Keynes’ Path to 1936's ‘ General Theory ’: a tale of American engagement and an Irish excursion

Discussing the political engagement of John Maynard Keynes between May 1929 and June 1934, this paper argues that Keynes, believing that he had few prospects of political influence in the UK, turned to activities in the USA. The paper shows how Keynes changed his methods of influencing political decision makers, relying less on personal prestige and direct connections with leaders – although those remained important – and instead seeking influence through institutions. In developing the arguments of his 1936 masterpiece, The General Theory of Employment, Interest and Money, Keynes therefore provided helpful intellectual support for progressive members of the Roosevelt administration. The paper concludes that his behaviour reflected changes in the nature of British politics, and willingness to adapt after the failure of attempts to generate consensus among economists and political leaders around the publication of A Treatise on Money in October 1930. It demonstrates just how keenly Keynes sensed fruitful possibilities for influence with the Roosevelt administration in the USA and the value which he derived by re-establishing connections which had lain dormant since his earlier publicity campaign for the American edition of Economic Consequences of the Peace.