ABSTRACT
A stabilisation of exchanges and an eventual restoration of an international monetary system would probably afford the basis for a considerable recovery of business if political conditions were favourable—if there were no war and if domestic policy in the various countries was not such as seriously to disturb confidence. A world of national States each striving for economic autarchy is a world in which the economies of large-scale production can never be fully exploited. A removal of the grosser obstacles to trade and the prospect of a lowering of tariff barriers would do much to enhance a recovery made possible by a stabilisation of monetary conditions. Neither monetary policy nor the freeing of trade can guarantee a lasting stability of business conditions, if the underlying structure of business costs and organisation does not regain its capacity for adaptation to change. The conditions of recovery which have been stated do indeed involve the restoration of what has been called capitalism.
