Mr. Bernstein is Director of the Research Department. He was formerly Professor of Economics in the University of North Carolina and Assistant to the Secretary in the United States Treasury. He is the author of Money and the Economic System.
Mr. Patel, economist in the Financial Problems and Policies Division, was educated at the University of Bombay, the University of Cambridge, and the Harvard Graduate School, and was formerly Professor of Economics in the University of Baroda.
In the United States and Canada, per capita real income increased by approximately 50 per cent during the decade, 1938-48, and in the Union of South Africa by nearly 25 per cent. But in Egypt and India, for example, per capita real consumption in the postwar years has been somewhat lower than in 1938, and per capita real income has probably not increased since 1938.
The Colombo Plan (Report of the Commonwealth Consultative Committee, 1950, Cmd. 8080).
To this should be added an amount of bank credit equal to the increase in real resources that the public wishes to hold as currency and deposits, unless the increase in cash balances is matched by an increase in foreign assets of the monetary system.
Encyclopaedia of the Social Sciences, Vol. VI, p. 371.
Despite its payments difficulties, the United Kingdom has provided considerable resources to overseas areas since the end of World War II. New capital issues in the London market for overseas investment were from £30 million to £50 million a year between 1947 and 1951. Short-term capital movements and direct investments also provided considerable sums. Even more important have been the large releases of sterling balances. The United Kingdom cannot, however, continue to supply capital abroad until it has established a sizable payments surplus on current account.