Foreign debt, capital controls, and secondary markets: theory and evidence from Nazi Germany

Saved in:

Authors and Corporations:

Papadia, Andrea (Author), Schioppa, Claudio A. (Author)

Other Authors:

Schioppa, Claudio A. [Author]

Type of Resource:

E-Book

Language:

English

published:

Berlin DIW Berlin, Deutsches Institut für Wirtschaftsforschung 2022

Series:

Subjects:

Sovereign risk

Capital controls

Elite capture

Germany

Nazi regime

Foreign debt

Secondary markets

Graue Literatur

Source:

Verbunddaten SWB
Lizenzfreie Online-Ressourcen

Description
Summary:	We investigate how internal distribution motives can interfere with the economic objectives of capital controls. In order to do this, we provide a model showing that elite capture can affect optimal debt repatriations and the management of official reserves under capital controls. Relying on these theoretical insights and a wealth of quantitative and qualitative historical evidence, we study one of history’s largest debt repatriations - that of 1930s Germany. We show that the authorities kept private repatriations under strict control, thus avoiding detrimental macroeconomic effects, while allowing discretionary repatriations in order to reap internal political benefits.
Physical Description:	1 Online-Ressource (circa 71 Seiten); Illustrationen