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Keynes Goes Nuclear: Thomas Schelling and the Macroeconomic Origins of Strategic Stability

Published online by Cambridge University Press:  18 September 2019

Benjamin Wilson*
Affiliation:
Department of the History of Science, Harvard University

Abstract

Among the most important ideas in Cold War nuclear strategy and arms control was that of “stability”—the notion that by protecting weapons for use in retaliation, the superpowers would be less likely to fight a thermonuclear war. Conventional wisdom among strategists and historians of strategy has long held that stability was inherent to the logic of rational nuclear deterrence. This essay shows the conventional wisdom to be mistaken. It examines the technical practice of Thomas Schelling, who introduced the stability idea in a classic 1958 paper. Celebrated as a game theorist, Schelling was actually trained as a Keynesian macroeconomic modeler during the second half of the 1940s. In 1958, he used Keynesian techniques to frame deterrence as a stable system of dynamic adjustment, akin to the stable macroeconomic system he had modeled as a young economist. Among Schelling's fellow strategists, stability quickly became popular as a rationalization for their preferred nuclear deployment policies.

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Articles
Copyright
Copyright © Cambridge University Press 2019

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