Article contents
A world economy restored: expert consensus and the Anglo-American postwar settlement
Published online by Cambridge University Press: 22 May 2009
Extract
Although British and U.S. officials held markedly different views during the initial negotiations for a postwar economic order, they were able to reach watershed trade and monetary agreements that set the terms for the reestablishment of an open world economy. How does one explain this Anglo-American settlement reached at Bretton Woods in 1944? Structural explanations, based on underlying configurations of power and interests, are helpful but leave important issues unresolved. Given the range of postwar economic “orders” that were possible and potentially consistent with underlying structures and also given the divergent and conflicting views both within and between the two governments, why did the economic order take the particular shape it took? This article argues that agreement was fostered by a community of British and American economists and policy specialists who embraced a set of policy ideas inspired by Keynesianism and who played a critical role in defining government conceptions of postwar interests, shaping the negotiating agenda (for example, shifting the focus of negotiations from trade issues, which were highly contentious, to monetary issues, about which there was an emerging “middle ground” created by Keynesian ideas), and building coalitions in support of the postwar settlement.
- Type
- Research Article
- Information
- Copyright
- Copyright © The IO Foundation 1992
References
Research for this article was supported by the Peter B. Lewis Fund and by the Center of International Studies at Princeton University. For their helpful comments and suggestions, I thank David Cameron, Peter Cowhey, Daniel Deudney, William Diebold, Jeff Frieden, Lloyd Gardner, Peter Haas, Robert Jervis, Peter Katzenstein, Robert Keohane, Stephen Krasner, David Lake, Craig Murphy, John Odell, M. J. Peterson, Thomas Risse-Kappen, and the participants of seminars held at Columbia University, the University of California at Los Angeles, Yale University, and the University of Southern California. I am also grateful to Geoffrey Herrera for his valuable research assistance.
1. Gardner, Richard N., “Sterling-Dollar Diplomacy in Current Perspective,” International Affairs 62 (Winter 1985–1986), p. 21.CrossRefGoogle Scholar See Kindleberger, Charles P., “U.S. Foreign Economic Policy, 1776–1976,” Foreign Affairs 55 (01 1977), pp. 395–417.CrossRefGoogle Scholar
3. Maier argues that to understand the exercise of American power after World War II, it is necessary to appreciate power not only in terms of the ability to exert control over other countries' decisions but also in terms of the ability to create or sustain order. Power “usefully refers to the capacity to construct a higher degree, or alternative form, of political ‘order’ than would have existed in its absence.” It is this form of American power, according to Maier, that is underappreciated in the postwar era. See Maier, Charles, “An American Empire? Formative Moments of the United States Ascendancy After World War II,” paper presented at the Shelby Cullom David Seminar, History Department, Princeton University, Princeton, N.J., 11 1988, p. 2.Google Scholar
4. The ability of a hegemonic nation to generate shared beliefs in the acceptability or legitimacy of a particular international order—that is, the ability to forge a consensus among national elites on the normative underpinnings of order—is an important if elusive dimension of hegemonic power. See Ikenberry, G. John and Kupchan, Charles A., “Socialization and Hegemonie Power,” International Organization 44 (Summer 1990), pp. 283–315.CrossRefGoogle Scholar
6. This argument would be undermined if it were established that British and American political leaders already had well-developed notions of postwar economic organization and simply called upon policy experts with similar views to refine and implement these views or if it were established that British and American leaders would have arrived at roughly the same settlement in the absence of the activities of the expert community. Empirical analyses of this sort require close attention to the sequence of events (“process tracing”), the use of counterfactuals, and, where possible, comparisons with similar historical episodes (in this case, the post-World War I settlement).
6. In this article, the specific outcome I am seeking to explain is the agreement signed at Bretton Woods in 1944. There was, of course, an entire sequence of “outcomes” that could be the object of explanation: the Anglo-American “Joint Statement of Principles,” the agreement signed at Bretton Woods, the actual accord ratified by Congress and Parliament, the eventual monetary regime itself, and the larger set of political compromises. I focus on the Bretton Woods agreement because it provided the critical blueprint for the larger postwar economic order.
