Economic Consequences of the Peace

A concise, influential account of how punitive postwar terms can reshape economies and political futures, useful if you want historical perspective on the economic fallout of the Iran War. After World War I Keynes attended the Versailles Conference as a delegate of the British Treasury and argued for a much more generous peace.

It was a best seller throughout the world and was critical in establishing a general opinion that the Versailles Treaty was a "Carthaginian peace." It helped to consolidate American public opinion against the treaty and involvement in the League of Nations.

The perception by much of the British public that Germany had been treated unfairly in turn was a crucial factor in public support for appeasement. The success of the book established Keynes' reputation as a leading economist.

When Keynes was a key player in establishing the Bretton Woods system in 1944 he remembered the lessons from Versailles as well as the Great Depression. The Marshall Plan after Second World War is a similar system to that proposed by Keynes in The Economic Consequences of the Peace.