American Power and Policy by Robert Leeson (eds.)

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By Robert Leeson (eds.)

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But you may feel confident that on this issue we are entirely of your mind’ (Keynes to Viner, 17 October 1943: box 16, folder 21, JVP). Viner was well aware of the huge financial aid the British needed to sustain their balance of payments in the transition period: only it had to be provided outside the fund, through the traditional channels of intergovernmental loans. Viner declared on many occasions that this aid should be particularly generous (Viner, 1943, p. 213; 1947, pp. 64 At that time, Keynes, though convinced about the technical superiority of his plan, was becoming more flexible towards the possibility of adopting other solutions in order to achieve some sort of agreement (Skidelsky, 2001, pp.

Moreover it set out the sort of post-war economic order the United States had to fight for. In EFG analysis and recommendations, short-term and long-term objectives were strictly related. American foreign policy had to be oriented to the attainment of a new world order consistent with its liberal-democratic creed and designed to serve its national economic interest. The Grand Area project seemed to satisfy both of these requirements. 18 The EFG itself took the initiative. 19 After the Great Depression, laissez-faire and free trade had lost their shine and a novel economic program was needed to be championed against the Nazis’ ‘new order’.

25, 30–2; Eckes, 1975, pp. 61–2). Two members of the EFG, Alvin Hansen and Benjamin Cohen,57 attended several meetings of the technical committee (Notter, 1949, pp. 141–3; Shoup, 1975, p. 37). In the technical committee Hansen was one of the representatives from the Federal Reserve Board. Together with colleagues, Emanuel A. Goldenweiser and Walter Gardner, who had previously worked out an alternative plan for the IMF,58 he tried to introduce considerable changes in the White scheme, as we can see from this personal letter to White: Since we had our conference with you, the staff at the Federal Reserve has again gone over the whole matter and Goldenweiser is sending you a summary statement of the main points.

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