Financial repression and high public debt in Europe

Ad van Riet

Research output: ThesisDoctoral Thesis

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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

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    van Riet, A. (2018). Financial repression and high public debt in Europe. CentER, Center for Economic Research.