From peace through free trade to interventionism for the peace: The development of J.M. Keynes’ thought from the First to the Second World War

International audienceThe expression “military Keynesianism”, much in use during the Cold war USA-USSR arms race, has contributed to feed suspicion that Keynes had sympathies for rearmament or war as instruments of economic recovery, or even for authoritarian regimes. His hostility toward free trade at a time of economic crisis gave him the image of someone who supports economic nationalism, which often goes hand in hand with militarism (cf. Friedrich List, 1840). A reading of Keynes’ works allows to challenge these assumptions. In fact, the pacifism has left its mark on his thought and his concern for the economic crisis is directly linked to his opposition to the war, though he considered it to be unavoidable, in the absence of a return to prosperity. The young Keynes is influenced by the Liberal thought and pacifism, which prevails among economists at the beginning of the 20th century. Close to conscientious objectors, he is then in accordance with the ideas developed by the future Nobel Peace Prize, Norman Angell, who advocates for an European disarmament. (Part I). Having become economic adviser to the Treasury in 1915 and therefore directly interested in the issue of war financing, Keynes actively militates against the option of a total war for Great Britain. He even almost resigned when the British government calls for conscription. We will show that his thought in the 1920’s is characterised by a radical critique of the revenge spirit and a call to international cooperation. The Economic Consequences of the Peace (1919) became extremely successful as a major critique of the Treaty of Versailles (Part II). Finally, we will show in a third part how, during the 1930’s, while the economic crisis persists and rearmament accelerates, Keynes develops an original theory, breaking from liberalism and being tested by the massive increase in European military expenditures. Keynes’ thought has changed in the interwar period, following a careful thought on war economic and financial issues. Indeed, the “Keynesian revolution” may have mainly emerged from empirical reflections on war causes and peace conditions. In Keynes’ thought, war, however detestable, enables the development of new solutions of economic policy and of international cooperation, through international institutions