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Keynes’s  General Theory  is the basis of how we think about fiscal policy today, having displaced the Gladstonian view of what constituted sound finance. His earlier  Tract on Monetary Reform , written a century ago, advocated what is now the standard form of monetary policy, varying interest rates to target domestic prices rather than a fixed exchange rate. But it was less influential at the time than was the  General Theory . The  Tract  was also less theoretically innovative, being based on the Cambridge tradition of the quantity theory of money.

One Hundred Years Ago. Keynes’s A Tract on Monetary Reform