Tag Archives: John Maynard Keynes

My 2016 reading list

In this post I wanted to share the list of books I read along the year (1) with a small comment for each one and links to some articles in this blog where I wrote a book review for a few of them. I have also included a small rating from one to three “+” depending on how much do I recommend its reading:

books

  1. Reales Ordenanzas” (by Carlos III, King of Spain 1759-1788) (+): these are the set of rules for the Spanish Armed Forces issued in 1768 under the rule of the king Carlos III and which were kept in use until 1978. They are structured in titles and articles, quite like a legal text. Some of the main values conveyed through the rules are respect for the orders received and education in the dealings with subordinates. Find a post with the book review I wrote about it here.
  2. Cronica de una muerte anunciada” (by Gabriel Garcia Marquez) (+++): in this book Garcia Marquez explores a mix of styles between journalism and crime fiction to cover the plot of the murder of Santiago Nasar, and how despite being widely announced, as the time of the death approaches it cannot be prevented by the people who try to do so. Find a post with the book review I wrote about it here.
  3. The Capital in the XXI century” (by Thomas Piketty) (+++): arguably the economics book of 2013, it is a review of the evolution and distribution of wealth and income from the XVIII century till today mainly in Europe and the United States. It discusses how in times of small growth the rate of return of capital becomes the main source of wealth increase and how that contributes to the increasing and maintaining of inequality. A follow-on conclusion is his call for a global tax on wealth.
  4. Common Sense” (by Thomas Paine) (+): published in 1776, it is one of the best selling books in America of all time. The book is a short treatise on the government, democracy, monarchy and a call for the freedom of independence of the American colonies from England.
  5. Pilote de guerre” (by Antoine de Saint-Exupery) (++): published in 1942 while he was living in New York, this book describes Saint-Exupery’s experiences during the battle of France (1940) when he flew aboard a Bloch MB.170 reconnaissance missions over Germany. The English version of the book was published under the title “Flight to Arras”.
  6. Club Dumas” (by Arturo Perez-Reverte) (+++): this novel is centered on Lucas Corso, a fictional book dealer specialized in finding collectors items. Corso is commissioned to find copies of a book and that will take him to travel between Spain, Portugal and France living situations that resemble very much to those of The Three Musketeers, the novel by Alexandre Dumas. The book in itself is an invitation to read other books and to cultivate a passion for reading.
  7. Gray Mountain” (by John Grisham) (+++): published in the fall of 2014, this legal thriller by Grisham tells the story of the lawyer Samantha Koffer, on leave from a big law firm in NY due to the Great Recession, she joins the practice of a small firm in Virginian Appalachia region where she will defend the victims of big coal mining corporations.
  8. quijoteEl ingenioso hidalgo don Quijote de la Mancha” (by Miguel de Cervantes) (+++): Cervantes published the two books that have become the masterpieces of literature in Spanish language between 1605 and 1615, since then, they have become two of the most sold and read books. They cover the stories and encounters of the hidalgo (knight) Don Quixote with Sancho Panza as his helper. Those adventures are used by Cervantes to reflect by way of the characters on different aspects of life, pose rhetorical questions, criticize institutions, etc. Find a post with the book review I wrote about it here.
  9. El sol de Breda” (by Arturo Perez-Reverte) (++): this book is the third one of the series of the fictional Captain Alatriste. In this book, the story is framed around the siege of Breda (1625). The book covers extensively the detail of life at the trenches, the feelings of some of the characters and how they face the uncertainty of the war. He also reflects on the Spanish history and some features that he sees as part of the national character. Find a post with the book review I wrote about it here.
  10. Terre des hommes” (by Antoine de Saint-Exupery) (+++): this is a compilation book of some memories of the aviator Antoine de Saint-Exupéry of his time at the airmail carrier l’Aéropostale.The book was published in 1939, two years later he received the US National Book Award for it. In the book, Saint-Exupéry pays tribute to some of his colleagues, mainly Henri Guillaumet and Jean Mermoz, and he shares some experiences which today seem unbelievable. Find a post with the book review I wrote about it here.
  11. La falsa bonanza” (by Miguel Sebastian) (+++): Miguel Sebastian is an economist who served in the cabinet of Spanish prime minister as economic adviser and as minister of Industry, Trade and Tourism from 2008 to 2011. Those were the years following the financial crash and in which the bubble who had been going on for years in Spain finally exploded. In this book, Sebastian intends to find the causes that fuelled that bubble, the policies that helped it, the actions that were not taken, the institutions that failed at stopping it, etc., with the aim of being better equipped to avoid a similar development in the future. The book is written in a very readable fashion, provides plenty of tables, graphics and references, and at the same time is very synthetic.
  12. Le Tour du monde en 80 jours” (by Jules Verne) (++): Willeas Fog, a character about whom not much is known, bets with his colleagues of the Reform club in London that he is able to travel around the world in 80 days, and so he does embark himself in such endeavor with his assistant, Passpartout. A the same time, there is an ongoing investigation of a robbery of the Bank of England which makes a police investigator, Fix, to follow Fog all along the trip (as he is a suspect), waiting for an authorization coming from England to arrest him before he evades justice. The reader is conflicted by the suspicion laid upon Fog, as all the acts of the character in the story describe an orderly, integer, compassionate person, even if not much is known about him, his profession, origins or his past. Find a post with the book review I wrote about it here.
