Essays in Persuasion

This reissue of the authoritative Royal Economic Society edition of Essays in Persuasion features a new introduction by Donald Moggridge, which discusses the significance of this definitive work. The essays in this volume show Keynes' attempts to influenc

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Essays in Persuasion John Maynard Keynes with a new Introduction by Donald Moggridge

For the Royal Economic Society

© The Royal Economic Society 1931, 1972, 2010 Introduction © Donald Moggridge 2010 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First edition published 1931 Second edition published 1972 This edition published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN 978-0-230-24957-8 ISBN 978-1-349-59072-8 (eBook) DOI 10.1007/978-1-349-59072-8 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.

Contents

General Introduction

ix

Editorial Foreword

xv

Preface

xvii

Introduction to New Edition by Donald Moggridge

xx

Notes on Further Reading

xlviii

Corrections to this Edition

l

I

THE TREATY OF PEACE

1.

PARIS (1919)

3

2.

THE CAPACITY OF GERMANY TO PAY REPARATIONS (1919)

6

3.

PROPOSALS FOR THE RECONSTRUCTION OF EUROPE (1919)

14

4.

THE CHANGE OF OPINION (1921)

33

5.

WAR DEBTS AND THE UNITED STATES (1921, 1925, 1928)

37

II

INFLATION AND DEFLATION

1.

INFLATION (1919)

57

2.

SOCIAL CONSEQUENCES OF CHANGES IN THE VALUE OF MONEY (1923)

59

3.

THE FRENCH FRANC (1926, 1928)

76

4.

CAN LLOYD GEORGE DO IT? (1929)

86

v

vi

Contents

5.

THE GREAT SLUMP OF 1930 (DECEMBER 1930)

126

6.

ECONOMY (1931)

135

7.

THE CONSEQUENCES TO THE BANKS OF THE COLLAPSE OF MONEY VALUES (AUGUST 1931)

150

III

THE RETURN TO THE GOLD STANDARD

1.

AURI SACRA FAMES (1930)

161

2.

ALTERNATIVE AIMS IN MONETARY POLICY (1923)

164

3.

POSITIVE SUGGESTIONS FOR THE FUTURE REGULA