Evolution
The new institution's first task was to stabilize and unify the currency. To achieve this, the Issuer Institute won the "gold standard exchange", a monetary system set the price of the sucre in terms of gold; their basic objective was to keep the price of the sucre fixed at 0.300933 grams of fine gold, or one fifth of the fine gold content of the U.S. dollar at that time. This convertibility forced an economic crisis when the United States entered its Great Depression (1929), which led to enact a new moratorium on payments on February 8, 1932.
Since then, the traditional policy of deficit spending and credit, which funded the Ecuadorian economy between 1915 and 1925, regained its validity.
Read more about this topic: Central Bank Of Ecuador
Famous quotes containing the word evolution:
“The more specific idea of evolution now reached is—a change from an indefinite, incoherent homogeneity to a definite, coherent heterogeneity, accompanying the dissipation of motion and integration of matter.”
—Herbert Spencer (1820–1903)
“By contrast with history, evolution is an unconscious process. Another, and perhaps a better way of putting it would be to say that evolution is a natural process, history a human one.... Insofar as we treat man as a part of nature—for instance in a biological survey of evolution—we are precisely not treating him as a historical being. As a historically developing being, he is set over against nature, both as a knower and as a doer.”
—Owen Barfield (b. 1898)
“As a natural process, of the same character as the development of a tree from its seed, or of a fowl from its egg, evolution excludes creation and all other kinds of supernatural intervention.”
—Thomas Henry Huxley (1825–95)