7. Ruggie, John Gerard, “International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order,” in Krasner, Stephen D., ed., International Regimes (Ithaca, N.Y.: Cornell University Press, 1983), pp. 195–231.Google Scholar
9. See Ruggie, John Gerard, “Embedded Liberalism Revisited: Institutions and Progress in International Economic Relations,” in Adler, Emanuel and Crawford, Beverly, eds., Progress in International Relations (New York: Columbia University Press, 1991)Google Scholar. For an excellent discussion of these political compromises and the economic lessons that informed them, see Cooper, Richard, The Economics of Interdependence: Economic Policy in the Atlantic Community (New York: Cambridge University Press, 1968).Google Scholar
9. Gilpin provides perhaps the most powerful and parsimonious explanation for the organization and reworking of international order. A prevailing international order is the reflection of the underlying distribution of material capabilities of states within the system. The distribution of power shifts over time, leading to ruptures in the system, hegemonic war, and an eventual reorganization of the international order that reflects the new underlying power capabilities. See Gilpin, Robert, War and Change in World Politics (New York: Cambridge University Press, 1981).CrossRefGoogle Scholar
10. Maier, Charles, “The Two Postwar Eras and the Conditions for Stability in Twentieth-Century Western Europe,” in Maier, Charles, ed., In Search of Stability: Explorations in Historical Political Economy (New York: Cambridge University Press, 1987), p. 183.Google Scholar
11. See Ikenberry and Kupchan, “Socialization and Hegemonie Power.”
12. See Odell, John S., “From London to Bretton Woods: Sources of Change in Bargaining Strategies and Outcomes,“ Journal of Public Policy, vol. 8, 1989, pp. 294–95Google Scholar. For a critique of hegemony as an explanation for U.S. postwar behavior, see Ruggie, John Gerard, “Multilateralism in Theory and Practice,” in Ruggie, John Gerard, ed., Multilateralism: The Anatomy of an Institution (New York: Cambridge University Press, forthcoming).Google Scholar
13. On the bargain struck between the United States and Europe after World War II over multilateralism and regional integration, see Cohen, Benjamin J., “The Revolution in Atlantic Economic Relations: The Bargain Comes Unstuck,” in Hanreider, Wolfram, ed., The United States and Western Europe: Political, Economic and Strategic Perspectives (Cambridge, Mass.: Winthrop, 1974), pp. 106–33.Google Scholar
14. For further elaboration of these arguments, see Ikenberry, G. John, “Rethinking the Origins of American Hegemony,” Political Science Quarterly 104 (Fall 1989), pp. 375–400.CrossRefGoogle Scholar
15. Hansen, Alvin, “Stability and Expansion,” in Homan, Paul T. and Machlup, Fritz, eds., Financing American Prosperity: A Symposium of Economists (New York: The Twentieth Century Fund, 1945), p. 199.Google Scholar
16. The definitive history of negotiations leading to the agreement remains Gardner's, RichardSterling-Dollar Diplomacy: Anglo-American Collaboration in the Reconstruction of Multilateral Trade (Oxford: Clarendon Press, 1956)Google Scholar. In interpreting the events, Gardner places much more emphasis than I do on the differences between the American and British plans as they were advanced, respectively, by White and Keynes. While Gardner sees the Anglo-American negotiations more as a clash between officials representing different national interests, I see the expert negotiators as finding common cause in devising a plan that would reflect their economic thinking while also being capable of ratification by the American Congress. For a sophisticated political history of the events that also stresses the role of experts in promoting agreement, see Eckes, Alfred E. Jr, A Search for Solvency: Bretton Woods and the International Monetary System, 1941–1971 (Austin: University of Texas Press, 1975)Google Scholar. For a fairly straightforward and detailed history of the negotiations that relies primarily on British documents, see Dormael, Armand Van, Bretton Woods: Binh of a Monetary System (London: Macmillan, 1978).CrossRefGoogle Scholar
17. Keynes, John Maynard, “Post-War Currency Policy,” in The Collected Writings of John Maynard Keynes (London: Cambridge University Press, 1980), vol. 25, p. 22.Google Scholar
18. Odell, , “From London to Bretton Woods,” p. 299.Google Scholar
19. Eckes, , A Search for Solvency.Google Scholar
20. White, Harry Dexter, 03 1942Google Scholar draft of the White plan, Mudd Library, Princeton University, Princeton, N.J.
