chapter  9
The Influence of Keynesian Thought on German Economic Policy
ByDudley Dillard
Pages 12

John Maynard Keynes had a special relation with Germany dating from his participation in the Versailles peace conference as a member of the British delegation in 1919. Between the wars, Keynes followed, and participated in, efforts to stabilize and rebuild the German economy. He served as an unofficial adviser to the German government during the middle stages of the hyperinflation. A transformation in German academic economics after World War II included wide acceptance of Keynes's General Theory as well as other aspects of Anglo-American economics. During the Adenauer-Erhard era, German economic policy was little affected by Keynesian thought. In 1967, with Karl Schiller as minister of economics, the most Keynesian legislation of the postwar era, the Stability and Growth Act, was passed. It charges the government with four macroeconomic goals: a stable price level, high employment, stable growth, and equilibrium in West Germany's international balance of payments.