TY - JOUR
T1 - Economic stagnation in Weimar Germany: A structuralist perspective
AU - Block, T.H.
PY - 2002/1/1
Y1 - 2002/1/1
N2 - Mexico and argentina in the 1990s as well as weimar germany in the 1920s implemented similar exchange-rate-based stabilization programs which were successful in stopping inflation, but failed to generate the domestic savings and investment rates necessary for a sustainable growth path. It is argued that in both cases substantial foreign capital inflows were attracted by a stable nominal exchange rate and high interest rates, which alleviated the distributional struggle driving high inflation. However, this incentive structure caused a profit squeeze in the tradable goods sector due to an appreciating real exchange rate precipitating the ultimate collapse of the programs.
AB - Mexico and argentina in the 1990s as well as weimar germany in the 1920s implemented similar exchange-rate-based stabilization programs which were successful in stopping inflation, but failed to generate the domestic savings and investment rates necessary for a sustainable growth path. It is argued that in both cases substantial foreign capital inflows were attracted by a stable nominal exchange rate and high interest rates, which alleviated the distributional struggle driving high inflation. However, this incentive structure caused a profit squeeze in the tradable goods sector due to an appreciating real exchange rate precipitating the ultimate collapse of the programs.
U2 - 10.1016/S0954-349X(02)00003-6
DO - 10.1016/S0954-349X(02)00003-6
M3 - Article
SN - 0954-349X
VL - 13
SP - 127
EP - 150
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
ER -