21. Ibid.
22. See Beveridge, William H., Full Employment in a Free Society (London: Allen & Unwin, 1944).Google Scholar
23. See Skidelsky, Robert, “The Political Meaning of the Keynesian Revolution,” in Skidelsky, Robert, ed., The End of the Keynesian Era: Essays on the Disintegration of the Keynesian Political Economy (London: Macmillan, 1977), pp. 33–40.CrossRefGoogle Scholar
24. Keynes, , “Memo to Sir Wilfred Eady and Richard Hopkins, 28 March 1944,” in The Collected Writings of John Maynard Keynes, vol. 27, pp. 373–74.Google Scholar
25. Roosevelt, Franklin, cited by Charles Kindleberger in The World in Depression, 1929–1939, rev. ed. (Berkeley: University of California Press, 1986), p. 216.Google Scholar
26. Roosevelt, , “Opening Message to the Bretton Woods Conference, 1 July 1944,” in U.S. Department of State, Proceedings and Documents of United Nations Monetary and Financial Conference (Washington, D.C.: Government Printing Office, 1948), vol. 1, p. 71.Google Scholar
27. Viner, Jacob, “Objectives of Post-War International Economic Reconstruction,” in McKee, William and Wiesen, Louis J., eds., American Economic Objectives (New Wilmington, Penn.: The Economic and Business Foundation, 1942), p. 168.Google Scholar
28. Rees, David, Harry Dexter White: A Study in Paradox (New York: Coward, McCann & Geoghegan, 1973), p. 62.Google Scholar
29. Blum, John Morton, From the Morgenthau Diaries: Years of Crisis, 1928–1938 (Boston: Houghton Mifflin, 1959), pp. 131–34.Google Scholar
30. Blum, John Morton, From the Morgenthau Diaries: Years of War, 1941–1945 (Boston: Houghton Mifflin, 1967), pp. 228–29.Google Scholar
31. Galbraith, John Kenneth, “How Keynes Came to America,” in Williams, Andrea D., ed., Economics, Peace and Laughter (Boston: Houghton Mifflin, 1971), pp. 43–59.Google Scholar
32. See Salant, Walter S., “The Spread of Keynesian Doctrines and Practice in the United States,” in Hall, Peter A., ed., The Political Power of Economic Ideas: Keynesianism Across Nations (Princeton, N.J.: Princeton University Press, 1989), p. 40Google Scholar. See also Stein, Herbert, The Fiscal Revolution in America (Chicago: University of Chicago Press, 1969)Google Scholar; Sweeny, Alan, “The Keynesians and Government Policy, 1933–1939,” American Economic Review 62 (05 1972), pp. 116–24;Google Scholar and May, Dean L., From New Deal to New Economics: The American Liberal Response to the Recession of 1937 (New York: Garland Publishing, 1981).Google Scholar
33. See Weir, Margaret, “Ideas and Politics: The Acceptance of Keynesianism in Britain and the United States,” in Hall, The Political Power of Economic Ideas, p. 56Google Scholar. See also Clawson, Marion, New Deal Planning: The National Resources Planning Board (Baltimore, Md.: Johns Hopkins University Press, 1981).Google Scholar
34. Block, Fred, The Origins of International Economic Disorder (Berkeley: University of California Press, 1977), p. 39.Google Scholar
35. Eckes, , A Search for Solvency, p. 60.Google Scholar
36. Domhoff argues that the Bretton Woods proposals had their origin in the deliberations of the Council's War and Peace Studies Project and the Economic and Financial Group. See Domhoff, G. William, The Power Elite and the State (New York: Aldine De Gruyter, 1990), chap. 6Google Scholar. For an earlier argument along these lines, see Shoup, Laurence H., “Shaping the Postwar World: The Council on Foreign Relations and United States War Aims During World War II,” The Insurgent Sociologist 5 (Spring 1975), pp. 9–52.CrossRefGoogle Scholar
37. Interview with Diebold, William Jr, New York, 14 08 1990Google Scholar. Diebold was research secretary for the Economic and Financial Group in 1941 and 1942.Google Scholar
38. See Domhoff, , The Power Elite and the State, chap. 6.Google Scholar
39. See Singer, Hans, “The Vision of Keynes: The Bretton Woods Institutions,” in Jensen, Erik and Fisher, Thomas, eds., The United Kingdom and the United Nations (London: Macmillan, 1990), pp. 235–45.CrossRefGoogle Scholar
40. Keynes, John Maynard, The Economic Consequences of the Peace (New York: Harcourt, Brace, & Howe, 1920).Google Scholar
41. As discussed later in my article, however, Keynes's first negotiations with the American government during the war dealt with lend-lease and postwar trade relations.
