TO BRITAIN FIRST

Rotorua Morning Post, Volume 1, Issue 205, 22 April 1932, Page 5

TO BRITAIN FIRST

(Press. Assn.—

ECONOMIC RECOVERY abandonment of gold is declared the starting point famous economist's views

-By Telegraph— Copyright).

Rec. April 21, 7.50 p.m. NEW YORK, Wednesday. Mr. John Maynard Keynes, the noted> British Economist, in an article in the Atlantic Monthly declares that Great Britain's abandonment of the gold standard is the starting point of world economic recovery. _ "Great Britain to-day," he writes' f'is decidedly the most prosperous country in the world and the force s relieved by the abandonment of the gold standard will in time undermine and destroy the creditor position of France and the United States. A policy of inflation may, however, prevent an ahnost complete collapse of the financial structure of modern capitalism." Mr. Keynes recommends a similar policy for the United States, bnt he says it is inconceivable what rubbish a public man has to utter to-day, if he is to lceep respectable, but the best bankers see the need for inflation. "The United States will have to wait for a stimulus for economic recovery from outside, while such a recovery will first of all come to Great Britam and to the group of overseas countries which looks to her for financial leadership," he concludes.