Financial Repression (Reinhart et al.)

Financial repression redux by Carmen M. Reinhart, Jacob F. Kirkeggard and Belen Sbrancia published by IMF and indicated By Silvio Figer (06/2011). With public and private debt at record or near-record levels, reducing public deficits and debt is likely to remain at the forefront of policy discussions in most advanced economies for the foreseeable future…Because these debt reduction channels are not mutually exclusive, debt reduction have often combined more than one of these avenues. Financial repression played an important role in reducing debt-to-GDP ratios after World War II, and it has recently reemerged, along with large increases in public debts, in advanced economies.