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Keynes, the socialisation of trade, and international monetary institutions

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While Keynes began formulating his ideas concerning the post-WWII international financial system in the early 1940s, the genesis of these ideas can be traced to his earlier work. The Keynes Plan represents the culmination of his search for adequate institutions that guide economic activity for the public good. The reasons given by Keynes for the establishment of an International Clearing Bank are relevant in the modern international economy, given the current imbalances in international trade. As Keynes argued for the socialisation of investment as a method to achieve full-employment in the domestic economy, he argued for the “socialisation of trade” as a method to achieve international economic balance among nations.
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Keywords: Currency Union; International Clearing Bank; Keynes Plan; Socialisation of trade; bancor

Document Type: Research Article

Publication date: September 3, 2017

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