42. See Weir, , “Ideas and Politics,” p. 55Google Scholar. See also Gardner, Richard, “The Political Setting,” in Acheson, A. L. K., Chant, J. F., and Prachowny, M. F. J., eds., Bretton Woods Revisited (Toronto: University of Toronto Press, 1972), p. 24;Google Scholar and Howson, Susan and Moggridge, Donald, eds., The Wartime Diaries of Lionel Robbins and James Meade, 1943–45 (London: Macmillan, 1990).CrossRefGoogle Scholar
43. Keynes, , “Letter to Jacob Viner, 9 June 1943,” in The Collected Writings of John Maynard Keynes, vol. 25, p. 323.Google Scholar
44. See Clarke, Stephen, “The Influence of Economists on the Tripartite Agreement of September 1936,” European Economic Review 10 (12 1977), pp. 375–89CrossRefGoogle Scholar. See also Hall, Peter, Governing the Economy: The Politics of State Intervention in Britain and France (New York: Oxford University Press, 1986), pp. 49–50.Google Scholar
45. See Eckes, , A Search for Solvency, chap. 4.Google Scholar
46. Cable from the British Embassy, Washington, D.C., to Keynes, 3 07 1942, T247/11, Public Records Office, London; emphasis added.Google Scholar
47. Interview with Diebold, New York, 14 08 1990.Google Scholar
48. See Harrod, R. F., The Life of John Maynard Keynes, pp. 527–28.Google Scholar
49. Minutes of the Thirty-Second Meeting of the Economic and Financial Group, 13 07 1942, p. 8Google Scholar, Council on Foreign Relations, New York.
50. For unofficial proposals, see Horsefield, J. Keith, The International Monetary Fund, 1945–1965: Twenty Years of International Monetary Cooperation (Washington, D.C.: International Monetary Fund, 1969), vol. 1, pp. 16–18.Google Scholar
51. Interview with Diebold, New York, 14 08 1990Google Scholar. According to Diebold, John Williams was initially involved in the discussions of the Economic and Financial Group at the Council on Foreign Relations, but, perhaps reflecting his absence of agreement with the “new thinking,” he soon dropped out.
52. See League of Nations, International Currency Experience (New York: League of Nations, 1944).Google Scholar
53. See Dorpalan, Andreas, ed., The World of General Haushofer: Geopolitics in Action (New York: Farrar & Rinehart, 1942)Google Scholar. In particular, see the discussion of Gunther Scholders and Walter Vogel's Economics and Space in the Dorpalan volume.
