The
Review of Keynesian Studies, Vol.3 pp. 157-206
https://drive.google.com/file/d/1iMnNF5W-enSwh9RHyhrOFUrh83SmRXlA/view?usp=sharing
Keynes’s “New
Liberalism” Re-examined:
From Versailles
towards The General Theory
Toshiaki Hirai
1. Introduction
2. Keynes at the Paris Peace Conference
3. The Economic Consequences of the Peace
4. New Liberalism
5. Positioning the “New Liberalism”
6. Conclusion
Abstract
Keynes advocates his
own social philosophy, “New Liberalism”, which is based on “social justice”,
“economic efficiency”, and “individual liberty”. From the early 1920s to the
mid-30s, he persisted in his critical stance on the “Versailles System”, which
had plunged Europe into a devastating situation, first putting forward his
reconstruction plan for Europe, and then engaging in activities of persuasion
and criticism against many confusing pronouncements on reparations and war
debt. It should be noted that these activities were based on this social
philosophy and “Keynes as an economist” proceeded in tandem with them.
The
true value of Keynes’s “New Liberalism” lies in aiming at constructing a social
organization that could achieve the best “economic efficiency” subject to
“[social] justice”. Although Hobson and Hobhouse’s “New Liberalism”, which had had
great influence on British society in the period 1880s-1910s, took the same
side in its critical stance on Classical Liberalism, it is rather different from
Keynes’s version.
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