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The Ohlin-Keynes Debate on the German Interwar Reparations Revisited


  • Ormazabal Sánchez, Kepa Mirena


This paper analyzes the debate between Ohlin and Keynes on the question as to whether Germany was able to make the payments specified in the Dawes Plan. Keynes argued that Germany was able to collect the money but unable to transfer it to the victors because there existed an insurmountable “transfer problem”. Ohlin replied that such a “transfer problem” did not exist and, therefore, that Germany was able to make the payments stipulated by the Dawes Committee. This paper analyzes the positions of the two contenders and argues that the problems are not correctly delimited and that the theoretical bases of the contenders show serious deficiencies. It also brings to light some interesting theoretical and practical paradoxes that neither Keynes nor Ohlin dealt with.

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  • Ormazabal Sánchez, Kepa Mirena, 2008. "The Ohlin-Keynes Debate on the German Interwar Reparations Revisited," IKERLANAK 6420, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  • Handle: RePEc:ehu:ikerla:6420

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    References listed on IDEAS

    1. Lloyd A. Metzler, 1942. "The Transfer Problem Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 50, pages 397-397.
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    Cited by:

    1. Pope, Robin & Selten, Reinhard, 2013. "Currency wars not public debt may create a financial meltdown," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79862, Verein für Socialpolitik / German Economic Association.

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