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Germany's financial collapse in the summer of 1931 was one of the biggest economic catastrophes of modern history. It led to a global panic, brought down the international monetary system, and turned a worldwide recession into a prolonged depression. The German crisis also contributed decisively to the rise of Hitler. Soon after the crisis, the Nazi Party became the largest party of the country which paved the way for Hitler's eventual seizure of power in 1933. The reason for the financial collapse was Germany's large pile of foreign debt denominated in gold currency which condemned the government to cut spending, raise taxes, and lower wages in the middle of a worldwide recession. As the political resistance to this austerity policy grew, the German government began to question its debt obligations, prompting foreign investors to panic and sell their German assets. The resulting currency crisis led to the failure of the already weakened banking system and a partial sovereign default.Hitler managed to profit from the crisis, because he had been the most vocal critic of the reparation regime. As the financial system collapsed, his relentless attacks against foreign creditors and the alleged complicity of the German government resonated more than ever with the electorate. Sadly enough, Germany's creditors hesitated too long to take the wind out of Hitler's sails by offering debt relief. In 1931,Tobias Straumann reveals the story of the fatal crisis, demonstrating how a debt trap contributed to the rapid financial and political collapse of a European country, and to the rise of the Nazi Party

Financial crises --- Debts, External --- Banks and banking --- History --- Hitler, Adolf, --- Germany --- Economic conditions --- Politics and government --- Public debt --- Hitler, Adolf --- History of Germany and Austria --- anno 1930-1939 --- Conditions économiques --- Crises financières --- Dettes extérieures --- Banques --- Politique et gouvernement --- Conditions économiques --- Crises financières --- Dettes extérieures

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This Selected Issues paper analyzes France’s fiscal stance using a structural stochastic model. The theoretical model features a forward-looking benevolent government that needs to decide the optimal fiscal stance given the level of public debt, the cyclical position of the economy, and expectations about future shocks. This paper shows that a fiscal consolidation can help build buffers that could help France confront the next downturn from a stronger fiscal position. The analysis highlights that, on average, fiscal policy in France exhibited a deficit bias over the past four decades, being unable to react to either rising debt levels, or cyclical conditions. A model-based analysis further confirms that fiscal policy was generally looser than warranted by cyclical and debt sustainability considerations, and this is only partly due to the fact policymakers need to take decisions based on real-time output gap measures that are subject to uncertainty.

Unemployment --- Finance: General --- Financial Risk Management --- Macroeconomics --- Public Finance --- Production and Operations Management --- Industries: Service --- Fiscal Policy --- Debt --- Debt Management --- Sovereign Debt --- Macroeconomics: Production --- General Financial Markets: General (includes Measurement and Data) --- Industry Studies: Services: General --- Finance --- Public finance & taxation --- Fiscal policy --- Fiscal stance --- Fiscal consolidation --- Debt rescheduling --- Output gap --- Production --- Public debt --- Debts, External --- Economic theory --- Debts, Public --- Commodity exchanges --- Service industries --- France

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While growth in advanced economies is losing momentum amid trade tensions and policy uncertainty, activity in many emerging and low-income developing countries (EMDEs) has remained more robust, supported by still favorable financing conditions. Differences across EMDEs are large, however, and downside risks are building. Policy priorities include enhancing resilience in response to a more challenging global environment, creating fiscal space for essential development spending, containing debt vulnerabilities, and promoting strong and inclusive growth. Strengthening revenue generating capacity, enhancing public spending efficiency, and addressing infrastructure gaps are critical for reaching the 2030 Sustainable Development Goals.

Exports and Imports --- Macroeconomics --- Public Finance --- Sustainable Development --- Debt --- Debt Management --- Sovereign Debt --- Fiscal Policy --- Economic Growth and Aggregate Productivity: General --- International Lending and Debt Problems --- Public finance & taxation --- Economic growth --- International economics --- Development economics & emerging economies --- Public debt --- Fiscal policy --- Inclusive growth --- Debt sustainability --- Sustainable Development Goals (SDG) --- External debt --- Development --- Debts, Public --- Economic development --- Debts, External --- Sustainable development --- Angola

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Economic activity shows incipient signs of stabilization in some sectors while it remains weak in others. The fiscal consolidation efforts continued and the domestic primary balance at end-June 2018 improved by 0.3 percent of GDP relative to the same period in 2017. Inflation has turned positive at 0.9 percent in September 2018 and is expected to remain below the WAEMU convergence criterion of up to 3 percent during the program period. The government is revisiting its strategy on the two public banks and is relaunching their privatization. The socio-political tensions have abated but the situation remains uncertain, particularly in light of the upcoming elections at end-2018.

Budgeting --- Exports and Imports --- Finance: General --- Macroeconomics --- Public Finance --- Debt --- Debt Management --- Sovereign Debt --- International Lending and Debt Problems --- Fiscal Policy --- Taxation, Subsidies, and Revenue: General --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- International economics --- Finance --- Budgeting & financial management --- Public debt --- External debt --- Fiscal stance --- Revenue administration --- Expenditure --- Debts, Public --- Debts, External --- Fiscal policy --- Revenue --- Expenditures, Public --- Togo

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Has monetary policy in advanced economies been less effective since the global financial crisis because of deteriorating household balance sheets? This paper examines the question using household data from the United States. It compares the responsiveness of household consumption to monetary policy shocks in the pre- and post-crisis periods, relating changes in monetary transmission to changes in household indebtedness and liquidity. The results show that the responsiveness of household consumption has diminished since the crisis. However, household balance sheets are not the culprit. Households with higher debt levels and lower shares of liquid assets are the most responsive to monetary policy, and the share of these households in the population grew. Other factors, such as economic uncertainty, appear to have played a bigger role in the decline of households’ responsiveness to monetary policy.

Monetary policy --- Econometric models. --- Exports and Imports --- Finance: General --- Macroeconomics --- Financial Markets and the Macroeconomy --- Monetary Policy --- Consumer Economics: Empirical Analysis --- Macroeconomics: Consumption --- Saving --- Wealth --- Urban, Rural, and Regional Economics: Household Analysis: General --- International Lending and Debt Problems --- Portfolio Choice --- Investment Decisions --- Aggregate Factor Income Distribution --- International economics --- Finance --- Consumption --- Household consumption --- Debt burden --- Liquidity --- Income --- National accounts --- External debt --- Asset and liability management --- Economics --- Debts, External --- United States