extracted text

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May 6, 1952

Mr R.P.

ExM^'.

Christchurch,
Oxford. England
My dear Harrod,

After having the pleasure of seeing you in Bruges I had
the further pleasure of reading your lectures on the Pound
Sterling, published by Princeton University. I want to tell
you that I found this booklet extremely helpful in shaping
my opinion about a number present-day questions, and I want
to thank you once more for sending it to me, I •bhi.nk you
point against the devaluation of 19^9 is rather strong. The
only doubt which I feel particularly when you also advocates
revaluation at the present time is about the long-term consequences. My own impression about the elasticities you
quote is that they represent short-term elasticities and that

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the long-term e l a s t i c i t i e s are probably higher. If so, i t Rj|xt
be that in the long run a revaluation vrauld bring your counWr
in d i f f i c u l t i e s .
With best personal regards,
yours very sincerely,