Financial repression redux
AbstractPeriods of high indebtedness have historically been associated with a rising incidence of default or restructuring of public and private debts. Sometimes the debt restructuring is subtle and takes the form of, “financial repression.” In the heavily regulated financial markets of the Bretton Woods system, a variety of restrictions facilitated a sharp and rapid reduction in public debt/GDP ratios from the late 1940s to the 1970s. In this paper, we summarize our findings for the post-World War II period for a selected group of countries and document the resurgence of financial repression in the wake of the 2007-2009 financial crises and the accompanying surge in public debts in advanced economies.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31641.
Date of creation: Jun 2011
Date of revision:
Publication status: Published in Finance and Development 2.48(2011): pp. 22-26
debt; interest rates; regulation; financial repression;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F3 - International Economics - - International Finance
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- H6 - Public Economics - - National Budget, Deficit, and Debt
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-IFN-2011-06-25 (International Finance)
- NEP-MAC-2011-06-25 (Macroeconomics)
- NEP-REG-2011-06-25 (Regulation)
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