Financial repression and high public debt in Europe

Ad van Riet

Research output: ThesisDoctoral ThesisScientific

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Abstract

The sharp rise in public debt-to-GDP ratios in the aftermath of the global financial crisis of 2008 posed serious challenges for fiscal policy in euro area countries. This thesis examines whether and to what extent modern financial repression has been applied in Europe to address these challenges. Financial repression is defined as the government’s strategy – supported by monetary and financial policies – to gain privileged access to capital markets at preferential credit conditions and divert resources to the state with the aim to secure and, if necessary, enforce public debt sustainability.
This study shows that national public debt management, EU financial regulation, EMU crisis management as well as ECB monetary policy have significantly supported euro area governments in dealing with their fiscal predicament. Taken on their own, these public policies were targeted at supporting fiscal, financial and monetary stability in the wake of the euro area crisis. This study argues that the respective authorities have in fact applied the tools of financial repression and thereby contributed to relieving sovereign liquidity and solvency stress.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Eijffinger, Sylvester, Promotor
  • Hoogduin, L.H., Promotor, External person
Award date5 Feb 2018
Place of PublicationTilburg
Publisher
Print ISBNs978 90 5668 552 2
Publication statusPublished - 2018

Fingerprint

Financial repression
Public debt
Euro area
Fiscal
Government
Monetary policy
Financial regulation
Resources
Authority
Capital markets
Public debt management
Monetary stability
Debt sustainability
Financial policy
Public policy
Financial stability
Liquidity
Global financial crisis
Solvency
Crisis management

Cite this

van Riet, A. (2018). Financial repression and high public debt in Europe. Tilburg: CentER, Center for Economic Research.
van Riet, Ad. / Financial repression and high public debt in Europe. Tilburg : CentER, Center for Economic Research, 2018. 299 p.
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van Riet, A 2018, 'Financial repression and high public debt in Europe', Doctor of Philosophy, Tilburg University, Tilburg.

Financial repression and high public debt in Europe. / van Riet, Ad.

Tilburg : CentER, Center for Economic Research, 2018. 299 p.

Research output: ThesisDoctoral ThesisScientific

TY - THES

T1 - Financial repression and high public debt in Europe

AU - van Riet, Ad

PY - 2018

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N2 - The sharp rise in public debt-to-GDP ratios in the aftermath of the global financial crisis of 2008 posed serious challenges for fiscal policy in euro area countries. This thesis examines whether and to what extent modern financial repression has been applied in Europe to address these challenges. Financial repression is defined as the government’s strategy – supported by monetary and financial policies – to gain privileged access to capital markets at preferential credit conditions and divert resources to the state with the aim to secure and, if necessary, enforce public debt sustainability. This study shows that national public debt management, EU financial regulation, EMU crisis management as well as ECB monetary policy have significantly supported euro area governments in dealing with their fiscal predicament. Taken on their own, these public policies were targeted at supporting fiscal, financial and monetary stability in the wake of the euro area crisis. This study argues that the respective authorities have in fact applied the tools of financial repression and thereby contributed to relieving sovereign liquidity and solvency stress.

AB - The sharp rise in public debt-to-GDP ratios in the aftermath of the global financial crisis of 2008 posed serious challenges for fiscal policy in euro area countries. This thesis examines whether and to what extent modern financial repression has been applied in Europe to address these challenges. Financial repression is defined as the government’s strategy – supported by monetary and financial policies – to gain privileged access to capital markets at preferential credit conditions and divert resources to the state with the aim to secure and, if necessary, enforce public debt sustainability. This study shows that national public debt management, EU financial regulation, EMU crisis management as well as ECB monetary policy have significantly supported euro area governments in dealing with their fiscal predicament. Taken on their own, these public policies were targeted at supporting fiscal, financial and monetary stability in the wake of the euro area crisis. This study argues that the respective authorities have in fact applied the tools of financial repression and thereby contributed to relieving sovereign liquidity and solvency stress.

M3 - Doctoral Thesis

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T3 - CentER Dissertation Series

PB - CentER, Center for Economic Research

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ER -

van Riet A. Financial repression and high public debt in Europe. Tilburg: CentER, Center for Economic Research, 2018. 299 p. (CentER Dissertation Series).