The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Dear Money

  • Susan Howson
Reference work entry


The obverse of cheap money, ‘dear money’ is also used to denote episodes in which central banks have raised (short-term) interest rates deliberately to bring about a contraction of money or credit, often in order to preserve a fixed exchange rate. The historical episodes are memorable for their effects on economic activity and on subsequent monetary theory and policy.

This is a preview of subscription content, log in to check access.


  1. Blackaby, F.T. (ed.). 1978. British economic policy 1960–74. Cambridge: Cambridge University Press.Google Scholar
  2. Chandler, L.V. 1958. Benjamin Strong: Central banker. Washington, DC: Brookings Institution.Google Scholar
  3. Clapham, Sir John. 1944. The bank of England. Cambridge: Cambridge University Press.Google Scholar
  4. Clarke, S.V.O. 1967. Central bank cooperation 1924–31. New York: Federal Reserve Bank of New York.Google Scholar
  5. Dow, J.C.R. 1964. The management of the British economy 1945–60. Cambridge: Cambridge University Press.Google Scholar
  6. Friedman, M., and A.J. Schwartz. 1963. A monetary history of the United States 1867–1960. Princeton: Princeton University Press.Google Scholar
  7. Hawtrey, R.G. 1938. A century of bank rate. London: Longmans Green & Co.Google Scholar
  8. Howson, S. 1974. The origins of dear money, 1919–20. Economic History Review 27(1): 88–107.CrossRefGoogle Scholar
  9. Howson, S. 1975. Domestic monetary management in Britain 1919–38. Cambridge: Cambridge University Press.Google Scholar
  10. Keynes, J.M. 1930. A treatise on money. London: Macmillan for the Royal Economic Society, 1971.Google Scholar
  11. Moggridge, D.E. 1972. British monetary policy 1924–1931. Cambridge: Cambridge University Press.Google Scholar
  12. Morgan, E.V. 1943. The theory and practice of central banking 1797–1913. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  13. OECD. 1974. Monetary policy in the United States. Paris: OECD.Google Scholar
  14. Sayers, R.S. 1957. Central banking after Bagehot. Oxford: Clarendon Press.Google Scholar
  15. Sayers, R.S. 1976. The bank of England 1891–1944. Cambridge: Cambridge University Press.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Susan Howson
    • 1
  1. 1.