Currency Sandara currency has profoundly a "managed" in place of a gold
modified the basic conditions-of the gilt-edged market, asserts the "Economist" Today, when immense gold holdings are sterilized in the Exchange Fund, the monetary authorities can exercise considerable control over the gilt-edged market, not merely by their borrowing policy, but also by contracting or expanding the credit base by adjustments in the respective gold holdings of the Exchange Fund and the Bank of England. So important, indeed, is the role of the Treasury's policy under present-day conditions that recently Mr. J. M. Keynes explained a considerable fall in gilt-edged values last year, chiefly by reference to Government borrowing during the period of a large gold influx into the Exchange Fund. Can we safely assume, therefore, that cyclical economic factors, which played so large a part in determining the course of the market in earlier days, have now been relegated to a minor role?
Text read from the printed page and cleaned; old type leaves the occasional error.