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The German Transfer Controversy

In: The Truth of Liberal Economy

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  • Yasuo Gonjo

    (Yokohama National University)

Abstract

This chapter deals with the famous debate between Keynes and Rueff on the issue of German reparations. While Keynes criticized the excessive reparations to Germany in terms of the difficulties caused by the transfer of purchasing power, Rueff argued that “there is no transfer problem from either a theoretical or an empirical point of view.” Keynes prioritized avoiding the “political and humanitarian difficulties” of wage reductions and the impoverishment of the German people caused by reparations, while Rueff emphasized “preventing the emergence of an 'organized economy' that would deprive people of their freedom.” In this debate, a social-philosophical conflict between Keynesianism and neoliberalism was emerging outside of the boundaries of economics in the narrow sense.

Suggested Citation

  • Yasuo Gonjo, 2023. "The German Transfer Controversy," Springer Studies in the History of Economic Thought, in: The Truth of Liberal Economy, chapter 0, pages 23-28, Springer.
    • Handle: RePEc:spr:spshcp:978-981-99-0841-7_4
    DOI: 10.1007/978-981-99-0841-7_4
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