“We shall talk as if the objective of internal balance were simply that of maintaining a level of total demand for all the country’s products sufficiently high to maintain full employment, but not so high as to lead to a continuing inflation of money prices and costs.”

—  James Meade

Source: The balance of payments, 1951, p. 106; As cited in: Metaxas & Weber (2013, p. 20)

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James Meade 15
British economist 1907–1995

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“On principle i relative prices will be lowered in the interests of external balance and domestic expenditure will be inflated in the interests of internal balance. Internal balance will be very quickly restored although there is no net change in external balance. Relative prices must, therefore, continue to be lowered, which will tend now to produce a boom at home. The inflationary financial policy must, therefore, be replaced by a deflationary policy. In the end relative prices will be substantially lowered, while there may be a small net inflation or deflation of domestic expenditure by financial policy.”

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Source: The balance of payments, 1951, p. 160; As cited in: Metaxas & Weber (2013, p. 22)

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