SPONSORED BY THE STATES AND SOCIAL STRUCTURES COMMITTEE OF THE SOCIAL SCIENCE RESEARCH COUNCIL The Political Power of Economic Ideas: Keynesianism across Nations EDITED BY Peter A. Hall t£SP ! UERJ stsuotsa Princeton University Press Princeton, N ew Jersey \i Copyright © 1989 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, Guildford, Surrey All Rights Reserved Library of Congress Cataloging-in-Publication Data The Political power of economic ideas : Keynesianism across nations edited by Peter A. Hall. p, ClH. “Product; of a working group . . . established by the States and Social Structures Commitfee of the Social Science Research Council”—Pref. Includcs'tndcx. ISBN 0-691-07799-1 (alk ‘paper) ISBN 0-691-02302-6 (pbk.) 1. Keynesian economics. 1. Economic policy. I. Hall, Peter A. II. Social Science Research Council (U.S.). Committee on Stales and Social Structures. HB99.7.P67 1989 330,15'6h—del 9 88-32680 This book has been composed in Times Roman Clothbound editions of Princeton University Press books are printed on acid-free paper, and binding materials are chosen for strength and durability. Paperbacks, although satisfactory for personal collections, arc not usually suitable for library rebinding. Printed in the United States of America by Princeton University Press, Princeton, New Jersey The Political power of economic ideas : Keynesianism across nations 1 33P766H vtls0Q0208149 - Biblioteca do IE5P CONTENTS List of Contributors VII Preface ix ! Introduction 3 PETER A. HALL 2 The Spread of Keynesian Doctrines and Practices in the United States 27 WALTER S. SALANT 3 Ideas and Politics: The Acceptance of Keynesianism in Britain and the United States 53 MARGARET WEIR 4 Keynesian Politics: The Political Sources of Economic Policy Choices 87 PETER A. GOUREVITCH 5 Keynes, Keynesianism, and State Intervention 107 DONALD WINCH 6 The Miscarriage of Necessity and Invention: Proto-Keynesianism and Democratic States in the 1930s 129 BRADFORD A. LEE 7 The Development of Keynesianism in France 171 PIERRE ROSANVALLON 8 Keynes and Italian Economics 195 MARCELLO DE CECCO 9 What Is Keynesian About Deficit Financing? The Case of Interwar Germany 231 HAROLD JAMES vi CONTENTS 10 The Underdevelopment of Keynesianism in the Federal Republic of Germany CHRISTOPHER S. ALLEN 11 The Diffusion of Keynesian Ideas in Japan ELEANOR M. HADLEY 12 Keynesianism and the Scandinavian Models of Economic Policy JUKKA PEKKAKINEN 13 How the Keynesian Revolution Was Exported from the United States, and Other Comments ALBERT O. HIRSCHMAN 14 Conclusion: The Polities of Keynesian Ideas PETER A. HALL CONTRIBUTORS Christophers. Allen Department of Political Science, University of Georgia Marcello de Cecco Department of Economics, University of Rome Peter A. Gourevitch School oflntemational and Pacific Studies, University of California at San Diego Eleanor M. Hadley Jackson School of International Studies, University of Washington, Seattle Peter A. Hall Department of Government and Center for European Studies, Harvard University Albert O. Hirschman Institute for Advanced Study, Princeton Harold James Department of History, Princeton University Bradford A. Lee Naval War College, Newport, Rhode island Jukka Pekkarincn Labour Institute for Economic Research, Helsinki Pierre Rosanvallon Fondation Saint-Simon and Ecole des Hantes Etudes en Sciences Sociales, Paris Walter S, Saiant The Brookings Institution, Washington, D.C. Margaret Weir Department of Government and Center for European Studies, Harvard University Donald Winch School of Social Sciences, University of Sussex PREFACE This volum e is the product of a working group on the diffusion of economic knowledge established by the States and Social Structures Committee of the So­ cial Science Research Council (SSRC). Recent work on the role of the state in politics has drawn increasing attention to the importance of ideas in the policy process. Accordingly, this group was asked to investigate the ways in which eco­ nomic ideas are diffused across nations and acquire influence over policy. The natural case for such a study was that of Keynesian ideas, which originated in the interwar years but became a definitive component of economic policy making in the era after World War II, As befits the interdisciplinary' nature of the problem, the chapters of this book reflect the collaborative efforts of scholars from a variety of nations and several disciplines; economics, history, political science, and sociology. Two collective meetings were held during the three years in which these essays were refined to discuss common issues and to go over drafts of each chapter. At several junctures in this process, new contributions were solicited to deal with important issues that emerged in these discussions. We are grateful to those who made this project possible, the members of the States and Social Structures Committee and especially to Theda Skocpol and Al­ bert O. Hirschman, who took a particular interest in this project. In addition, a number of other people not represented in this book made important contributions to our discussions. These include; Ira Katznelson, Stephen Krasner, Dietrich Rueschemeyer, and Kerry Schott. Finally, three staff associates at the SSRC helped immeasurably with this project. Martha Gephart organized the initial stages of collaboration; Yasmine Ergas organized our second conference; and Nikiforos Diamandouros saw the volume into press. Peter A. Halt Cambridge, Mass. June 1988 THE POLITICAL POWER OF ECONOMIC IDEAS te i te