Th e Genoa proceedings relied heavily on one of Hawtrey’s insights: that budget cuts were indispensable to check the consumption not only of the state but also of the general public. In eff ect, Hawtrey’s principle reduced the disposable income of the working classes. Th is amounted to a check on public demand, which lowered and stabilized internal prices while also securing external monetary stability, since a reduction in both government and private outlay discouraged imports and thus improved the balance of payments.

Clara E. Mattei, The Capital Order, loc. 756