ABSTRACT
This chapter argues that in the context of the period, Keynes's theoretical assumption of a closed economy was consistent with a policy practice based on what the author calls 'practical protectionism'. By this term the author understands whatever practical measures may be required, in order to pursue effectively the primary objective of securing full employment in the national economy. In present-day conditions such practical measures require a much more radical departure from the liberal norms of economic policy, if the same objective is to be pursued. The chapter looks at the clearest example of Keynes's practical protectionism, his 1933 article 'National self-sufficiency'. Three major policy debates in which Keynes played a central role are studied - the return to gold in 1925, the tariff question in 1930, and Bretton Woods. The three debates demonstrate the consistent application of the principles of practical protectionism. The chapter suggests some implications arising from the very different conditions facing British policy-makers today.
