structural:expansion, structural:scholar_edition
Socialism and managed capitalism

Socialist, communist, and left-wing liberal writers of the 19th and 20th centuries (e.g., Lenin, J.A. Hobson, John Strachey) argued that capitalism caused war (e.g. through promoting imperial or other economic rivalries that lead to international conflict). This led some to argue that international socialism was the key to peace.

However, in response to such writers in the 1930s who argued that capitalism caused war, the economist John Maynard Keynes (1883–1946) argued that managed capitalism could promote peace. This involved international coordination of fiscal/monetary policies, an international monetary system that did not pit the interests of countries against each other, and a high degree of freedom of trade. These ideas underlay Keynes's work during World War II that led to the creation of the International Monetary Fund and the World Bank at Bretton Woods in 1944, and later of the General Agreement on Tariffs and Trade (subsequently the World Trade Organization).