How occupied France financed its own exploitation during WW2
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’s 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’s 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.
Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 06-012.RS.
Length: 56 p.
Date of creation: Mar 2006
Date of revision:
Publication status: Published by: Centre Emile Bernheim, Bruxelles
Contact details of provider:
Postal: CP114/03, 42 avenue F.D. Roosevelt, 1050 Bruxelles
Phone: +32 (0)2 650.48.64
Fax: +32 (0)2 650.41.88
Web page: http://difusion.ulb.ac.be
More information through EDIRC
World War Two; France; Macroeconomy; Economic History; Exploitation.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-24 (All new papers)
- NEP-DGE-2006-06-24 (Dynamic General Equilibrium)
- NEP-HIS-2006-06-24 (Business, Economic & Financial History)
- NEP-MAC-2006-06-24 (Macroeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kim Oosterlinck & Loredana Ureche-Rangau & Jacques-Marie Vaslin, 2013.
"Waterloo: a Godsend for French Public Finances?,"
0041, European Historical Economics Society (EHES).
- 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.
- 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.
- Geraldine David & Kim Oosterlinck, 2012. "War, Inflation, Monetary Reform and the Art Market," Working Papers 0012, European Historical Economics Society (EHES).
- Géraldine David & Kim Oosterlinck, 2011. "War, Inflation, Monetary Reforms and the Art Market .The Belgian Art market (1944 – 1951)," Working Papers CEB 11-055, ULB -- Universite Libre de Bruxelles.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels).
If references are entirely missing, you can add them using this form.