Money, as we have noted in earlier chapters, cannot alone ensure
an expansion of income. Yet a shortage of money may adversely affect
investment and consumption. Moreover, a prosperous economy may
be strangled by a sharp curtailment of the money supply. Accordingly,
it was a matter of no little concern for a country to find itself closely
geared, in its monetary system, to fluctuations in its balance of payments.
Internal stability and full employment are not compatible with
domestic monetary dependence upon uncontrolled gaps and surpluses
in the international account.