Template-type: ReDif-Paper 1.0
Author-Name: Block, Thorsten
Author-workplace-name: MERIT 
Title: Economic stagnation in Weimar Germany: A structuralist perspective
Abstract: Mexico and Argentina in the 1990s as well as Weimar Germany in the 1920s implemented similar exchange-rate-based stabilization programs which were successful in stopping inflation, but failed to generate the domestic savings and investment rates necessary for a sustainable growth path. It is argued that in both cases substantial foreign capital inflows were attracted by a stable nominal exchange rate and high interest rates, which alleviated the distributional struggle driving high inflation. However, this incentive structure caused a profit squeeze in the tradable goods sector due to an appreciating real exchange rate precipitating the ultimate collapse of the programs.
Keywords: economics of technology ; 
Series: Research Memoranda
Creation-Date: 2001
Number: 025
File-URL: https://unu-merit.nl/publications/rmpdf/2001/rm2001-025.pdf
File-Format: application/pdf
File-Size: 237742
Handle: RePEc:unm:umamer:2001025