54. Emeny, Brooks, The Strategy of Raw Materials (New York: Macmillan, 1934).Google Scholar
55. Spykman, Nicholas John, America's Strategy in the World: The United States and the Balance of Power (New York: Harcourt, Brace, 1942).Google Scholar
56. See Leffler, Melvyn P., “The American Conception of National Security and the Beginning of the Cold War, 1945,” American Historical Review 89 (04 1984), pp. 346–81.CrossRefGoogle Scholar
57. See Council on Foreign Relations, “Methods of Economic Collaboration: The Role of the Grand Area in American Economic Policy,” in Studies of American Interests in the War and Peace, 24 07 1941, E-B34, Council on Foreign Relations, New York.Google Scholar
58. See Frieden, Jeff, “Sectoral Conflict and U.S. Foreign Economic Policy, 1914–1940,” International Organization 42 (Winter 1988), pp. 59–90.CrossRefGoogle Scholar
59. For a recent discussion of American international liberalism during this period, see McCormick, Thomas J., America's Half-Century: United States Foreign Policy in the Cold War (Baltimore, Md.: Johns Hopkins University Press, 1989), chap. 2.Google Scholar
60. Block, The Origins of International Economic Disorder, p. 9.Google Scholar
61. See the contrasting views of Skidelsky and Rowland in Benjamin Rowland's Balance of Power or Hegemony: The Interwar Monetary System (New York: New York University Press, 1976).Google Scholar
62. See Watt, David, “Perceptions of the United States in Europe, 1945–83,” in Freedman, Lawrence, ed., The Troubled Alliance: Atlantic Relations in the 1980s (New York: St. Martin's Press, 1983), pp. 28–43.Google Scholar
63. This is a theme of Charles Maier in “The Two Postwar Eras and the Conditions of Stability in Twentieth-Century Western Europe.” On the British case, see Louis, William Roger, Imperialism at Bay: The United States and the Decolonialization of the British Empire, 1941–45 (New York: Oxford University Press, 1978).Google Scholar
64. British Foreign Office, “Cooperation Between Great Britain and the United States,” memorandum, 1942, F0371/30685, Public Records Office, London.Google Scholar
65. Regarding this dispute in the 1930s, Rowland notes that “whether the blocs were a good in themselves, an unqualified ‘bad,’ or only a useful expedient on the way to recovery were questions on which there was little agreement either within the leading countries or among them.” See Rowland, Benjamin, “Preparing the American Ascendancy: The Transfer of Economic Power from Britain to the United States, 1933–1944,” in Rowland, Balance of Power or Hegemony, p. 200.Google Scholar
66. Penrose, , Economic Planning for the Peace (Princeton, N.J.: Princeton University Press, 1953), p. 15.CrossRefGoogle Scholar
67. Hull, Cordell, cited by Van Dormael in Bretton Woods: Binh of a Monetary System, p. 25.Google Scholar
68. See Pollard, Robert A., Economic Security and the Origins of the Cold War, 1945–1950 (New York: Cambridge University Press, 1985), pp. 11–12.Google Scholar
69. Herbert Feis, the State Department's economic adviser, noted the continuity of the department's position when he argued during the war that “the extension of the Open Door remains a sound American aim.” See Feis, Herbert, “Economics and Peace,” Foreign Policy Reports 30 (04 1944), pp. 14–19Google Scholar; cited by Gardner, Lloyd in Economic Aspects of New Deal Diplomacy (Madison: University of Wisconsin Press, 1964), p. 263.Google Scholar
70. Block, The Origins of International Economic Disorder, pp. 36–37.Google Scholar
71. In ibid., p. 32, Block argues that the Treasury Department planners were “national capitalist“ in orientation and favored increased government planning and social spending, while the State Department planners were ”business internationalists” and favored unfettered free trade and an open world economy. According to Block, “It is one of the stranger ironies of international monetary history” that the Treasury Department planners began with national capitalist assumptions but ended up with plans that supported the business internationalists. I do not think this view can be sustained. Although White and his colleagues had a disdain for nineteenth-century laissez-faire ideas, the “new thinking” that they and Keynes were developing was clearly seen as an attempt to construct an open world economy, one that was built around a more sophisticated set of policies and institutions. The British and American architects of the Bretton Woods agreement were either alloyed or unalloyed internationalists. See Gardner, , Sterling-Dollar Diplomacy, p. 15;Google Scholar and Eckes, , A Search for Solvency, p. 4.Google Scholar
72. On the limits of the redistribution and expansionary dimensions of the Bretton Woods agreement, see Murphy, Craig, The Emergence of the NIEO Ideology (Boulder, Colo.: Westview Press, 1984), chap. 1.Google Scholar
73. Memorandum from Ambassador Halifax to the British Foreign Office, 20 10 1942, F0371/31512, Public Records Office, London.Google Scholar
74. See Brinkley, Alan, “The New Deal and the Idea of the State,” in Fraser, Steve and Gerstle, Gary, eds., The Rise and Fall of the New Deal Order (Princeton, N.J.: Princeton University Press, 1989), pp. 85–112.Google Scholar
75. Maier, Charles, “The Politics of Productivity,” in Katzenstein, Peter J., ed., Between Power and Plenty: The Foreign Economic Policies of Advanced Industrial States (Ithaca, N.Y.: Cornell University Press, 1978), p. 28.Google Scholar
76. On the general schools of thought among British foreign policy elites, see Watt, D. Cameron, Succeeding John Bull: America in Britain's Place, 1900–1975 (Cambridge: Cambridge University Press, 1984), pp. 16–17.CrossRefGoogle Scholar
77. Penrose, , Economic Planning for the Peace, p. 19.Google Scholar
78. Harrod, , The Life of John Maynard Keynes, p. 515.Google Scholar
79. See Penrose, , Economic Planning for the Peace, p. 20Google Scholar. In discussing the views of the conservatives, Penrose states that “perhaps their most active and uncompromising member was Leopold Amery, who had great energy, high integrity, and keen political insight, but little facility in economic reasoning.”
