Economic History Case Studies: Weimar Germany (1923)

The Fourth Estate

“[E]ntering into debt distress is often a painful process, which may threaten macro-economic stability and set back a country’s development for years. Supporting member countries in managing debt risks and resolving debt distress is therefore at the heart of the IMF’s work. This work takes multiple forms.”

“Countries with high debt vulnerabilities need to tackle them through a combination of adjustment and measures to restore growth. An IMF-supported program can facilitate that adjustment, but the IMF can only lend to a member if its debt is sustainable. There are cases where debt is unsustainable, even taking the adjustment efforts into account. If a member country enters into debt distress, only the country’s government can decide whether to solve this by negotiating a debt restructuring with its creditors.”

-Summarized International Monetary Fund (IMF) Description of Sovereign Debt Restructuring

There is an American idiom in the English language which reads:

“Politics makes…

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