nd also to the American Economy, which in turn affect all countries. The First World War has also had an impact on Keynes's ideas on Inflation, deflation and how money as a central focus is related. He believes that the government should have tight control over the supply of money in regards to Inflation or otherwise the Economy will be destroyed. In regards to deflation his ideas have developed to believe you have to spend and invest, to rebuild the Economy. His ideas of Liberalism have also developed and it will refer to how he believed Capitalism could survive through Liberalism and what his personal beliefs were in reference to his writings of My Early beliefs.
             During the First World War Keynes was part of the Treasury. He was in charge of the Finances of the War for Great Britain, and later on became the Treasury's Man for the Versailles Peace Negotiations. After the War Keynes resigned this post, this is because he did not agree with the Allies on the method they proposed for Germany to pay back (Reparations), for what she owed. Straight after the resignation he wrote a book on the Economic Consequences of the Peace (1919). This book is a reflection to the Impact the First World War had on Keynes's ideas. The First World War made him realise that the orthodox Economist policies were out of date, this is because the world was uncertain and always changing. So therefore I will write in some detail of what Keynes is saying, from the extracts of Essays in Persuasion concerning the chapters on The Economic Consequences of the Peace (1919). His main argument is that it is not possible for Germany to pay the Reparations to what the Allies are asking. This is because as Germany has lost the War, the destruction in its own territory is immense. The currency has depreciated, its resources are destroyed and also the starvation of the people (Keynes: 1919:6). So how is Germany able to pay for the Reparations, the Foreign Securities, Shippi...