ABSTRACT
These dangers might be largely met if it were possible to ensure that the controllers would always take the most effective measures that they could to ensure a 5 per cent growth in the Money GDP. As a result, in so far as the outside shocks to the system are as likely to be deflationary as inflationary, the future would be as likely to show errors that produced rates of growth below 5 per cent as it would be to lead to rates of growth above 5 per cent; and in this case much of the uncertainty about the future value of money might be removed.* We do not discuss in this volume any of the political, institutional or constitutional arrangements whereby the control of the rate of growth of the Money GDP might be removed from day-to-day political influences - as the price of gold was removed from such influences during the maintenance of the fixed-parity gold standard. If, however, it could be done, the stabilisation of the rate of growth rather than of the level of the Money GDP might be preferred on the grounds of the greater simplicity of its operation.
