The Dawes Plan and the New Economics

The Dawes Plan and the New Economics

The Dawes Plan and the New Economics

The Dawes Plan and the New Economics

Excerpt

Since a few months after the signing of the Treaty of Versailles an influential school of thought has been committed to a body of doctrine built around the proposition that the mechanics of exchange will seriously hinder or prevent the "transfer" of German reparation payments into foreign currencies suitable for use by Germany's creditors. The various ideas of this school have been best set out in the writings of certain English economist, notably in those of J. M. Keynes, who outlined these doctrines in two widely circulated books, The Economic Consequences of the Peace (1919) and A Revision of the Treaty (1922).

The conclusion to which these ideas pointed, and still point, is cancellation of the reparation debt--not in due time when the continued payment of reparations shall have accomplished its purpose, but prematurely, in the near future, as an unavoidable consequence of the operation of economic law. Further than that, on the principle that something which is bound to come in the near future would better be brought to pass right away, immediate cancellation has consistently been the avowed aim of many of this school.

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.