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.
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.
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)
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.:
- Carmen M. Reinhart & Kenneth S. Rogoff, 2008.
"The Forgotten History of Domestic Debt,"
NBER Working Papers
13946, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003.
NBER Working Papers
9908, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart, 2010. "This Time is Different Chartbook: Country Histories on Debt, Default, and Financial Crises," NBER Working Papers 15815, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "This Time Is Different: Eight Centuries of Financial Folly," Economics Books, Princeton University Press, edition 1, volume 1, number 8973.
- Douglas W. Elmendorf & N. Gregory Mankiw, 1998.
Finance and Economics Discussion Series
1998-09, Board of Governors of the Federal Reserve System (U.S.).
- Douglas W. Elmendorf & N. Gregory Mankiw, 1998. "Government Debt," Harvard Institute of Economic Research Working Papers 1820, Harvard - Institute of Economic Research.
- Elmendorf, Douglas W. & Mankiw, N, 1999. "Government Debt," Scholarly Articles 2643866, Harvard University Department of Economics.
- Douglas W. Elmendorf & N. Gregory Mankiw, 1998. "Government Debt," NBER Working Papers 6470, National Bureau of Economic Research, Inc.
- Carmen M. & M. Belen Sbrancia, 2011.
"The Liquidation of Government Debt,"
Working Paper Series
WP11-10, Peterson Institute for International Economics.
- Easterly, William R., 1989. "Fiscal adjustment and deficit financing during the debt crisis," Policy Research Working Paper Series 138, The World Bank.
- Giovannini, Alberto & de Melo, Martha, 1993. "Government Revenue from Financial Repression," American Economic Review, American Economic Association, vol. 83(4), pages 953-63, September.
- Jaejoon Woo & Manmohan S. Kumar, 2010. "Public Debt and Growth," IMF Working Papers 10/174, International Monetary Fund.
- Reinhart, Carmen & Rogoff, Kenneth, 2009. "This Time It’s Different: Eight Centuries of Financial Folly-Preface," MPRA Paper 17451, University Library of Munich, Germany.
- Lin, Justin Yifu & Fardoust, Shahrokh & Rosenblatt, David, 2012. "Reform of the international monetary system : a jagged history and uncertain prospects," Policy Research Working Paper Series 6070, The World Bank.
- Zhaomin Zou, 2013. "La transition financière chinoise : un contre-exemple de la libéralisation financière," Post-Print halshs-00904296, HAL.
- Stijn Claessens & M. Ayhan Kose, 2013.
"Financial Crises: Explanations, Types and Implications,"
CAMA Working Papers
2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Claessens, Stijn & Kose, Ayhan, 2013. "Financial Crises: Explanations, Types, and Implications," CEPR Discussion Papers 9329, C.E.P.R. Discussion Papers.
- Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises Explanations, Types, and Implications," IMF Working Papers 13/28, International Monetary Fund.
- Aizenman, Joshua & Pasricha, Gurnain Kaur, 2013.
"Why do emerging markets liberalize capital outflow controls? Fiscal versus net capital flow concerns,"
Journal of International Money and Finance,
Elsevier, vol. 39(C), pages 28-64.
- Joshua Aizenman & Gurnain Kaur Pasricha, 2013. "Why do emerging markets liberalize capital outflow controls? Fiscal versus net capital flow concerns," NBER Working Papers 18879, National Bureau of Economic Research, Inc.
- Joshua Aizenman & Gurnain Pasricha, 2013. "Why Do Emerging Markets Liberalize Capital Outflow Controls? Fiscal versus Net Capital Flow Concerns," Working Papers 13-21, Bank of Canada.
- Zsolt Darvas & Jean Pisani-Ferry, 2011.
"Europe's Growth Emergency,"
IEHAS Discussion Papers
1144, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Andreas Hoffmann & Axel Loeffer, 2014.
"Low Interest Rate Policy and the Use of Reserve Requirements in Emerging Markets,"
ICER Working Papers
01-2014, ICER - International Centre for Economic Research.
- Hoffmann, Andreas & Loeffler, Axel, 2013. "Low interest rate policy and the use of reserve requirements in emerging markets," Working Papers 120, University of Leipzig, Faculty of Economics and Management Science.
- Shirakawa, M., 2012. "Sustainability of government debt: preconditions for stability in the financial system and prices," Financial Stability Review, Banque de France, issue 16, pages 169-181, April.
- Anna Shabunina & Julio Escolano & Jaejoon Woo, 2011. "The Puzzle of Persistently Negative Interest Rate-Growth Differentials," IMF Working Papers 11/260, International Monetary Fund.
- Juan Marchetti & Michele Ruta & Robert Teh, 2012. "Trade Imbalances and Multilateral Trade Cooperation," CESifo Working Paper Series 4050, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.