to the arguments of Keynes, or at least his followers, who draw a direct line between the economic conditions created by the Peace Treaty and the rise of belligerent regimes in Europe. For his part, revisionist historian Niall Ferguson is another who does not share the view that the Treaty of Versailles was punitive and an economic disaster: In reality, the peace terms were not unprecedented in their harshness, and the German hyperinflation was mainly due to the irresponsible fiscal and monetary policies adopted by the Germans themselves. They thought they could win the peace by economic means. In British minds they did. The Germans were also more successful than any other country in defaulting on their debts, including the reparations demanded from them by the Allies. However, this victory was pyrrhic: it was won by democratic politicians at the expense of democracy and their own power. Keynes on rearmament During the 1930s, Keynes, unlike many of his followers, was an early advocate of rearmament to deter what he referred to as the "brigand powers" of Germany, Japan and Italy. In July 1936, Keynes wrote a letter to the editor of the New Statesman: A state of inadequate armament on our part can only encourage the brigand powers who know no argument but force, and will play, in the long run, into the hands of those who would like us to acquiesce by inaction in these powers doing pretty much what they like in the world. [...] Can I not persuade you that the collective possession of preponderant force by the leading pacific powers is, in the conditions of today, the best assurance of peace. After World War II Keynes was a highly influential advisor to the British government during the Second World War. He was head of the British team that negotiated the Bretton Woods Agreement with the American team led by Harry Dexter White. In general, the Agreement suggested a monetary system similar to that proposed by Keynes in The Economic Consequences of the Peace. His proposal for an International Clearing Union formed the basis of proposals for the International Monetary Fund and the International Bank for Reconstruction and Development – later the World Bank and Bank for International Settlements. However, the operation of these institutions was not as liberal as Keynes would have wished. Keynes was also responsible for negotiating financial support for Britain during the Second