ABSTRACT
Proposals aiming at a reduction of the cost of borrowing probably constitute the least radical and most innocuous form of monetary reform scheme. It is a matter of opinion whether such proposals are compatible with the maintenance of an otherwise orthodox monetary system. Much depends upon the degree to which the adherents of the cheap money school are prepared to proceed, and upon the methods by which they propose to achieve their end. Being themselves borrowers, Governments are naturally in favour of cheaper money, though their desire to maintain the stability of their currency by means of high interest rates often silences the arguments in favour of cheaper borrowing.
