5 - WASHINGTON, 1941: DISCUSSIONS WITH ECONOMISTS

Summary

In the gaps between his meetings on official business, during his Washington visit Keynes circulated widely in Washington. Of particular interest were his contacts with American economists, especially staff members of the Office of Price Administration and Civilian Supply. Although his views on hog price trends following a meeting of officials on 9 July and some of his private discussions are of only limited interest, some of his exchanges and comments on the subject of the American mobilisation of resources are of more general interest.

Keynes's first comment followed a meeting at the home of Dr Laughlin Currie on 22 May. No other record of it survives in the Keynes papers.

From a letter to A. P. LERNER, 23 May 1941

I have not yet dogmatised on the question of whether or not there is immediate danger of inflation in the U.S.A. I said that I thought it was a tougher problem here than in the United Kingdom and needed careful attention. As to what danger there is I am trying to collect evidence and find it pretty confusing. Last night I was present at a gathering of youngish economists in the house of Laughlin Currie, where we discussed this. They were taking the line that the risks were small, unemployment would continue, in spite of the defence programme, on a large scale, and that even the present spending programme would not produce anything like full employment owing to its being so much concentrated in certain particular directions.