909. Charles Morgan Webb to Harrod , 15 June 1939 [a]

5, Temple Gardens, Brighton #

15 June 1939 [1]

My dear Harrod

Since my return from the States, I have only just had an opportunity of reading your most stimulating article on Dynamic Theory in the March number of the Economic Journal. [2] Please forgive my presumption in sending the enclosed Note containing my impressions of the article.

I am perhaps indiscrete in introducing the Parliamentary Monetary Committee into my Note. [3] It slipped in because I had been endeavouring in my work for the Committee to counter the operation of the de-stabilising effect of money as described in your "Trade Cycle", [4] and I failed to find the effect of this destabilisation introduced into your Dynamic Theory.

I am fully aware of the limitations of monetary policy alone to produce stability. But I regard it as being of supreme importance to counteract to the fullest extent possible the de-stabilising effect of money by correct Monetary Management in order that the stabilising factors may operate free from the hampering effect of monetary disturbance.

It is for this reason that I have ventured to ask you kindly to let me know whether the presentation in my Note has any validity, or whether I have mistaken the nature of the de-stabilising effect of money.

Yours sincerely

C Morgan Webb


See enclosed Note

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