Consensus vs. freedom of consensus upon freedom? From Washington disorder to the rediscovery of Keynes

The paper retraces the history of the debate on the Washington Consensus according to the four-stage partition Consensus, Confusion, Contention, Conclusion, with particular attention to the criticisms evoked by the use of it as a tool for the “integrationist agenda” of the Nineties. We argue that the excessive shrinking in policy space available to developing countries is among the key factors explaining why the saga has rapidly come to a Conclusion, leaving room to the rediscovery of the “embedded liberalism” of Bretton Woods. It is our aim to show, however, that Keynes’s plan for a new international order inspired by a consensus on freedom rather than discipline, is still the most relevant model for a new system of national capitalisms enhancing member countries’ freedom to choose.

Fighting Through Britain. The “Gift Dimension” of Keynes's Quest for a New Global Order

Dissatisfied with both Skidelsky's “Fighting for Britain” approach to Keynes's quest for a new global order and its specular competitor, the “Figthing despite Britain” view, we explore the possibility of a “Fighting through Britain” approach to the issue. We claim that though Keynes was fighting for the whole world rather than for Britain only, his (unsuccessful) fighting for Britain was a major component of his overall reform project and the true telltale sign of his defeat. As a consequence, the paper focuses in particular on the American Gift asked for by Keynes in 1945. The Gift is regarded as the last and a relevant episode of the economist's lifelong search for a global system efficiently coping with the dilemmas it necessarily gives life to. With the help of the anthropological and sociological literature on gift-giving, we move beyond the strategic dimension of Keynes's diplomacy to show that the request for an American Gift to revive multilateralism at the end of WWII embodies in full - and helps to understand - Keynes's attempt to construct a new system happily combining international discipline and national freedom to choose, the former being the instrument to promote the latter.Keynes, International economic relations, Gift-giving

“Veiling The Controversies with Dubious Moral Attitudes”? Creditors and Debtors in Keynes’s Ethics of International Economic Relations

This paper addresses the enduring insistence on the moral dimension of international economic relations in Keynes’s economics and diplomacy. The issue has so far raised scarce attention in the literature, which tend to attribute some outstanding failures of Keynes’s economic diplomacy to the presumed instrumental use Keynes made of moral arguments. The paper provides a comprehensive account of the ethical arguments used by Keynes in his lifelong attempt to design a fair international order, and aims to demonstrate that this moral dimension is part of a well-defined ethics of international relations which privileges national policy space and freedom to choose.John Maynard Keynes, international economic relations, ethics, complexity

Chapter 18 of the General Theory “Further Analysed”: The Theory of Economics as A Method

In 1987, Greenwald and Stiglitz accused Keynes’s summary of the General Theory in chapter 18 of relying upon “neoclassical and Marshallian tools”. A number of contributions have on the contrary emphasized the methodological importance of this chapter, which this paper revisits in the light of A Treatise on Probability. It thereby shows that the notions of cause and dependence used to discuss the relationships between independent and dependent variables of the General Theory are related to the concept of “independence for knowledge”, which concerns logical connections between arguments rather than material connections between events. We demonstrate that such logical connections established in chapter 18 are rediscussed in chapters 19-21, where Keynes allows for probable repercussions between the factors and removes the simplifying assumptions previously introduced. After stressing the methodological continuity this method provides with the analysis of credit cycles in A Treatise on Money, we argue that chapter 18 is an indispensable tool to decode the internal text structure of the General Theory. We thus characterize the latter as a vademecum to the complex economic world, the author providing an analytical method allowing – and requiring – the readers to emulate his efforts to grasp the complexity and interdependence of the economic material.John Maynard Keynes, The General Theory, complexity, economic methodology

Coping with Complexity. Keynes and International Economic Relations in the Aftermath of WWI

In the attempt to deepen the understanding of Keynes's thought as an international macroeconomist, we explore the hypothesis of consistency between his general methodological approach to the economic material and his way of reasoning about international economic relations as shaped by WWI. We argue that the methodology of "The Economic Consequences of the Peace" reflects Keynes's attempt to cope with the attributes of the complexity characterizing the European settlement for the post-war period, and particularly 1) organic interdependence among variables at play, 2) irreducible dilemmas and situations of conflict, as well as 3) the need for external, public assistance to overcome the impasse and promote a "shared responsibilities" approach to the imbalances. Striking similarities appearing with the method of Keynes's economic diplomacy in the Forties call for further research in this sense.Keynes; complexity; international economic relations

The Economic Problem of Happiness. Keynes on Happiness and Economics

In their latest book (2008), Bruno Frey and the members of the research group he chairs at the University of Zurich announce that happiness research is leading a revolution in economics. More precisely, the revolutionary character of happiness economics would draw on measurement, on how people value goods and social conditions, as well as on policies. This paper aims to discuss critically this claim and what we identified as five crucial issues of mainstream happiness economics, i.e.: 1. the ambiguous relationship between income and happiness, 2. the “back to Bentham” approach, 3. problems of incommensurability, 4. heterogeneity and multidimensionality, 5. the scope of economics in relation to happiness. In so doing, we attempt to review John Maynard Keynes’s vision about happiness and economics, starting from a revisiting of his essay Economic Possibilities for Our Grandchildren in the light of his early unpublished writings on ethics as well as of the whole bulk of his writings in economics. We then provide reasons to argue that the rediscovery of Keynes’s legacy in this respect can be of help to point out and examine the most controversial aspects of today’s happiness research.Happiness, Happiness economics, John Maynard Keynes, Economic Possibilities for Our Grandchildren