The Result of the Treaty of Versailles
With the end of World War I, the old international system was torn down, Europe was reorganized, and a new world was born. The European nations that had fought in the Great War emerged economically and socially crippled. Economic depression prevailed in Europe for much of the inter-war period, and debtor nations found it impossible to pay their debts without borrowing even more money, at higher rates, thus worsening the economy to an even greater degree. Germany especially was destroyed economically by World War I and its aftermath: the compensations that Britain and France had forced on Germany by the Treaty of Versailles were impossibly high. This is what the book; The Economic Consequences of the Peace is about. In this book, John Maynard Keynes has proposed his point of view to several occurrences that had taken place against Germany mainly after the war, which were caused because of The Treaty of Versailles. Before the Treaty was set, there was a conference in which the terms were being discussed and Keynes played as an advisor to the British Government. In preparation for the conference, he argued that there should be no reparations or that, at worst, German reparations should be limited to £2,000 million. He considered that there should be a general forgiveness of war debts which he considered would benefit Britain. Lastly, Keynes wanted the US Government to start a vast credit program to restore Europe to prosperity as soon as possible. Keynes general concern was that the Versailles conference should set the conditions for an overall European economic recovery. However, the conference focused on borders and national security. Reparations were set at a level that Keynes perceived would ruin Europe, Woodrow Wilson, the president of the United States at the time, refused to tolerate forgiveness of war debts and Wilson would not even let the US Treasury officials discuss the credit program. And voila, the...
Please join StudyMode to read the full document