Page:Stabilizing the dollar, Fisher, 1920.djvu/249

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Sec. 9, F]
TECHNICAL DETAILS
195

The results are, evidently :

Index Number[1] Influence Tendency
Beginning of 1st interval 100
During 1st interval -0 +1
Beginning of 2d interval 101
During 2d interval +1
Beginning of 3d interval 101½
During 3d interval +1
Beginning of 4th interval 101¾
During 4th interval -⅞ +1
Etc.


The stabilization now keeps the index number within 2% of par, the figures being identical with those of "E (c)" above, although the conditions as to the adjustment and its influence are different.

(c) Assumptions same as in standard case except: influence changed from 1% to 2%.

The index number will alternate between 100 and 101 as follows :

Index Number[2] Influence Tendency
Beginning of 1st interval 100
During 1st interval -0 +1
Beginning of 2d interval 101
During 2d interval -2 +1
Beginning of 3d interval 100
During 3d interval -0 +1
Etc. 100


(d) Conclusions as to influence.

We conclude that the adjustment of the dollar may be greater or less than the influence it has on the index

  1. This column also shows (by subtracting 100) the deviation from par and the adjustment of the dollar's weight, which is equal thereto.
  2. This column also shows (by subtracting 100) the deviation and (by subtracting 100 and multiplying by 2) the adjustment.