The Debt to John Maynard Keynes
We are determined that, in future, the external value of sterling shall conform to its internal value as set by our own domestic policies, and not the other way round. Secondly, we intend to retain control of our own domestic rate of interest, so that we can keep it as low as suits our own purposes, without interference from the ebb and flow of international capital movements or flights of hot money. Thirdly, whilst we intend to prevent inflation at home, we shall not accept deflation at the dictate of influences from outside. In other words, we abjure the instruments of bank rate and credit contradiction operating through the increase of unemployment as a means of forcing our domestic economy into line with external factors.
KeywordsMonetary Policy Fiscal Policy Full Employment International Investment Capital Movement
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