Once high bank rates defl ated domestic prices, those high bank rates had to persist in order to achieve an even costlier objective: returning to the gold standard at the prewar parity of 1914. Th is amounted to a long haul of defl ation, as the sterling needed to be raised from $3.40 in 1920 to $4.86 in 1925- a 10 percent price defl ation (see Peden 2000, 128- 89).

Clara E. Mattei, The Capital Order, loc. 995