J.M. Keynes’ Tract on Monetary Reform (1923) After 100 Years—A Retrospective

Abstract

This article revisits the main themes and theories that Keynes presented in the Tract on Monetary Reform one hundred years ago. It argues that the Tract remains highly relevant today for mainly three reasons. First, the Tract remains relevant as one of the four major monetary works that represent the evolution of Keynes’ monetary thought. Second, the Tract contains theories that were and continue to be important in their own right, especially since they may not have received any attention in the General Theory. Third, the Tract developed policy ideas and proposals that describe common practices of central banks around the world today. In fact, one hundred years later, it is fair to say that modern civilization includes Keynes’ mantra of the Tract as one of its tenets: that a managed currency is inevitable.