By Lord Robbins (auth.)

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Much of the argument of the three chapters in this section is devoted to discussion of various aspects of this question. I have no desire to recapitulate at any length the detail of this argument. But, since it involves many questions which are still very active, some broad restatement of my general position may not be out of order. Let me say at the outset that I am fairly clear that the technical, as distinct from the political, difficulties of maintaining fixed rates can be greatly exaggerated.

All that is claimed formally for the analysis is that it exhibits the possibility of extensive negative advantages from large areas and extensive disadvantages from small. But it is also argued further that the practical possibilities thus disclosed are quite serious. At the time it was written, the authorities of the Western powers were closing their markets to Japanese exports. I argued then that they were therefore not altogether guiltless of the influences which brought about the Japanese invasion of China.

When we reflect upon the losses, human and material, which accompanied the severe unemployment of the inter-war period, it is not difficult to understand the almost universal 1 An earlier version of this paper was printed in number 192 of the Comptes· Rendus des Travaux de la Societe d'Economie Politique de Belgique, December 1949· MONEY, TRADE AND INTERNATIONAL RELATIONS popularity of full employment policies. To submit them to critical scrutiny, to enquire concerning their exact implications and their probable consequences must seem to call in question the vital impulses of common charity and good feeling.

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