Jump to ContentJump to Main Navigation
Why Not Default?$
Users without a subscription are not able to see the full content.

Jerome Roos

Print publication date: 2019

Print ISBN-13: 9780691180106

Published to Princeton Scholarship Online: May 2019

DOI: 10.23943/princeton/9780691180106.001.0001

Show Summary Details
Page of

PRINTED FROM PRINCETON SCHOLARSHIP ONLINE (www.princeton.universitypressscholarship.com). (c) Copyright Princeton University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in PRSO for personal use.date: 28 May 2022

From Great Depression to Financial Repression

From Great Depression to Financial Repression

(p.109) Seven From Great Depression to Financial Repression
Why Not Default?

Jerome Roos

Princeton University Press

This chapter considers the mass defaults of the Great Depression. The economic shock played a decisive role in depleting foreign-exchange reserves and circumscribing the debtors' ability to pay. However, the economic shock was only part of the story. In fact, the nearly universal resort to unilateral debt moratoriums in the 1930s was made possible at least in part by the relative weakness of the three enforcement mechanisms of debtor compliance, which left dispersed bondholders without the necessary leverage and coordination capacity to keep the debtors solvent while simultaneously imposing discipline on them. The chapter takes a closer look at the moratoriums themselves before turning to the conditions that caused the three enforcement mechanisms to fail. It also summarizes the consequences of the defaults.

Keywords:   sovereign default, sovereign debt, Great Depression, debt moratorium, debtor compliance

Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.