The Economic Consequences Of The Peace, John Maynard Keynes, 1919

The Economic Consequences Of The Peace, John Maynard Keynes, 1919

Author: John Maynard Keynes

Year: 1888

The Economic Consequences of the Peace (1919) is a seminal book by British economist John Maynard Keynes. It was written in the immediate aftermath of World War I, following Keynes's resignation from the British delegation at the Paris Peace Conference in protest of the Treaty of Versailles. It is widely considered one of the most influential books of the 20th century, famous for its biting criticism of the Allied leaders and its chillingly accurate prediction that the treaty's harsh terms would lead to the economic collapse of Germany and a second world war. Keynes's central thesis was that the treaty was a "Carthaginian Peace"—a reference to the total destruction of Carthage by Rome—designed to crush Germany rather than rehabilitate Europe. Impossible Reparations: Keynes argued that the reparations demanded by the Allies (billions of dollars) were well beyond Germany's capacity to pay. He calculated that Germany could afford at most £2 billion, while the Allies were demanding many times that amount. The Economic Unity of Europe: He insisted that Europe’s economy was interconnected. Germany was the industrial engine of the continent; by crippling Germany, the Allies were effective