The Supply of Money and Reichsbank Financing of Government and Corporate Debt in Germany, 1919–1923

1984 ◽  
Vol 44 (2) ◽  
pp. 499-507 ◽  
Author(s):  
Steven B. Webb
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
World War I ◽  
Money Supply ◽  
Price Stability ◽  
Corporate Debt ◽  
Social Programs ◽  
World War ◽  
The Third ◽  
The Government

During the five years of inflation, price stability, and hyperinflation in Germany after World War I, three factors determined the growth of the money supply. First, the Reichsbank freely issued money in exchange for whatever government or corporate debt the private sector did not wish to hold at the official discount rate. Second, the government persistently ran large deficits. Political instability and the inflation itself prevented taxation adequate to pay for social programs, subsidies to the railroad and businesses, and reparations to the Allies. The third factor was expectations of inflation, which, as they became more pessimistic, led people to hold less and monetize more of the outstanding stock of debt. Thus, the money supply was partly endogenous and partly dependent on government fiscal policy. The monetary policy of the Reichsbank, although essential to the inflation process, was a constant and passive one until stabilization at the end of 1923.

War and the Next Lesson

Money ◽  
2017 ◽  
Author(s):  
John Kenneth Galbraith ◽  
James K. Galbraith
Keyword(s):  
United States ◽  
Monetary Policy ◽  
World War Ii ◽  
Fiscal Policy ◽  
World War I ◽  
Great Depression ◽  
The United States ◽  
World War ◽  
John Maynard Keynes ◽  
The Great Depression

This chapter examines the lessons of World War II with respect to money and monetary policy. World War I exposed the fragility of the monetary structure that had gold as its foundation, the great boom of the 1920s showed how futile monetary policy was as an instrument of restraint, and the Great Depression highlighted the ineffectuality of monetary policy for rescuing the country from a slump—for breaking out of the underemployment equilibrium once this had been fully and firmly established. On the part of John Maynard Keynes, the lesson was that only fiscal policy ensured not just that money was available to be borrowed but that it would be borrowed and would be spent. The chapter considers the experiences of Britain, Germany, and the United States with a lesson of World War II: that general measures for restraining demand do not prevent inflation in an economy that is operating at or near capacity.

Fiscal News and Inflationary Expectations in Germany after World War I

1986 ◽  
Vol 46 (3) ◽  
pp. 769-794 ◽  
Author(s):  
Steven B. Webb
Keyword(s):  
World War I ◽  
Price Stability ◽  
World War ◽  
Tax Reforms ◽  
Government Deficits ◽  
Political Events ◽  
Negative News ◽  
Inflation Tax ◽  
The Government

Inflation in Germany from 1919 to 1923 resulted from the accumulation and the anticipation of government deficits. Inflationary expectations depended therefore on fiscal news. Allied demands for reparations, the occupation of the Ruhr, and domestic revolts were important negative news and led to increased inflation. Tax reforms and eventually the end to government deficits were important positive news and ushered in periods of price stability. Political events were fiscal news as they changed the chances for the government to balance the budget.

scholarly journals Effects of trend inflation on monetary policy and fiscal policy shocks in Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Thanh Ha ◽  
Finch Nigel
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
New Keynesian ◽  
Method Of Moment ◽  
Content Type ◽  
Keynesian Model ◽  
Trend Inflation ◽  
Policy Shocks ◽  
The Government

PurposeThis paper analyzes variations in effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region and welfare costs due to changes in trend inflation.Design/methodology/approachThe authors develops the New-Keynesian model, which the central banks can employ either nominal interest rate (IR rule) or money supply (MS rule) to conduct monetary policies. They also use their budgets for capital and recurrent spending to conduct fiscal policies. By using simulated method of moment (SMM) for parameter estimation, the authors characterize Vietnam's economy during 1996Q1 -2015Q1.FindingsThe results report that consequences of monetary policy and fiscal policy shocks become more serious if there is a rise in trend inflation. Furthermore, the money supply might not be an effective instrument and using the government budget for recurrent spending produces severe consequences in the high-trend-inflation economy.Originality/valueThis is the first paper that examines the effects of trend inflation on the monetary and fiscal policy implementation in the case of Vietnam.

scholarly journals Coordination or Dominance of Fiscal and Monetary Policy in Egypt

