14 - The Embedded Liberalism of Bretton Woods

Summary

This chapter examines the embedded liberal perspective of the Anglo-American thinkers who played a lead role in designing Bretton Woods order, including John Maynard Keynes and Harry Dexter White. These thinkers endorsed the broad liberal goals of boosting global prosperity, international peace, and individual freedom, but they argued that these goals could only be met with a new kind of institutionalized liberal multilateralism that would make an open world economy compatible with various kinds of active public management of the economy. The roots of embedded liberalism can be found in efforts to reformulate the international side of classical economic liberal thought earlier in the twentieth century, including by thinkers such as Jehangir Coyajee.and John Hobson. The promoters of embedded liberalism at Bretton Woods sought to accommodate not just new ideas of domestic social security and activist macroeconomic management in Western Europe and North America but also the Soviet Union’s commitment to central planning and neomercantilist views prominent in many less industrialized regions. At the same time, they made much less effort to engage with the perspectives discussed in the second part of this volume.