ABSTRACT
We pointed out in Chapter IV that to a large extent the postwar gold standard was a managed monetary system. While before the war the gold standard was based almost entirely upon the automatic working of the economic tendencies, after the war Central Banks adopted the practice of interfering with these tendencies to a large extent. This fact, in itself, proves that the gold standard and monetary management are by no means incompatible. The question is whether it would be possible to reconcile the existence of the gold standard with a really advanced degree of monetary management. If so, a managed currency backed by gold might appear to be the ideal solution since it gets the best of both worlds. It would constitute a fair compromise between monetary orthodoxy and radicalism.
