c u r r e n c ie s , th e le v e l o f c e n t r a l b ank d is c o u n t r a t e s b y and l a r g e d e p e n d e d u p on th e s ta te o f g o ld r e s e r v e . 21 T h e r e f o r e , th e in t e r n a l g o ld d r a in fro m and r e flu x to c e n t r a l bank co u ld b e e x p e c te d to h a v e c o n t r ib u t e d to th e c y c lic a l c h a n g e s in c e n tr a l b a n k d isco u n t r a t e s in t h e p re-1914 p e rio d .

In B r ita in , th e in t e r n a l d r a in o f g o ld fro m th e B an k o f E n glan d d u r in g u p s w in g s ten d ed to b e c o u p le d w ith e x t e r n a l g o ld o u tflo w s , w h ich , as w a s show n a b o v e , w a s c o n n e c te d w ith th e e x c e s s iv e fo r e ig n in v e s tm en t r e la t iv e ly to th e s t a t e o f c u r r e n t b a la n ce o f p aym en ts su rp lu s; c o n v e r s e ly , d u r in g d o w n s w in g s g o ld c o in s in c irc u la tio n re tu rn e d to th e Bank o f E n g la n d , w hile g o ld t e n d e d to flo w in to B rita in . S in c e e x te r n a l flo w s , a s w ell as in t e r n a l d r a in , o f g o ld a ffe c t e d th e a b s o lu te le v e l o f g o l d held in th e - B an k o f E n g la n d , the la tt e r t e n d e d to v a r y c o n t r a c y c lic a lly . On th e o t h e r h a n d , th e ’P ro p o rtio n * o f th e cash r e s e r v e to th e lia b ilit ie s o f th e B an k in g D ep artm en t d e clin e d d u r in g u p s w in g s a n d im p r o v e d d u r in g d o w n s w in g s , r e fle c t in g th e a cco m m o d a tin g r e s p o n s e o n th e p a r t o f th e Bank to t h e c y c lic a lly c h a n g in g demand f o r c a s h fro m th e b a n k in g 22

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