  13. Les Parisiens comme ils sont” (by Honoré de Balzac) (+): I approached this book, part of the large series “La Comédie humaine“, as a first encounter with the work of Balzac in advance to a trip to Paris. The style of Balzac in this book is very readable, light, direct. I would even say opinionated. I did not particularly like the book very much, especially the chapters referring to how women should behave, dress, and the comparisons between women of Paris and the provinces. It may reflect a view of his time and class, but did not resonate with me today.
  14. keynesThe General Theory of Employment, Interest, and Money” (by John Maynard Keynes) (+++): this book, published in 1936, is considered the magnum opus of Keynes, a character whose contribution to the development of economics and politics cannot be overstated. The book pointed to some of the shortcomings of the classical theory (lack of competition) and introduced some key concepts such as the propensity to consume, the multiplier, the consumption function, the marginal efficiency of capital, etc. The book was not intended for the general public and I must say that it has been one of the most difficult reads I have encountered so far. Nevertheless, I consider it a must read for those having an interest in economy. I may write a dedicated post reviewing it at a later point in time.
  15. El Junkers Ju-52/3m CASA C-352” (by Luis Gonzalez Pavon) (+++): this is a book written by a colleague from CASA (the former name of the Spanish part of Airbus) where he dives in great detail into the history of the aircraft Junkers 52, from the origins of his designers to its production in Germany and under license in Spain. He collected plenty of information on the aircraft from different sources, serial number by serial number, recording the changes of tail numbers, registry numbers, the roles played by each and every aircraft, and in particular the crucial mission they played during the first stages of the Spanish Civil War on the Nationalist side. The book includes at the end charts, drawings and tables with the technical data of the aircraft.
  16. What I talk about when I talk about running” (by Haruki Murakami) (++): Murakami is a quite accomplished runner since the beginning of the 1980s. In this book, published in 2007, he described what running means and has meant to him. Personally, it was very easy to relate to him, sharing not only his passion for running, but a bunch of experiences, from having run marathons in New York or Athens, to having completed a 100km ultra marathon, to 6am morning runs. Find a post with the book review I wrote about it here.
  17. Man’s search for meaning” (by Viktor E. Frankl) (++): Frankl was a psychiatrist who developed a therapy called logotherapy based on the will for meaning. He later became prisoner at several concentration camps during the second world war, which he survived. He described in this book the experiences he and some of his fellow prisoners endured during those years and how that will helped them to survive. That accounts for about two thirds of the book; the remaining third is dedicated to further explanations and clarifications of his therapy.
  18. Poema del Cid” (anonymous, Pedro Abad) (+++): this is oldest epic poem of Spanish literature, which tells the history of the Castilian knight Rodrigo Díaz de Vivar, better known as Cid Campeador. The story goes from the loss by the Cid of the favor of the king Alfonso VI to his leaving of Castile, his continued profession of allegiance to the king, the fights and the conquest Valencia (where he settles), the coming closer againt to the king via the marriage of his daughters with Castilian noblemen and the following vengeance against his sons-in-law.
  19. Voyage au centre de la Terre” (by Jules Verne) (+): this is a science fiction novel centered around the figure of the fictional professor Otto Lidenbrock who has studied the works of the 16th-century Icelandic Arne Saknussemm and believes that getting into the Snæfellsjökull volcano he will be able to reach the centre of the earth. He is accompanied in his trip by a local guide and his nephew, with whom he discusses the scientific implications of such a trip and the features of the landscape they encounter as they travel downwards.
  20. Exploradores: La historia del yacimiento de Atapuerca” (by José María Bermúdez de Castro) (++): this book is a very informative and fascinating trip into archeological science, the different theories within it, the evolution and the discarding of some of those, the relevant place of the archeological site of Atapuerca in the recent developments in the science, etc.; all described by José María Bermúdez de Castro, one of the co-directors of the site since over 20 years ago and one of the persons who have seen all those developments first-hand, coined some of the theories and wrote the papers.
  21. hamletHamlet, Prince of Denmark” (by William Shakespeare) (+++): one of the best known plays by Shakespeare, the plot can be summarized (without spoiling it) as follows: Hamlet’s father, the previous king, has recently died and Hamlet is profoundly affected by his death. A ghost of his father appears to him and this sets Hamlet into the search of who has killed his father. The play takes place at the Kronborg castle, in Helsingør (Denmark), which we visited in August, take a look at the post about that visit here.
  22. American Capitalism, the concept of countervailing power” (by John K. Galbraith) (++): the American economist explains in this book, published in 1952, the concept of countervailing power, necessary to balance in favor of the weaker part situations in which imperfect competition is established, creating oligopolies or monopolies which otherwise would enjoy an extremely powerful hand against individual wage owners or small (farm) producers. The book is a critique to the classical theory, in that it shows that it assumes perfect competition, a kind of competition which in real life very often it is absent.
