Money in an Open Economy

The end of the Second World War marked the beginning of a new era in the history of the Nederlandsche Bank. The change was clearly reflected in the revision of the Bank Act in 1948 and the take-over of the Bank's share capital by the Government in the same year. The revised Bank Act stresses the importance of the Bank's monetary duties, which are 'to regulate the value of the Netherlands monetary unit in such a way as is deemed most conducive to the welfare of the country, and therewith to stabilize that value as far as possible' a truly Herculean task, particularly in the turbulent years following the war. However ceremonious the language used in formulating these duties, their meaningful performance required a dynamic leader. It was Dr. Marius W. Holtrop who shouldered the task. From his appointment to the day of his retirement he devoted himself to the implementation of monetary policy. But he also went beyond the confines of his immediate duties in that he gave much attention to laying the theoretical foundations for such a policy.