Albu tells US Bankers * E cannot accept, and we do not think anyone is asking us to accept, that in order to try to secure a temporary improvement in the balance of payments we should push deflation to the point at which it would utterly defeat our long-term objectives.” Mr. Austen Albu, Minister of State for Economic Affairs, told the American Bankers’ Association this on March 18. Speaking at a New York luncheon, he contended that the real needs of the UK economy were consistent and enduring policies which would encourage growth and the modernisa-
tion of equipment and human
attitudes “by which alone we can stop
these recurring cycles of balance of
payments weaknesses.”
Mr. Albu maintained that the full
deflationary effect of the Autumn
Budget had been insufficiently appre-
ciated at the time.
He stated that the Government
was conscious of the drag on exports
of the pressure on prices and wages
which took place in a fully employed
economy, but expressed the hope
that the National Board for Prices
and Incomes would have a “strong
moderating effect” on upward
pressures. a)
The recent speech in London by