Keynes’s paradox, which few could grasp and which many would find unacceptable today if expressed in ordinary language, is that horrendous events may have trivial causes, and easy remedies.
This is an ambitious and impressive biography of one of the most influential men of the last century. Robert Skidelsky was a pure historian before turning his attention to economics; and in this book he attempts to do justice to Keynes’s moment in history as well as his ideas. It does not make for light reading. After trying to read Keynes’s own General Theory and finding many parts of it impenetrable, I hoped that Skidelsky’s book would provide a gentler introduction to Keynes’s ideas. But this this book is not economics for dummies.
The hardest going sections were not, however, the bits devoted to economic theory, but the detailed reports of negotiations and plans undertaken by Keynes in his many official capacities. Here is just an example:
Keynes’s main effort to get the Stablization Fund to put on the clothes of the Clearing Union was his proposal to monetise unitas. The crucial structural difference between the Clearing Bank and the Stabilization Fund set-ups was that in the Keynes Plan member central banks banked with the central banks. Member central banks would subscribe their quotas to the Fund’s account…
And so on. Probably there are a fair number of readers who could follow this sort of writing with interest, but at the moment I am not one of them.
It would be seriously unfair, however, to suggest that the whole of the book is like this. Many parts are quite entertaining. The beginning years are especially so, when Keynes was in Cambridge and then a member of the famed Bloomsbury Group. I was surprised and amused at the open homosexuality of Keynes’s milieu, and the fluidity of his sexual life. Of more lasting interest, of course, is the intellectual climate in which the young economist was growing up. Skidelsky is wonderful when it comes to intellectual history, and he able shows how the circulating theories shaped Keynes’s attitudes for the rest of his life. I would not have guessed, for example, that Keynes was so deeply influenced by G.E. Moore’s Principia Ethica.
Skidelsky is also very skilled in his ability to trace the growth of Keynes’s major intellectual theories. He does this by pairing the influence of the historical moment with the inner machinations of Keynes’s mind, showing how the economist used, adapted, and discarded the economic orthodoxy he inherited when faced with the Great Depression. The chapter on the General Theory—Keyne’s most important book—is lucid and will greatly aid my further understanding of macro-economics. Thus, in the most essential task of a Keynes’s biography, Skidelsky undoubtedly succeeded.
Apart from the dryness and density of some sections of the book—mostly concentrated in the last chapters, when Keynes was heavily involved in planning for the post-WWII economy—the book has other flaws. The most notable, for me, was probably a consequence of Skidelsky’s intellectual seriousness. That is, he is so focused on Keynes’s ideas that Keynes himself can be left behind. Strangely, though one learns a great deal about Keynes, one seldom feels that one has “met” him. The economist’s personality remains rather vague and distant.
It would be generous to call this biography a page-turner. But Keynes is perhaps not the ideal subject for a readable biography. As Skidelsky repeatedly notes, Keynes was born into privilege and remained there the rest of his life. He was a thoroughbred member of the Establishment. Thus there is no spectacle of a struggling underdog or of rags to riches. Further, much of Keynes’s influence and activity resided in the intricacies of trade arrangements, exchange rates, currency valuations, and so on. He can come across as a hyper-competent civil servant.
There was another side to Keynes, however, which is quite a bit more attractive. As already mentioned, he was a member of the Bloomsbury Group—friends with Lytton Strachey and Virginia Woolf—and deeply valued all of the arts. He spent a great deal of time and money supporting his painter friends, and was heavily involved in the world of ballet and theater through his wife. In spite of his great practical gifts and his flair for finance, Keynes was not a crass materialist and consistently thought that the good life required more than ready cash.
Politically speaking, Keynes appears to have not been particularly ideological. He could not be readily assimilable into the Right or the Left, and instead preached a “middle way” based largely on competence rather than values. As Skidelsky notes, “Keynes was moved to wrath not so much by a ‘fiery passion for justice and equality’, as by ‘an impatience with how badly society was managed’.” This is not an altogether winsome quality, I think; though it does have a certain appeal—a world of ultra-efficient technocrats resolving problems without partisan bickering.
Indeed, as Skidelsky notes, this was largely the promise of the Keynesian Revolution, which more or less collapsed in the 1970s. In the final section of the book Skidelsky includes an even-handed evaluation of the successes and failures of Keynes’s ideas in practice. Certainly I am not qualfied to judge myself. But I do think that, as we look another depression in the face, we will be thinking an awful lot more about Keynes in the coming months.