A discussion of the principles of monetary policy in the context of economic and political history, thus seeking to illuminate both monetary theory and monetary policy. It draws on a wide range of sources, making use of the recollections of participants in policy-making during the years of the Thatcher governments. The authors advocate direct control of the monetary base (MO) with interest rates being left to find their market level; and they examine the policy debates under Margaret Thatcher that in the end frustrated this proposal.

Provides an accessible account of the evolution of exchange rate regimes in the 20th century by means of a chronological, non-technical history, which links the past and the present. The advantages and disadvantages of different exchange rate systems are evaluated.