How Occupied France Financed Its Own Exploitation in World War II
AbstractThe occupation payments made by France to Nazi Germany between 1940 and 1944 represent one of the largest recorded international transfers and contributed significantly to financing the overall German war effort. Using a neoclassical growth model that incorporates essential features of the occupied economy and the postwar stabilization, we assess the welfare costs of French policies that funded payments to Germany. Occupation payments required a 16 percent reduction of consumption for twenty years, with the draft of labor to Germany and wage and price controls adding substantially to this burden. Vichy%u2019s postwar debt overhang would have demanded large budget surpluses; but inflation, which erupted after Liberation, reduced the debt well below its steady state level and redistributed the adjustment costs. The Marshall Plan played only a minor direct role, and international credits helped to substantially lower the nation%u2019s burden.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 97 (2007)
Issue (Month): 2 (May)
Other versions of this item:
- Filippo Occhino & Kim Oosterlinck & Eugene N. White, 2006. "How Occupied France Financed Its Own Exploitation in World War II," NBER Working Papers 12137, National Bureau of Economic Research, Inc.
- Filippo Occhino & Kim Oosterlinck & E.N. White, 2007. "How occupied france financed its own exploitation in world war II," ULB Institutional Repository 2013/142694, ULB -- Universite Libre de Bruxelles.
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
- N4 - Economic History - - Government, War, Law, International Relations, and Regulation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sergio Rebelo, 2005.
"Real Business Cycle Models: Past, Present and Future,"
RCER Working Papers
522, University of Rochester - Center for Economic Research (RCER).
- S. Rebelo., 2010. "Real Business Cycle Models: Past, Present, and Future," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
- Sergio Rebelo, 2005. "Real Business Cycle Models: Past, Present and Future," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 217-238, 06.
- Sergio Rebelo, 2005. "Real Business Cycle Models: Past, Present, and Future," NBER Working Papers 11401, National Bureau of Economic Research, Inc.
- Rebelo, Sérgio, 2005. "Real Business Cycle Models: Past, Present and Future," CEPR Discussion Papers 5384, C.E.P.R. Discussion Papers.
- Ohanian, Lee E, 1997. "The Macroeconomic Effects of War Finance in the United States: World War II and the Korean War," American Economic Review, American Economic Association, vol. 87(1), pages 23-40, March.
- Ellen R. McGrattan & Lee E. Ohanian, 2006.
"Does Neoclassical Theory Account for the Effects of Big Fiscal Shocks? Evidence From World War II,"
NBER Working Papers
12130, National Bureau of Economic Research, Inc.
- Ellen R. M cG rattan & Lee E. Ohanian, 2010. "Does Neoclassical Theory Account For The Effects Of Big Fiscal Shocks? Evidence From World War Ii," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(2), pages 509-532, 05.
- Ellen R. McGrattan & Lee E. Ohanian, 2008. "Does neoclassical theory account for the effects of big fiscal shocks? Evidence from World War II," Staff Report 315, Federal Reserve Bank of Minneapolis.
- Mankiw, N. Gregory, 1987.
"The optimal collection of seigniorage : Theory and evidence,"
Journal of Monetary Economics,
Elsevier, vol. 20(2), pages 327-341, September.
- N. Gregory Mankiw, 1987. "The Optimal Collection of Seigniorage: Theory and Evidence," NBER Working Papers 2270, National Bureau of Economic Research, Inc.
- Piketty, Thomas, 2001. "Income Inequality in France 1901-98," CEPR Discussion Papers 2876, C.E.P.R. Discussion Papers.
- Kim Oosterlinck, 2003.
"The bond market and the legitimacy of Vichy France,"
ULB Institutional Repository
2013/142693, ULB -- Universite Libre de Bruxelles.
- Oosterlinck, Kim, 2003. "The bond market and the legitimacy of Vichy France," Explorations in Economic History, Elsevier, vol. 40(3), pages 326-344, July.
- Kim Oosterlinck, 2003. "The Bond Market and the Legitimacy of Vichy France," Working Papers CEB 03-003.RS, ULB -- Universite Libre de Bruxelles.
- Michael D. Bordo & Dominique Simard & Eugene White, 1994. "France and the Bretton Woods International Monetary System: 1960-1968," NBER Working Papers 4642, National Bureau of Economic Research, Inc.
- Rockoff, Hugh, 1981. "Price and Wage Controls in Four Wartime Periods," The Journal of Economic History, Cambridge University Press, vol. 41(02), pages 381-401, June.
- Gregg Huff & Shinobu Majima, 2012.
"Financing Japan’s World War II Occupation of Southeast Asia,"
Oxford University Economic and Social History Series
_109, Economics Group, Nuffield College, University of Oxford.
- Gregg Huff & Shinobu Majima, 2013. "Financing Japan’s World War II occupation of Southeast Asia," Working Paper 2013/02, Norges Bank.
- Gregg Huff, 2012. "Financing Japan's World War II Occupation of Southeast Asia," Economics Series Working Papers Number 109, University of Oxford, Department of Economics.
- Jérôme Blanc, 2008. "Pouvoirs et monnaie durant la seconde guerre mondiale en France : la monnaie subordonnée au politique," Post-Print halshs-00652826, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.