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:
“Analyze theory-building how we will, we all must start in the middle. Our conceptual firsts are middle-sized, middle-distanced objects, and our introduction to them and to everything comes midway in the cultural evolution of the race.”
—Willard Van Orman Quine (b. 1908)
“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)
“What we think of as our sensitivity is only the higher evolution of terror in a poor dumb beast. We suffer for nothing. Our own death wish is our only real tragedy.”
—Mario Puzo (b. 1920)