"Hawtrey, I think one can see, came to favor the other way out. It is the fixed rate of exchange which imposes the international constraint; if that is abandoned, the Bank can recover its authority. A system in which the rate of exchange is free to move, while internal stability is maintained by a relentless application of the Bank Rate mechanism, is theoretically conceivable, and as a model is instructive. But it would seem to depend for its working upon the maintenance of confidence in some normal rate of exchange, from which the current rate would be supposed to diverge only more or less temporarily; and it is not easy to see how such confidence could be engendered."
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John Hicks, “Hawtrey,” in Economic Perspectives (1977), p. 128
https://en.wikiquote.org/wiki/Ralph_George_Hawtrey
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Ralph George Hawtrey
Sir Ralph George Hawtrey (22 November 1879 – 21 March 1975) was a British economist, and a close friend of John Maynard Keynes. He was a member of the , the University of Cambridge intellectual secret society.
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