  23. Dubliners” (by James Joyce) (+): I came to reading this book ahead of a trip to Ireland and Dublin without knowing about it. The book, published in 1914, is a collection of short unconnected stories of the everyday life of common Dubliners. The book has some importance in the frame of the then-high momentum of Irish nationalism, but I particularly did not like it very much. However, apparently some of the characters and stories appear again and are continued in Ulysses, thus the groundwork of having read it may pay off at a later time.
  24. Yeager” (by General Chuck Yeager & Leo Janos) (+++): Chuck Yeager was the US Air Force flight test pilot that broke the sound barrier for the first time on October 14, 1947, flying on board of the rocket-propelled Bell X-1. Reading his autobiography you discover that he went from being an uneducated child in rural West Virginia to retiring as a general of the US Air Force, acquainted with several US presidents and other dignitaries, he was the first pilot to become ace in a single day by shooting down 5 German fighters at World War II. Find a post with the book review I wrote about it here.
  25. goriotLe Père Goriot” (by Honoré de Balzac) (+): this book, published in 1835 and part of the large series “La Comédie humaine“, is considered to be the most important novel of Balzac. The story is centered around some characters who live in the boarding house of Mme. Vauquer, mainly the young Eugène de Rastignac, who is coming from a rural background and trying to reach the upper levels of Parisian society (initially at the cost of his family), and father Goriot, who had spent all his fortune on his daughters in order to marry them to wealthy individuals. Their lives are intertwined in a quite sad plot in which the daughters ignore the father when he is dying and Eugène befriends them and unsuccessfully tries to get them closer to the father.
  26. Candide, ou l’Optimisme” (by Voltaire) (+): this book, published in 1759 by the French philosopher François-Marie Arouet (Voltaire), follows Candide from the time when he is expelled by his uncle when he declares his love to his cousin Cunégonde. The story then takes Candide through Spain, Lisbon, South America, the Ottoman empire, etc., in a sequence of events in which Candide is confronted by situations and characters that put to the test his innate optimism.
  27. Metamorphosis” (by Franz Kafka) (++): this fiction novel, published in 1925, starts with the transformation of the salesman Gregor Samsa into a large vermin (insect-like creature). As the story goes, Gregor gets to learn how to live in his new condition and so does his family, which initially is profoundly impacted. The state of denial of the parents, the disgusting sight and smell of the creature, added to the discomfort of the new situation take a toll in the mood and relationships within the family.
  28. Romeo and Julliet” (by William Shakespeare) (+++): this play, published in 1597, tells the story of the love of two youngsters from rival families of Verona (Italy). This rivalry causes that both Romeo and Julliet have to hide their love and engage in secret with a priest of their confidence, while the family of Julliet wants her to marry a local nobleman, Paris. The bad timing of different events, miscommunications and bad chance steer the story into a fateful ending.
  29. Rogue Lawyer” (by John Grisham) (+++): published in the fall of 2015, this legal thriller by Grisham tells the story of Sebastian Rudd, a lawyer which does not hesitate to take the cases that nobody wants to take, providing a defense to people convicted for the worst kind of crimes. Working in the dark side of the legal system puts him in the situation to negotiate obscure arrangements with the federal institutions.
  30. The Importance of Being Earnest” (by Oscar Wilde) (+++): The play, a critical satire of some of Victorian England social institutions and values (in particular marriage, literary press, religion, honesty, punctuality), is centered around two friends, Algernon and Jack (John Worthing), who go about from criticizing each other’s habits, to sharing each other’s faked relatives, to proposing to each other’s cousin and ward. After drawing several parallels between the two characters and their fiancées, and going about several absurd situations, the play unravels in the most unexpected way. Find a post with the book review I wrote about it here.
  31. The picture of Dorian Gray” (by Oscar Wilde) (++): this book, published in 1890, created a great controversy at the time due to the backwards morals and social conventions of the time. The use of the language and the style of the novel are impressive. The story itself is centered around Dorian Gray, how he is influenced by Lord Henry and his focus on beauty and pleasure, and the painter Basil, who captured in a portrait of Dorian his essence, to the point that Dorian’s life will be very much influenced and even dominated by his relationship with the painting.
  32. mosqueterosLes Trois Mousquetaires” (by Alexandre Dumas) (+++): published in 1844, this masterpiece of Dumas, recounts the story of d’Artagnan, a real character of the XVII century, even if many of the facts of his life are twisted or made up for the novel. The plot includes several real life characters of XVII century France and some of the events taking place during 1625-28 (such as the siege of La Rochelle, the death of the Duke of Buckingham, etc.), though the plot in itself and the explanation of the causes intertwining the events are fictional. The over 800 pages (of the edition I have) read in a frantic pace thanks to the easy style of Dumas and the parallel progress on the different sides to the story.
  33. Wait” (by Franck Parnoy) (++): in this book the author studies the decision making process in situations that range from super fast trading, to the milliseconds before bating a baseball, to the longer term decisions involved in innovation. From the different stories covered in the book the lesson to be taken is the need to take some pause, to wait, to observe, process the information and orient ourselves before taking action.

