British Monetary Policy and the Balance of Payments, 19511957

A detailed study of the revolution in Bank of England policy resulting from the governments response to the 195455 balance-of-payments crisis, this is a first independent analysis. The author investigates the evolution of official thinking and appraises the impact of monetary policy in this crucial period. Peter Kenen reaches the unexpected conclusion that the Banks orthodox monetary policies played a relatively small part in the redress of payments disequilibrium, and that its most effective weapons were its most heterodox. Finally, he proposes ways in which the Bank of England can better control the credit base.