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)
“Historians will have to face the fact that natural selection determined the evolution of cultures in the same manner as it did that of species.”
—Konrad Lorenz (1903–1989)
“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)