German-Speaking Émigré Economists in Great Britain and the Analysis of the German War Economy

Abstract

Abstract The need for analysis of the German war economy became urgent after the defeat of France and the threat of an invasion of Britain by Nazi Germany after the battle of Dunkirk in the summer of 1940. The expertise of émigré scholars now was in strong demand. First, this essay discusses the series of twelve articles that Hans Singer contributed at the request of Keynes to the Economic Journal from 1940 to 1944. An important characteristic of war economies is a shortage of consumer goods, which raises the question of the appropriate rationing scheme. Therefore, the notion of a virtual price system, introduced by Erwin Rothbarth, which takes note of the welfare consequences of interventions into the free choices of consumers, is the focus of the next section. Hal C. Hillmann was a leading analyst of the German war economy, the comparative strength of the great powers, and postwar reconstruction. Finally, the article discusses the role of Nicholas Kaldor, who had firsthand knowledge as a key member of the research team of highbrow economists chaired by John Kenneth Galbraith that at the end of the war studied the effects of Allied bombing on the German war economy. Kaldor's experience, also as the director of the Research and Planning Division of the UN Economic Commission for Europe from 1947 to 1949, significantly influenced his pioneering contributions to growth theory.