During this year and the last quarter of 2015, I have been able to read at a higher pace than during the previous ones. I would suggest the reader of this post, if interested in reading more, to check out the following two tips:

  • a blog post from Farnam Street blog “Just Twenty-Five Pages a Day“, which was published well after I had adopted such an approach to reading but captures it very well,
  • the Wikipedia article about the Pomodoro Technique, which enables you to efficiently use the last hours of the day.

I wish you all very interesting reads in 2017!

(1) You can find here: my 2012 reading list, 20132014 and 2015 ones.

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The Economic Consequences of the Peace

armisticeAfter the Armistice of November 11th, 1918, terminating the World War I in the west front, John Maynard Keynes attended the Paris Peace Conference as a delegate of the British Treasury. It was at that time that he wrote the book “The Economic Consequences of the Peace” (released at the end of 1919) (1).

I read the book back in 2012, and hadn’t yet written a thorough review of it in the blog despite of being reminded of it every year on Armistice Day, a memory day observed in France. In the book, Keynes explained how the disaster in the making was about to be produced; due to lack of communication between representatives from USA, UK, France and Italy, the electoral interests of British representatives and the intention from Clemenceau of taking as much as possible from Germany.

“Moved by insane delusion and reckless self-regard, the German people overturned the foundations on which we all lived and built. But the spokesmen of the French and British peoples have run the risk of completing the ruin, which Germany began, by a Peace which, if it is carried into effect, must impair yet further, when it might have restored, the delicate, complicated organization, already shaken and broken by war, through which alone the European peoples can employ themselves and live.”

economicconsequencesKeynes advocated for softer terms to be imposed on Germany, not only out of justice for its future generations but out of pragmatical economic estimates that he discusses in detail in the book.

“My purpose in this book is to show that the Carthaginian Peace is not practically right or possible. Although the school of thought from which it springs is aware of the economic factor, it overlooks, nevertheless, the deeper economic tendencies which are to govern the future. The clock cannot be set back”

He criticized that from the very beginning, as laid out in the Fourteen Points outlined in a speech by Woodrow Wilson earlier in 1918, the spirit of the conference was not the appropriate one,

“The thoughts which I have expressed in the second chapter were not present to the mind of Paris. The future life of Europe was not their concern; its means of livelihood was not their anxiety. Their preoccupations, good and bad alike, related to frontiers and nationalities, to the balance of power, to imperial aggrandizements, to the future enfeeblement of a strong and dangerous enemy, to revenge, and to the shifting by the victors of their unbearable financial burdens on to the shoulders of the defeated.”

