The Economic Consequences of the Peace (1920)
- John Keynes discusses the dangers of govs not dealing more directly with the economic recovery in Europe
- Internal productivity in Europe had fallen off dramatically during WWI and continued to do so after the war.
- Internal transport and exchange had broken down so that markets could not function effectively (in other words, the war had destroyed the possibility for the market forces of supply and demand to work efficiently).
- Europe had not been able to purchase what it wanted from overseas during the war.
- -last phase and after war
- Governments responded incorrectly to inflation by printing more paper money and at the same time, failed to take appropriate measures to regulate supply of essential commodities
- If conditions persisted only rich can get goods
- Consequence (1920) inefficient, unemployed, disorganized Europe, torn by internal and international hate, fighting, starving, pillaging, and lying