At a Dinner given by the Lord Mayor to the Bankers and Merchants of the City of London on the 20th October, 1960.
In the monetary field the past twelve months have been notable for three things; a strong swing in the pendulum of monetary policy, the introduction of a new technical device, and a heavy movement of international funds between different markets.
From early 1958 until late 1959 monetary policy had been directed towards countering a mild recession. It was on this occasion at the Mansion House last year that the first notes of caution were sounded that demand might again be running too fast and that the economy might again be in danger of getting overloaded. During the first half of 1960 these dangers became more apparent and monetary policy was progressively tightened to help in combatting them.