2019 ◽  
Vol 11 (12) ◽  
pp. 28
Author(s):  
Emad Omar Elhendawy
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
Granger Causality ◽  
Money Supply ◽  
Budget Deficit ◽  
Granger Causality Test ◽  
Causality Test ◽  
The Third ◽  
Relationship Of

This study investigates to what extent of coordination between the fiscal and monetary policies in Egypt in the period 1980-2017, it has been adopted in its methodology on the vector error correction and Granger causality test. It concludes that there is a significant relation between money supply and budget deficit on one hand and inflation on the other hand, and that fiscal policy is dominant in monetary policy, as a change of 10% of the budget deficit results in an increase in the inflation rate of 8.1%. As for the Granger causality test. Thus stresses the existence of causal relationship to one direction of inflation against both the budget deficit and the money supply, which affects the budget deficit in the second slowdown. Then it feeds the budget deficit and inflation in the third year, which in turn feeds the budget deficit in the fourth year and the causal relationship between inflation and money supply has concluded that there is a one-way causal relationship of money supply to inflation after four slows and then inflation affects the money supply from the fifth to the tenth slowdown. As for the relationship of the budget deficit to money supply, there may be a one-way causal relationship between the budget deficit and the money supply from the second to the tenth year, except the third year, which also confirms the dominance of fiscal policy on monetary policy in Egypt in the period under consideration.

The Making of a Cause Lawyer

2018 ◽  
Author(s):  
Jens Meierhenrich
Keyword(s):  
World War I ◽  
Military Service ◽  
Historical Context ◽  
Social Democracy ◽  
Early Years ◽  
World War ◽  
The Third ◽  
Nazi Era

This chapter provides the biographical and historical context necessary for understanding Fraenkel and his time. The analysis is organized into three sections: his early years, the Weimar Years, and the Nazi years. In the first section, I trace Fraenkel’s upbringing in a secular household influenced by the so-called Jewish Enlightenment, or Haskalah; explore the origins of his life-long predilection for social democracy; and recount the intellectual effects of his military service in World War I. In the second section, I reconstruct Fraenkel’s education and socialization as a young lawyer and interpret Fraenkel’s most important Weimar-era writings. I explicate the roles they played in preparing the ground for the writing of The Dual State. In the third section, finally, I commence my analysis of Fraenkel’s Nazi-era thought and conduct up until his escape to freedom in 1938.

Theorizing About Post-Keynesian Economics in Australasa

2013 ◽  
pp. 411-435
Author(s):  
Paul Dalziel ◽  
J. W. Nevile
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Monetary Policy ◽  
World War Ii ◽  
Fiscal Policy ◽  
Aggregate Demand ◽  
World War ◽  
Keynesian Economics ◽  
Low Levels ◽  
Monetary And Fiscal Policy

There was much in common in the development of post-Keynesian economics in Australia and New Zealand, but there were also many differences. Both countries shared a common heritage in higher education. In the first twenty-five years after World War II, both countries adopted broadly Keynesian policies and experienced very low levels of unemployment. Increasingly over these years more theorizing about macroeconomic policy had what now would be called a post-Keynesian content, but this label was not used till after the event. In both countries, apart from one important factor, the experience of actual monetary policy and theorizing about it were similar. Keynesian ideas were more rapidly adopted in Australia than in many other countries. Not surprisingly for a couple of decades after 1936, analysis of policy and its application was Keynesian rather than post-Keynesian, with fiscal policy playing the major role. The conduct of both monetary and fiscal policy depends on the theory of inflation. This chapter examines post-Keynesian economics in Australasia, focusing on aggregate demand, economic growth, and income distribution policy.

The Government of War

2014 ◽  
Vol 46 (4) ◽  
pp. 791-793
Author(s):  
Dina Rizk Khoury
Keyword(s):  
Middle East ◽  
World War I ◽  
Identity Formation ◽  
Global Scale ◽  
State System ◽  
World War ◽  
Post Cold War ◽  
Security Services ◽  
Short Piece ◽  
The Government

I write this piece as Iraq, following Syria, descends into a civil war that is undermining the post–World War I state system and reconfiguring regional and transnational networks of mobilization and instrumentalizations of violence and identity formation. That the Middle East has come to this moment is not an inevitable product of the artificiality of national borders and the precariousness of the state system. It is important to avoid this linear narrative of inevitability, with its attendant formulations of the Middle East as a repository of a large number of absences, and instead to locate the current wars in a specific historical time: the late and post–Cold War eras, marked by the agendas of the Washington Consensus and the globalization of neoliberal discourses; the privatization of the developmental and welfare state; the institutional devolution and multiplication of security services; and the entrenchment of new forms of colonial violence and rule in Israel and Palestine and on a global scale. The conveners of this roundtable have asked us to reflect on the technopolitics of war in the context of this particular moment and in light of the pervasiveness of new governmentalities of war. What I will do in this short piece is reflect on the heuristic and methodological possibilities of the study of war as a form of governance, or what I call the “government of war,” in light of my own research and writing on Iraq.

