The International Setting of Monetary Policy: U.K. and U.S. Perspectives
In this chapter our main topic will be a discussion of recent U.K. and U.S. monetary policy but, because the environment in which this policy has been conducted has often been dominated by international considerations, an extended discussion of the problems which this broader perspective requires will precede the policy survey [76, 111]. As we will see, the problems which countries face depend on the payments system adopted — and on how well it works — and any generalisation which leads to policy prescriptions has to be reworked in terms of what is likely to happen to the payments system. As these words are being written, we stand amid the wreckage of the International Monetary Fund (I.M.F.), observing a ‘world-wide’ inflation and a ‘system’ of managed flexibility. But things were not always this way, and as the basis of the discussion, we will investigate the I.M.F. in its successful period after the Second World War.
Unable to display preview. Download preview PDF.