80. Ibid., p. 20.
81. Ibid., p. 14.
82. For a discussion of the relationship between British domestic economic problems (particularly those concerning employment) and an open international economic order, see Fisher, Allan G. B., International Implications of Full Employment in Great Britain (London: Royal Institute of International Affairs, 1946)Google Scholar. Fisher also surveys various positions on multilateralism and its alternatives.
83. Eckes, , A Search for Solvency, pp. 64–65.Google Scholar
84. According to Harrod, these officials believed that Britain “could not afford to abandon any device that might assist her to retain or enlarge her export trade. Such motives were honourable and not fundamentally inconsistent with what the State Department had in mind. Most of those who held such opinions would not have deemed it a wise long-run policy to push the system of Imperial Preference further and build a self-supporting British Empire bloc. ”See Harrod, , The Life of John Maynard Keynes, p. 515.Google Scholar
85. This was the position of most officials at the British Foreign Office and the Treasury. See the Foreign Office report, “Note on Post-War Anglo-American Economic Relations,” 15 10 1941, F0371/28907, Public Records Office, London.Google Scholar
86. Keynes's initial thoughts on postwar policy were prompted by an invitation from the Ministry of Information to draft a response to the German propaganda campaign and its proposal for a “New Order.” In the draft statement, Keynes argued that the British too could provide a new order in Europe, based on sterling and the larger resources of the Commonwealth and empire. Britain, Keynes argued, would not return to the prewar gold standard and the policies that produced severe unemployment and other dislocations. The Keynes memorandum stressed national measures to ensure employment and social welfare, and although it spoke of the need to restore European trade, there remained the implication that the British preference system would continue. The draft statement, sent by the British government in advance of the Keynes visit, showed a very different orientation than that which was emerging in the State Department. For the text of the statement, see The Collected Writings of John Maynard Keynes, vol. 25, pp. 11–16Google Scholar. See also Harrod, , The Life of John Maynard Keynes, pp. 503–4;Google Scholar and Gardner, , Economic Aspects of New Deal Diplomacy, p. 276Google Scholar. As Gardner notes, “American leaders were not quite sure how to take these ideas; to most of them Keynes's memorandum meant socialism if not something worse.”
87. “Memorandum of Conversation, by the Assistant Secretary of State (Acheson),” 28 07 1941, in Perkins, E. R., ed., Foreign Relations of the United States, 1941 (Washington, D.C.: Government Printing Office, 1959), vol. 3, p. 11.Google Scholar
88. Ibid., p. 12.
89. In The Life of John Maynard Keynes, p. 512Google Scholar, Harrod offers the following description of Keynes's position in Washington: “What he had in mind was the application with American assistance of Keynesian remedies for unemployment and trade depression on a world scale. He was not averse from breaking down the barriers to trade, but thought that the necessary pre-condition was a much more thoroughgoing policy of reconstruction. He had also in the forefront of this mind the appalling problems that Britain would face after the war in the matter of her own trade balance. It was, therefore, far from his thought that all could be set right by the mere elimination of ‘discriminatory’ practices from trade policy.” Harrod confirms that the reports at the time were correct: Keynes had referred to the first draft of Article VII as “the lunatic proposals of Mr. Hull.”
