British Monetary Policy, 1945-51The first majority Labour government in Britain was pledged to maintain full employment, reform the financial system and nationalize major industries. It faced a massive balance-of-payments problem and a persistent threat of inflation. Using records of the Labour Party, the Treasury, the Bank of England and other participants in the discussions of the time, this study explains the reasons for Chancellor of the Exchequer Hugh Dalton's pursuit of cheaper money in 1945-7 and for the continuation of cheap money until the advent of a Conservative government in 1951. It also examines the consequences of Labour's monetary policies in terms of modern economic theory, as well as considering why Labour's financial reform was so limited. |
Contents
Introduction | 1 |
Cheap money | 7 |
Wartime financial policy | 18 |
Copyright | |
13 other sections not shown
Common terms and phrases
22 per cent authorities balance of payments balance-of-payments bank deposits Bank of England Bank rate Bank's BLPES Bridges Britain Cairncross capital issues Capital Issues Committee Chancellor cheap cheaper money policy clearing banks Cobbold Committee Compton Cripps current account deficit devaluation dollar domestic Douglas Jay draft Durbin Eady economic policy Economic Section economists Employment Policy exchange control Exchequer expenditure Fforde Financial Policy floating debt full employment funds Gaitskell gilt-edged market government securities Governor Hugh Dalton Hugh Gaitskell income increase inflation James Meade July June Keynes Keynes's Keynesian Labour government Labour Party loan London Meade Memorandum ment monetary policy Mynors National Investment Board nominal interest rates Note Peppiatt Piercy Papers post-war proposals rate of interest reduce reserves rise Robert Hall Diaries Sept short-term interest rates sterling area Table TDRs Treasury bills Treasury officials Trend wartime