Between his heart attack in 1937 and the outbreak of war, Keynes was more or less out of action. True, he continued to edit the Economic Journal, contribute to discussions of policy through The Times and the Committee on Economic Information, play a useful role in his College and contribute occasional articles of review or comment to professional journals. His energies were so much directed to achieving with the collaboration of many minds an acceptance of something similar to his views in the General Theory or in discussions of the problems of preparing for a possible war, that it is possible to deal with his work during this period, either in passing, as in the previous chapter, or in the context of his wartime activities.
KeywordsInterest Rate Monetary Policy Full Employment Foreign Asset Currency Arrangement
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- 7.Keynes also allowed for decreases in investment and sales of overseas assets or increases in overseas liabilities (on which see below). To give some indication of what happened, a comparison of 1938 and the peak war effort year of 1944 is instructive. Taking the national accounts for the two years (plus the intervening years’ declines in stockbuilding) the figures look as follows: increased output (largely achieved by 1940–1) £1320 million, decreased consumers’ expenditures £530 million, decreased investment £220 million, deterioration on current account £140 million. Figures, at 1938 constant prices, from C. H. Feinstein, National Income, Expenditure and Output of the United Kingdom, 1855–1965, (Cambridge, 1972), Appendix Table 5. The figures exclude the depreciation on wear and tear not made good during the period. This was certainly substantial after 1940.Google Scholar