At that time there wasn’t the amount of available open data on economic figures, output, trade, etc., that we enjoy today. This did not deter Keynes in making the estimates himself of the economic provisions that a sound peace treaty should include in his point of view.

The German economic system as it existed before the war depended on three main factors:

  1. Overseas commerce as represented by her mercantile marine, her colonies, her foreign investments, her exports, and the overseas connections of her merchants;
  2. The exploitation of her coal and iron and the industries built upon them;
  3. Her transport and tariff system.

Of these the first, while not the least important, was certainly the most vulnerable. The Treaty aims at the systematic destruction of all three, but principally of the first two”

Under the provisions of the treaty Germany was demanded a yearly contribution to the Allies of 40,000,000 tons of coal. Keynes argued to what extent this, together with other provisions, put Germany in a dire state.

  • Pre war maximum output had been reached in 1913, with 191,500,000 tons of coal. Out of which 19,000,000 tons were consumed in the mines and 33,500,000 tons were exported,
  • This left 139,000,000 for domestic (pre war) consumption.
  • The nominally German output was diminished due to loss of territory (Alsace-Lorraine, Saar Basin, Upper Silesia), which meant a reduction of up to 60,800,000 tons out of 1913 figures… thus, a maximum theoretical output of ~130,000,000 tons.
  • Keynes argued that the destruction of the war, the reduction in working hours (from 8.5h to 7h) and loss of efficiency (due to operators lost in the war, those with deteriorated health, etc.) could account for a loss 30% of output… thus, a maximum theoretical output limited to ~100,000,000 tons.

Requiring Germany to contribute 40,000,000 tons would leave it with only 60,000,000 tons for domestic use, which even when allowing for the loss of territory, meant that its economic future was being jeopardized.

Every million tons she is forced to export must be at the expense of closing down an industry.

But it is evident that Germany cannot and will not furnish the Allies with a contribution of 40,000,000 tons annually. Those Allied Ministers, who have told their peoples that she can, have certainly deceived them for the sake of allaying for the moment the misgivings of the European peoples as to the path along which they are being led.”

A similar criticism is made of the chapter of the treaty that covers the “Reparation“, that is the compensation for the destruction of the war and loss of civilian lives.

“compensation will be made by Germany for all damage done to the civilian population of the Allies and to their property by the aggression of Germany by land, by sea, and from the air.”

Keynes argued that the claims from the different Allies were much too high. He, again, came up with his own estimates, which he later validated with French output statistics of the time and suggested an early settlement, without entering in the painful exercise of calculating every minor detail.

Belgian claims against Germany such as I have seen, amounting to a sum in excess of the total estimated pre-war wealth of the whole country, are simply irresponsible.” […]

“While the French claims are immensely greater, here too there has been excessive exaggeration, as responsible French statisticians have themselves pointed out. Not above 10 per cent of the area of France was effectively occupied by the enemy, and not above 4 per cent lay within the area of substantial devastation. Of the sixty French towns having a population exceeding 35,000, only two were destroyed—Reims (115,178) and St. Quentin (55,571); three others were occupied—Lille, Roubaix, and Douai—and suffered from loot of machinery and other property, but were not substantially injured otherwise.” […]

“…it will be difficult to establish a bill exceeding $2,500,000,000 for physical and material damage in the occupied and devastated areas of Northern France. I am confirmed in this estimate by the opinion of M. René Pupin, the author of the most comprehensive and scientific estimate of the pre-war wealth of France, which I did not come across until after my own figure had been arrived at. […] but to be on the safe side, we will, somewhat arbitrarily, make an addition to the French claim of $1,500,000,000 on all heads, bringing it to $4,000,000,000 in all.

In this speech the French Minister of Finance estimated the total French claims for damage to property (presumably inclusive of losses at sea, etc., but apart from pensions and allowances) at $26,800,000,000 (134 milliard francs), or more than six times my estimate.” […]

(estimate for all countries) “I believe that it would have been a wise and just act to have asked the German Government at the Peace Negotiations to agree to a sum of $10,000,000,000 in final settlement, without further examination of particulars. This would have provided an immediate and certain solution, and would have required from Germany a sum which, if she were granted certain indulgences, it might not have proved entirely impossible for her to pay.”