90. “Memorandum of a Conversation,” in Foreign Relations of the United States, 1941, vol. 1, p. 353.Google Scholar
91. Penrose, , Economic Planning for the Peace0, p. 18.Google Scholar
92. Keynes, cited by Robbins, Lionel in Autobiography of an Economist (London: Macmillan, 1971), p. 194CrossRefGoogle Scholar. Robbins, considered this view “a sad aberration of a noble mind”; see p. 156.Google Scholar
93. See Eckes, , A Search for Solvency, p. 65.Google Scholar
94. The initial draft and subsequent versions of the Keynes plan are published in The Collected Writings of John Maynard Keynes, vol. 25, pp. 21–40.Google Scholar
95. As Eckes, notes inA Search for Solvency, p. 66Google Scholar, this “distribution of new financial assets would allow members—particularly heavily indebted countries like Britain—to remove restrictions on all capital movements, maintain stable exchange rates, and pursue stimulative domestic policies without fear of an external payments crisis.”
96. The White plan is published in Foreign Relations of the United States, 1942, vol. 1, pp. 171–90.Google Scholar
97. Penrose, , Economic Planning for the Peace, pp. 55–60.Google Scholar
98. Robbins, , Autobiography of an Economist, p. 200.Google Scholar
99. Dispatch from Ambassador Halifax to the British Foreign Office, 10 1942, F0371/ 31513, Public Records Office, London.Google Scholar
100. See periodic essays by economic editorialist George Soule in The New Republic. Soule argued that postwar economic planning must be handled carefully this time, since it was botched the last time. He called for economic planning at the national and international level, which together would constitute a new form of economic federation. Similar views were expressed by economist Keith Hutchison in a series of articles in The Nation during the war. Hutchison favored an economic bill of rights to guarantee jobs at a living wage, but he also supported world federalism to regulate tariffs and engage in reserve banking for investment and distribution of surplus savings. See “Economy for a New World,” The Nation, 22 03 1941.Google Scholar
101. See, for example, “Support for Bretton Woods,” The Nation, 16 06 1945, pp. 661–62.Google Scholar
102. See, for example, Sterling, Mark, “Peace by Economists,” The Spectator, 24 07 1941, pp. 79–80.Google Scholar
103. See, for example, “Currency and Trade,” The Spectator, 9 04 1943, pp. 331–32.Google Scholar
104. The Economist clearly favored multilateralism to blocs and bilateral trade. By the end of the war, its editors argued that the world needed to move toward “managed free trade.” See “The Multilateral Approach,” The Economist, 22 01 1944, pp. 94–96.Google Scholar
105. Hirschman, Albert O., “How the Keynesian Revolution Was Exported from the United States, and Other Comments,” in Hall, The Political Power of Economic Ideas, p. 356.Google Scholar
106. The rise of postwar political coalitions around Keynesian social democracy has been widely discussed. For a good analysis of the rise and fall of Keynesian social democracy in Britain, see Marquand, David, The Unprincipled Society: New Demands and Old Politics (London: Jonathan Cape, 1988).Google Scholar
107. Bendix, Reinhard, Kings or People: Power and the Mandate to Rule (Berkeley: University of California Press, 1978), p. 16.Google Scholar
108. This is stressed by Odell in “From Bretton Woods to London.”
109. During the interwar period, the legitimacy of the modern industrial state began to hinge more and more on the provision of socioeconomic welfare. See Marshall, T. H., Class, Citizenship and Social Development (Garden City, N.Y.: Doubleday, 1964)Google Scholar; Bendix, Reinhard, Nation-Building and Citizenship: Studies of Our Changing Social Order (New York: Wiley, 1964), chap. 3;Google ScholarPolanyi, Karl, The Great Transformation (New York: Farrar & Rinehart, 1944)Google Scholar; and Poggi, Gianfranco, The Development of the Modem State: A Sociological Introduction (Stanford, Calif.: Stanford University Press, 1978), chap. 6, especially p. 134.Google Scholar
- 95
- Cited by