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John Maynard Keynes, Vol. 3: Fighting for Freedom, 1937-1946

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In this, the third and concluding volume of his biography of Keynes, Skidelsky offers a brilliant analysis of one of the most influential thinkers of the 20th century. Skidelsky offers a remarkable discussion of the man (as opposed to the icon) whose influence seems to have fluctuated according to conventional (received?) wisdom with regard to fundamental economic principles. Economists have either agreed or disagreed about the value of Keynes's ideas (often with more heat than light) since the publication of his major work, The General Theory of Employment, Interest, and Money (1936). As a non-economist, I have only casually observed how his principles have gone in and out of favor as the national economy itself improves, flattens out, weakens, improves, etc. I enjoyed this book because it connected a human being with the principles to which so many others have referred in books and articles. Also because, as international trade accelerates in terms of both scope and depth (largely because of the Internet and the WWW), the role of government in each country will inevitably change...especially governments in those countries which were formerly members of the U.S.S.R. as well as in other countries in Asia, notably China. Thanks to Skidelsky's book, I am now much better prepared to recognize and understand such changes. I wish I had read the second volume in the trilogy (subtitled "The Economist as Savior") before reading this one. Those who read this review are urged to do so. However, judged wholly on its own merits, this final volume (subtitled "Fighting for Freedom") is a first-rate achievement.

The last part of Robert Skidelsky's magnificent biography of J.M. Keynes is a tale about the fall of the British Empire with Keynes as one of its most clairvoyant and active go-betweens trying to avoid the disaster. Great-Britain had won the war but it was bankrupt crushed by its debt contracted to buy US weapons.
This book shows clearly through its analysis of the Bretton-Woods negotiations and the discussions about the conversion of the British debt, that the ultimate goal of the US Administration was to get Britain on its knees and to take its place as world leader.
The US prefered an alliance with the Soviet Union against Britain. Their most important negotiator H.D. White was a convinced Soviet spy.
Keynes defended exhaustingly Britain's role in world matters by begging time for a reconversion of the British industry from a war to a civilian economy and for safeguarding its Commomwealth with its preferential tariff and pound sterling payment system.
The humiliating conditions for its debt conversion imposed by the US would cripple the British economy for years.
The suicidal internecine European wars created a new world hegemon: the US.

Before the war, Keynes defended his 'Treatise' policies, but saw them applied in Germany by a very clever economist, Hjalmar Schacht, who also saved the German economy internationally by creating a bilateral trade system.
Prof. Skidelsky shows us also pregnantly the deterioration of Keynes's physical condition, aggravated by his exhausting travels, difficult (empty handed) negotiations and even hard opposition at home when he was in the US.

One could perhaps slightly criticize the exhaustive excerpts of letters or the extremely detailed evolution of the negotiations in Bretton-Woods or about British debt relief. But, all in all, this is a fascinating read.