A similar discussion is presented in relation to the Pensions and Allowances to be added to the Reparation chapter.

Keynes then turned to the ability of Germany to pay,

[…] “I reach, therefore, the final conclusion that, including all methods of payment—immediately transferable wealth, ceded property, and an annual tribute—$10,000,000,000 is a safe maximum figure of Germany’s capacity to pay. In all the actual circumstances, I do not believe that she can pay as much. Let those who consider this a very low figure, bear in mind the following remarkable comparison. The wealth of France in 1871 was estimated at a little less than half that of Germany in 1913. Apart from changes in the value of money, an indemnity from Germany of $2,500,000,000 would, therefore, be about comparable to the sum paid by France in 1871; and as the real burden of an indemnity increases more than in proportion to its amount, the payment of $10,000,000,000 by Germany would have far severer consequences than the $1,000,000,000 paid by France in 1871.”

A capacity of $40,000,000,000 or even of $25,000,000,000 is, therefore, not within the limits of reasonable possibility. It is for those who believe that Germany can make an annual payment amounting to hundreds of millions sterling to say in what specific commodities they intend this payment to be made and in what markets the goods are to be sold. Until they proceed to some degree of detail, and are able to produce some tangible argument in favor of their conclusions, they do not deserve to be believed.”

“… if the Allies were to “nurse” the trade and industry of Germany for a period of five or ten years, supplying her with large loans, and with ample shipping, food, and raw materials during that period, building up markets for her, and deliberately applying all their resources and goodwill to making her the greatest industrial nation in Europe, if not in the world, a substantially larger sum could probably be extracted thereafter; for Germany is capable of very great productivity.” […]

“It is true that in 1870 no man could have predicted Germany’s capacity in 1910. […] The fact that we have no adequate knowledge of Germany’s capacity to pay over a long period of years is no justification (as I have heard some people claim that, it is) for the statement that she can pay $50,000,000,000.”

The future in his view was then going to be bleak:

The Treaty includes no provisions for the economic rehabilitation of Europe,—nothing to make the defeated Central Empires into good neighbors, nothing to stabilize the new States of Europe,” […]

An enormous part of German industry will, therefore, be condemned inevitably to destruction. The need of importing foodstuffs will increase considerably at the same time that the possibility of satisfying this demand is as greatly diminished. In a very short time, therefore, Germany will not be in a position to give bread and work to her numerous millions of inhabitants, who are prevented from earning their livelihood by navigation and trade”

In the last chapter, he offered some alternative measures, which were clearly not taken in 1919 but which may have influenced the Marshall Plan after the World War II.

“I do not intend to enter here into details, or to attempt a revision of the Treaty clause by clause. I limit myself to three great changes which are necessary for the economic life of Europe, relating to Reparation, to Coal and Iron, and to Tariffs.

Reparation.—[…] I suggest, […], the following settlement:—

(1) The amount of the payment to be made by Germany in respect of Reparation and the costs of the Armies of Occupation might be fixed at $10,000,000,000.

(2) The surrender of merchant ships and submarine cables under the Treaty, of war material under the Armistice, of State property in ceded territory, of claims against such territory in respect of public debt, and of Germany’s claims against her former Allies, should be reckoned as worth the lump sum of $2,500,000,000, […].

(3) The balance of $7,500,000,000 should not carry interest pending its repayment, and should be paid by Germany in thirty annual instalments of $250,000,000, beginning in 1923.

Coal and Iron.—(1) The Allies’ options on coal under Annex V. should be abandoned, but Germany’s obligation to make good France’s loss of coal through the destruction of her mines should remain.

Tariffs.—A Free Trade Union should be established under the auspices of the League of Nations of countries undertaking to impose no protectionist tariffs whatever against the produce of other members of the Union, Germany, Poland, the new States which formerly composed the Austro-Hungarian and Turkish Empires, […] The adherence of other States would be voluntary from the outset. But it is to be hoped that the United Kingdom, at any rate, would become an original member.”

I strongly recommend the book. It not only gives an insight into the Peace Conference, the Treaty of Versailles, and how not to end a war, but it also gives a fabulous opportunity to read a very rich and readable book from John Maynard Keynes, a figure of which importance cannot be overstated.

(1) You may find it here at the Guttenberg Project.

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