Keynes on Central Banking and the Structure of Monetary Policy

John Maynard Keynes's monetary works, from A Tract on Monetary Reform to A Treatise on Money and The General Theory, are well known for their insights into the functioning of monetary economies and the conduct of monetary policy in such economies, that is, the appropriate goals of, and ways to implement, monetary policy. Less well known is that Keynes also thought carefuly about the appropriate structure of monetary policy; the regulation of central banks and their relation to the state in matters of monetary policy. The main objective of this paper is to examine the analysis of Keynes's proposal of 1932 for a sound structure of monetary policy.