My interest in economics had the following roots. Like many of my generation I considered the heavy unemployment in the United Kingdom in the inter-w… - James Meade

We assume...that the banking system must be prepared to expand (or contract) the total supply of money to the extent necessary to prevent any scarcity (or plenty) of funds in the capital market which may be induced by any other disturbing factor, from causing a rise (or fall) in interest rates

[Central banks might have to intervene to counter "perverse" or "grossly excessive" speculation.] By such means, the monetary authorities can attempt to make the market for foreign exchange approximate toward what it would have been if there had been free competitive speculation with correct foresight of future movements. In this case all that the authorities have to do is to anticipate more correctly than private speculators the future course of exchange rates. And in so far as they do so they will make a profit at the expense of the private speculator.

It is a special privilege for me on this occasion to have my name associated with that of Professor Bertil Ohlin. By the younger generation of economists we are no doubt both regarded as what in my country are now known as 'senior citizens'; but I am just that much younger than Professor Ohlin to have regarded him as one of the already established figures when I was first trying to understand international economics. His great work on International and Interregional Trade opened up new insights into the complex of relationships between factor supplies, costs of movement of products and factors, price relationships, and the actual international trade in products, migration of persons, and flows of capital. Of the two volumes which I later wrote on International Economic Policy - namely, The Balance of Payments and Trade and Welfare - it is in the latter that the influence of this work by Professor Ohlin is most clearly marked.