The Economic Consequences of the Peace Chapter VII: Remedies by John Maynard Keynes is part of HackerNoon’s Book Blog Post series.

For the purpose of this inquiry a triple classification of Society is convenient—into the Investing Class, the Business Class, and the Earning Class.

If we are to see the Indian system in its proper perspective, it is necessary to digress for a space to a discussion of currency evolution in general.

Proposals for a Government Paper Currency were instituted in 1859 by Mr. James Wilson on his going out to India as the first Financial Member.

Economists draw an instructive distinction between what are termed the “money” rate of interest and the “real” rate of interest.

The Fowler Committee of 1898 avowed themselves in favour of the ultimate establishment of a gold currency in India as well as a gold standard.

It has been a commonplace of economic text-books that wages tend to lag behind prices, with the result that the real earnings of the wage-earner are diminished

Indian Currency and Finance by John Maynard Keynes is part of HackerNoon’s Book Blog Post series. You can jump to any chapter in this book here: [LINK TO TABLE OF LINK]. Chapter V: Council bills and Remittance

A fluctuation in the measuring-rod of value does not alter in the least the wealth of the world, the needs of the world, or the productive capacity of the world

A Government can live for a long time, even the German Government or the Russian Government, by printing paper money.

1. The Indian authorities have undertaken a double responsibility.

The conditions prevailing in the Indian Money Market in the period immediately preceding 1898 were in many respects very abnormal.

The Presidency Banks publish an official minimum rate of discount, in the same manner as the Bank of England.

Parts of this chapter raise, unavoidably, matters of much greater difficulty to the layman than the rest of the book.

“The arrangement would not last for any appreciable period unless, as a preliminary, the Governments took the necessary steps to balance their budgets.

Transactions in “spot” exchange are for cash—that is to say, cash in one currency is exchanged for cash in another currency.

The reader should notice, further, the different parts played by discount policy under the one régime and under the other.

It is natural, after what we have experienced, that prudent people should desiderate a standard of value which is independent of Finance Ministers and State Ban

A method for regulating the supply of currency and credit with a view to maintaining, so far as possible, the stability of the internal price level

It is necessary to presume to begin with that we are dealing with countries which have not lost control of their currencies.