Ukraine and the Challenges of Post-Totalitarian Transit (1990-2019)

2021 ◽  
Author(s):  
Volodymyr Holovko ◽  
◽  
Larysa Yakubova ◽  
Keyword(s):  
World War I ◽  
Essential Feature ◽  
State Building ◽  
Self Awareness ◽  
World War ◽  
Successful Completion ◽  
Wide Audience ◽  
The Third ◽  
The World ◽  
History Of

The key problems of nation- and state-building are revealed in the concept of the chronotope of the Ukrainian “long twentieth century,” which is a hybrid projection of the “long nineteenth century.” An essential feature of this stage in the history of Ukraine and Ukrainians is the realization of the intentions of socioeconomic, ethnocultural and political emancipation: in fact, the end of the Ukrainian revolution, which began in the context of World War I and the destruction of the colonial system. The third book tells about the contradictions of post-Soviet transit. The three modern revolutions, the development of “oligarchic republics,” the subjectivization of Ukraine in the world through self-awareness of the European choice are visible manifestations of the final stage of the century-old Ukrainian revolution and anti-colonial liberation war. The essential transformations of the Ukrainian project are understood in the broad optics of post-totalitarian transit, the successful completion of which now rules for the national idea of Ukraine. For a wide audience.

scholarly journals Relative Effectiveness of Monetary and Fiscal Policies on Output Stabilization in Developing Countries: Evidence from Rwanda

2017 ◽  
Vol 10 (1) ◽  
pp. 220
Author(s):  
Kabanda Richard ◽  
Peter W. Muriu ◽  
Benjamin Maturu
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Relative Effectiveness ◽  
Variance Decomposition ◽  
Var Model ◽  
Fiscal Policies ◽  
Impulse Responses ◽  
Exogenous Variables ◽  
Output Stabilization ◽  
The Government

The aim of this study was to explain the relative effectiveness of monetary and fiscal policies in explaining output in Rwanda. The study used a sample of quarterly data for the period 1996-2014. Applying a recursive VAR, the study used 12 variables, including 5 endogenous and 7exogenous variables to the benchmark model and other two specifications were attempted to capture the true contribution of monetary and fiscal policies to variations in nominal output. Obtained results using impulse responses and variance decomposition provide evidence that monetary policy is more effective than fiscal policy in explaining changes in nominal output in Rwanda. In addition, monetary policy explains better output when the VAR model contains domestic exogenous variables than when they are not included, suggesting the relevance of including domestic exogenous variables in VAR specification of monetary and fiscal policies effectiveness on economic variables. Another suggestion is that in order to achieve higher growth, the government of Rwanda should rely more on monetary policy as compared to fiscal policy.

Politics and Society in Upper Silesia Today: The German Minority Since 1945

1996 ◽  
Vol 24 (2) ◽  
pp. 269-285 ◽  
Author(s):  
Karl Cordell
Keyword(s):  
Soviet Union ◽  
World War I ◽  
Twelfth Century ◽  
Overwhelming Majority ◽  
World War ◽  
Upper Silesia ◽  
The Third ◽  
German Minority

In 1919, Polish nationalist forces led by Josef Pilsudski succeeded in re-establishing an independent Polish state. Poland had disappeared from the map of Europe in 1794 following the third partition. It had been devoured by its traditional enemies; Prussia, Austria and Russia. Historically, Poland had been a state without fixed borders, and via a combination of changing dynastic alliances and a pattern of eastward migration, from the twelfth century formerly Slav areas east of the rivers Oder and Neisse became progressively germanicized. By 1921, following the end of World War I, several peace conferences, and after a series of referenda in disputed (former) German areas and a series of wars with all of its neighbors, including an especially successfully prosecuted war against the embryonic Soviet Union, the new state had managed to become a state which incorporated virtually all ethnic Poles. However, in addition to incorporating the overwhelming majority of ethnic Poles, the borders of the new Polish state also included huge numbers of other ethnic, religious and national groups.

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