The Theoretical Consequences of Mr. Churchill: Gold Standard Policy and the ‘Long Struggle of Escape’
Abstract
Keynes's attack on the British decision to return to the gold standard at the pre-war parity in 1925 proved to be prescient. But his policy advice at the time was ignored. This paper argues that the relevance of his critique of Churchill derives from it being the catalyst for the theoretical revolution associated with Keynes's principle of effective demand. Paradoxically, it was only when the theoretical revolution was aborted, and the mainstream reasserted itself that Keynes's policy advice was implemented.
Fields of Study & Subjects
Economic Theory and Policy
Political and Economic history of UK and US
Political Economy and Marxism
Publication details
- Journal / source
- Review of Political Economy
- Pages
- 1–12
- Publication date
- 3 February 2026
- Language
- EN