INTRODUCTION TO THE FIRST EDITION

It is the second time this century that monetarist dogma has become the official creed of the Government of Britain. The first occasion was in the 1920s when, egged on by the Cunliffe Committee and pressures from the City, Britain was driven to return to the Gold Standard at the pre-war parity -- despite, as we now know, the opposition, if not the hostility, of the then Chancellor of the Exchequer, Winston Churchill. The disastrous consequences, and the reactionary character of this step were brilliantly analysed in a pamphlet by Keynes (a pamphlet far ahead of the times and ahead of much of his own future writing on the subject), in which he branded monetary policy as 'simply a campaign against the standard of life of the working classes', operating through the 'deliberate intensification of unemployment . . . by using the weapon of economic necessity against individuals and against particular industries -- a policy which the country would never permit if it knew what was being done'.1 As the decade wore on, resistance to any 'reflationary' policy intensified. The 'Treasury view' of the 1920s was no more nor less profound than the present views of Mrs Thatcher.

But in 1931 Britain was saved from the horrors of monetarism against her will. The maintenance of the Gold Standard was regarded as the supreme objective, for the sake of which a group of right-wing Labour Ministers, led by the Prime Minister, Ramsay MacDonald, deserted the Party and formed the National Government. But despite the highly deflationary budget which the new Government hastily introduced -- more deflationary, in comparable terms, than the present Government's recent efforts -- the Gold Standard could not be saved.

And with its abandonment, on 18 September 1931, the rule of monetarism came to an abrupt end. The Bank Rate was reduced almost overnight from 6 per cent to 2 per cent, the new Chancellor, Neville Chamberlain, carried out the greatest conversion operation in history (the reduction of the interest on the War Loan from 5 per cent to 3½ per cent, which brought down the whole structure of long-term interest rates) and introduced a protective tariff on all manufactured goods which led to the fastest rate of economic growth in British history.

____________________
1
J. M. Keynes, The Economic Consequences of Mr. Churchill ( London, 1925), reprinted in the Collected Writings of John Maynard Keynes Vol. IX ( London, 1972), pp. 207-30.

-xx-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Scourge of Monetarism
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • List of Figures and Tables vii
  • INTRODUCTION TO THE SECOND EDITION ix
  • INTRODUCTION TO THE FIRST EDITION xx
  • PART I - The Radcliffe Report and Monetary Policy 1
  • A Personal Note on Lord Radcliffe 2
  • Lecture I 3
  • Lecture II 17
  • PART II - Monetary Policy in the United Kingdom 37
  • Evidence to the Treasury And Civil Service Committee July 1980 39
  • NOTES ON SUBSEQUENT DEVELOPMENTS 112
  • Index 113
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 114

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.