Historical reasons for the focus on broad monetary aggregates in post-World War II Britain and the 'Seven Years War' with the IMF
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Authors
Goodhart, CAE
Needham, DJ
Publication Date
2017Journal Title
Financial History Review
ISSN
0968-5650
Publisher
Cambridge University Press (CUP)
Volume
24
Issue
3
Type
Article
Metadata
Show full item recordCitation
Goodhart, C., & Needham, D. (2017). Historical reasons for the focus on broad monetary aggregates in post-World War II Britain and the 'Seven Years War' with the IMF. Financial History Review, 24 (3) https://doi.org/10.1017/S0968565017000233
Abstract
<jats:p>The 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>
Keywords
monetary policy, monetary history, International Monetary Fund
Identifiers
External DOI: https://doi.org/10.1017/S0968565017000233
This record's URL: https://www.repository.cam.ac.uk/handle/1810/283391
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