In Our Time

The Economic Consequences of the Peace (Archive Episode)

57 snips
Sep 11, 2025
Margaret MacMillan, an esteemed historian from the University of Oxford, joins Michael Cox and Patricia Clavin to dive into John Maynard Keynes' pivotal critique of the Treaty of Versailles. They discuss Keynes' warnings about the economic fallout from the peace settlement, examining the misconceptions that fueled tensions in post-war Europe. The conversation also unpacks the legacy of reparations, the complexities of inter-allied debts, and the League of Nations' role in shaping modern governance. Keynes’ insights remain vital in today's economic discourse.
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INSIGHT

Keynes's Alarm Over Versailles

  • Keynes resigned from the Paris Peace Conference and wrote The Economic Consequences of the Peace in protest at the treaty terms.
  • He warned the Treaty of Versailles would be economically disastrous for Europe and particularly Germany.
INSIGHT

Paris Became A Makeshift World Government

  • The Paris conference intended full negotiation but ended up issuing take-it-or-leave-it terms to defeated states.
  • Delegates discovered they were acting as a de facto world government amid revolutions, hunger and disease.
INSIGHT

Rushed Peace Undermined Viability

  • The hurried nature of the peace process weakened the settlement's prospects for success.
  • Melancholy conditions and time pressure made a satisfactory comprehensive peace unlikely.
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