John Maynard Keynes: war reparations and transfer problem

This article is devoted to the transfer problem. The beginnings of transfer problem are connected with the war reparation after First world war. J.M. Keynes argued, that Germany was imposed not only by primary burden, but also by secondary burden, that means decrease of the Germany export prices. B. Ohlin on the other hand argued, that deterioration of terms of trade was not necessary. Ohlin used transfer of the purchasing power. <p>Versailles treaty and its consequences for Germany and the whole Europe is also shortly mentioned in this article.