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The debt write-off behind Germany's 'economic miracle'

30 January 2015

''Germany's resurgence has only been possible through waiving extensive debt payments and stopping reparations to its World War II victims'', economic historian Albrecht Ritschl told Der Spiegel in 2011, describing Germany as ''the biggest debt transgressor'' of the past century. ''During the 20th century, Germany was responsible for what were the biggest national bankruptcies in recent history,'' Ritschl said, pointing to the collapse of the German economy in the early 1930s, which sent shockwaves through global markets. ''It is only thanks to the United States, which sacrificed vast amounts of money after both World War I and World War II, that Germany is financially stable today and holds the status of Europe's headmaster. That fact, unfortunately, often seems to be forgotten.''

This article was published online by France24 on January 30, 2015
Link to article here

Related publications
'Reparations, Deficits, and Debt Default: the Great Depression in Germany', Albrecht Ritschl, Centre for Economic Performance Discussion Paper No.1149, June 2012

Related links
Albrecht Ritschl webpage
Macro Programme webpage

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