Once the urgent problems of reparations, which had deeply troubled
Keynes at the Peace Conference at Versailles, were on their way
towards solution, Keynes turned to the equally grave problems of
the currencies of Europe and their adjustment to the post-war
world. These issues had been discussed in the series of
Reconstruction Supplements of the Manchester Guardian Commercial
that he had edited during 1922. In the Tract Keynes drew heavily on
his own contributions to that series. This edition makes available
the variations between the texts. The Tract remains of interest in
three respects. First, it shows the state of Keynes's thinking
about monetary problems and the causes of inflation in the early
1920s. Second, it provides one of the clearest expositions ever
written of the determination of forward exchange rates. Third, it
shows Keynes already favouring flexible exchange rates as a means
of allowing independence in national economic policy.
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