Monetary and banking system

The dynamic events of the last two decades require fresh interpretations in the field of economics. Being subjected to the whipsaw action of the worst depression and of the most destructive war in history, the economic system plumbed the depths of unemployment and then reached the heights of full employment. Moreover, during the first three postwar years effective demand so greatly exceeded the available supply of goods that a sharp rise of prices took place in all countries. In all of this, monetary and banking changes played a leading role.
While monetary principles remain largely intact, the institutional setting in which they apply was importantly altered. Moreover, the varied experiences of these years provided a testing ground for generally accepted doctrine. In addition, this period witnessed the challenge of the Keynesian school to traditional methods of analysis and the application of Lord Keynes's theories to public policy in many countries. Much therefore remains to be done in developing the most fruitful theoretical approach, in refining principles, and in interpreting the rapidly moving events of this period.
The general point of view of this work is that of the monetary system as an integral part of the economy. This means that special emphasis is placed on the underlying principles governing the price system and the level of production. While the book is intended to serve mainly as a text, it should also be of practical value to executives in the fields of finance, business, and government.