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How Keynes came to Britain

Author

Listed:
  • Robert Skidelsky

    (University of Warwick, UK)

Abstract

I explore how Keynesian ideas made their way into British public policy. I argue that the breakdown of pre-First World War macroeconomic conditions led to a 'blocked' system, where the adjustment mechanisms presupposed by classical economics were jammed, and that Keynesian economics offered an escape from this system. I explain the Keynesian response to the new problems in monetary and fiscal policy: the gold standard impeding credit control, and the tenacity of the balanced budget rule, respectively. Finally, I outline how Keynes's ideas took hold after the Great Depression via the events at the Macmillan Committee, and their policy implications.

Suggested Citation

  • Robert Skidelsky, 2016. "How Keynes came to Britain," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(1), pages 4-19, January.
    • Handle: RePEc:elg:rokejn:v:4:y:2016:i:1:p4-19
    as

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    References listed on IDEAS

    as
    1. Cannan, Edwin, 1919. "The Paper Pound of 1797-1821," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number cannan1919.
    2. Milton Friedman & Anna J. Schwartz, 1965. "The Great Contraction, 1929–33," NBER Books, National Bureau of Economic Research, Inc, number frie65-1, March.
    3. Peden, G. C., 2000. "The Treasury and British Public Policy 1906-1959," OUP Catalogue, Oxford University Press, number 9780198207078.
    4. William Adams Brown, Jr., 1940. "The International Gold Standard Reinterpreted, 1914-1934," NBER Books, National Bureau of Economic Research, Inc, number brow40-1, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Keynes; Keynesian economics; the Great Depression; economic thought; history of economic thought; macroeconomics; monetary policy; fiscal policy; economic history; the Keynesian revolution;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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