"We can't pay": How Italy cancelled war debts after Lausanne

Marianna Astore () and Michele Fratianni
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Marianna Astore: Università Politecnica delle Marche, Dipartimento di Scienze economiche e sociali

No 129, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences

Abstract: The paper deals with Italian inter-war debts, against the background of the very contentious international issue of war reparations that many Allied nations wanted to link to war debt repayments. While the bulk of the literature looks at the Lausanne conference of 1932 as an act of forgiveness of war debts, we show that Italy, having first achieved an extremely large haircut by restructuring US and UK debts in 1925-26, defaulted after Lausanne. We also present a new times series on Italian foreign debt from 1925 to 1934, a series that is consistent with the unfolding of relevant historical events.

Keywords: Italy; foreign debt; debt restructuring; default (search for similar items in EconPapers)
JEL-codes: H63 N44 N94 (search for similar items in EconPapers)
Pages: 31
Date: 2016-11
New Economics Papers: this item is included in nep-his
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http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir129.pdf First version, 2016 (application/pdf)

Related works:
Working Paper: ‘We can’t pay’: How Italy cancelled war debts after Lausanne (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wmofir:129

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