Historical reasons for the focus on broad monetary aggregates in post-World War II Britain and the 'Seven Years War' with the IMF
Accepted version
Peer-reviewed
Repository URI
Repository DOI
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Authors
Goodhart, CAE
Needham, DJ
Abstract
jats:pThe British monetary authorities have traditionally focused on broader monetary aggregates than their counterparts elsewhere. The reasons include: the willingness of UK banks to allow customers to make payments by drawing on time deposits, the particularities of the UK approach to managing the national debt and the foreign exchange reserves, and the flow-of-funds system of national accounts developed after World War II. This article outlines these reasons, and explores the implications for the UK's often fractious relationship with the International Monetary Fund during the 1950s and 1960s. It explains why IMF conditionality on loans to the UK focused on broad aggregates.</jats:p>
Description
Keywords
monetary policy, monetary history, International Monetary Fund
Journal Title
Financial History Review
Conference Name
Journal ISSN
0968-5650
1474-0052
1474-0052
Volume Title
24
Publisher
Cambridge University Press (CUP)