The author suggests that governments use faulty methods for regulating credit and argues the use of credit multipliers. He argues for a rejection of the theory of the investment multiplier because investment can reduce employment, and will lower prices. The productive resources it releases require new credit creation to employ them.
GEOFFREY W. GARDINER is a former Director of Barclays Bank's International Division, UK, and served Barclays Bank Trust Company in all its activities. He was a Council member of the Institute of Chartered Secretaries and Administrators advising on government and EU discussion issues. He specialized in economics and taxation at the Cambridge Policy conference on the Future of British Agriculture.