The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes

"I’m not sure that the ‘Bloomsberries,’ as Virginia Woolf named them, were sombre in Carter’s vivid depictions! The Price of Peace is a biography of an eminent, visionary economist, the story of how John Maynard Keynes came to his revolutionary ideas, refined and advanced them through his life and how they came to dominate economic thought. Carter makes a bold move as a biographer: Keynes dies in 1946 on page 390, but Carter gallops on for a good 250 more pages, tracing the battles over Keynesianism as they evolved through the New Deal, McCarthyism and the 2008 financial crisis. Carter captures the ideological warfare between luminary intellectuals like James K. Galbraith and Arthur Schlesinger and even extends to the monumental 2015 National Book Critics Circle finalist Thomas Piketty’s Capital in the Twenty-First Century . Carter begins his book with Keynes in midlife, as he’s falling in love with the Russian ballerina who became his wife, a critical turning point that informed his philosophy—and illustrates Keynes as a tangle of paradox. He was a pacifist who advocated for war. He was married to a woman but had serious amorous relationships with men. He’s so interesting, and was, at that time, quite radical. People are still debating his ideas, he was really ahead of his time. Clearly Keynes is comfortable with contradiction and his ideas are often counterintuitive—the notion, as Paul Krugman put it: “Your income is my expense and my income is your expense.” Spending more to get out of a financial depression continues to be debated. Back to your question about intellectual biography, Carter’s book illustrates that ideas originate in lived experience, and he illuminates Keynes’s experience and shows how it took root. One may think of Keynes as an economist, but Keynesianism is much more than that—he has views on war, art, culture and a vision of fairness. Keynes had a dream of a fairer and more fulfilling life for all. Carter’s writing about economic theory is so lucid, so colourful, and such a pleasant surprise for me. Indeed, that is right. We can see the drama playing out today in America with the intense battles over President Joe Biden’s Covid stimulus and relief bill. Carter seems to suggest that Keynes would have been frustrated by growing inequality and that his radical vision withered, leaving us with the question of whether good ideas can triumph on their own. The question Carter poses was: did Keynes believe that good ideas would triumph on their own? One comes away from this book thinking that Keynesianism is not a school of thought as much as a spirit of radical optimism. Perhaps not salacious but absolutely interesting to read about. At Cambridge Lytton Strachey was impressed by Keynes’s “active brain” and recruited him to the group although he was just a freshman. Keynes and Strachey were lovers but it was a rivalrous friendship, and Keynes made a habit of poaching Strachey’s lovers. He wasn’t an artist, as others were in Bloomsbury; Keynes expressed feelings of inferiority and Strachey and Clive Bell sneered at his aesthetic judgement. Keynes’s time with the Bloomsbury set, Carter argues, was a formative experience in which Keynes became skeptical of rules of conduct and edicts from the ruling elite and developed political sympathies and keen interest in the Liberal Party. His relations with the Bloomsbury crowd seemed to provide him with a keen understanding of the post- World War One world. Support Five Books Five Books interviews are expensive to produce. If you're enjoying this interview, please support us by donating a small amount . He has this great line: “If Germany is to be milked, she must not first of all be ruined.” Once again, he’s prophetic. Prophecy and history… This reminds me that two of the biographies we’re discussing were written by journalists who toggle between history and journalism. I have read Zachary Carter’s excellent journalism in the Huffington Post and for years read Les Payne’s Pulitzer Prize winning work in Newsday . Both have written biographies that are the richer for their fluid storytelling and research tenacity."