Theree seems to be a popular notion that somehow the Germans are very prudent when it comes to borrowing but is that really he case ?
From todays Guardian online
Albrecht Ritschl, an economics professor at the London School of Economics, argues the Germans have no claim on the higher moral ground.
He points out that Germany ran up the largest debts of any nation during the 20th century in pursuit of its ambitions and was forgiven almost all of them.
Two post-war deals, one in 1948 and another in 1953 wrote off most of Germany's debts from the two world wars and 1930s depression and delayed the remainder for almost 40 years.
In 1990, when war loans were on the agenda again, the newly reconstituted German nation said it had no relationship with Imperial Germany of the 1920s, 1930s, and 1940s and therefore owed nothing. An agreement with the US and UK allowed Germany to wriggle free with a near 100% haircut on the last debts.
Last year year it paid the last tiny amounts of leftover war loan
According to Ritschl, Germany in 1953 was "like Argentina on steroids".
There is a history in Germany of high debts and not knowing what to do about them, which means it cannot lecture other countries without denying its past.
From todays Guardian online
Albrecht Ritschl, an economics professor at the London School of Economics, argues the Germans have no claim on the higher moral ground.
He points out that Germany ran up the largest debts of any nation during the 20th century in pursuit of its ambitions and was forgiven almost all of them.
Two post-war deals, one in 1948 and another in 1953 wrote off most of Germany's debts from the two world wars and 1930s depression and delayed the remainder for almost 40 years.
In 1990, when war loans were on the agenda again, the newly reconstituted German nation said it had no relationship with Imperial Germany of the 1920s, 1930s, and 1940s and therefore owed nothing. An agreement with the US and UK allowed Germany to wriggle free with a near 100% haircut on the last debts.
Last year year it paid the last tiny amounts of leftover war loan
According to Ritschl, Germany in 1953 was "like Argentina on steroids".
There is a history in Germany of high debts and not knowing what to do about them, which means it cannot lecture other countries without denying its past.
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