Money Credit And Prices in Keynesian Perspective

Professor Anderson's study of " Effects of the War on Money,Credit and Banking in France and the United States" needs nocommendation. It is full both of information and of suggestions,and will be valuable not only to bankers but to other business- men, to students, and to the general reader.The account of occurrences and policies in the United States is so full, accurate and clear that editorial comment on them isunnecessary.

According to mainstream economic theory, the prices of individual stocks respond rationally to unexpected news. However, real market movements appear to respond to news in more complex and sometimes perverse ways, overshooting or not reacting at all. Professor Pepper puts forward a new theory based on the analysis of the supply of and demand for investible funds. He shows that price movements are governed not by news but by financial requirements of investors, requirements which therefore become a powerful forecasting tool.