How have countries converted public debt in the past?
Monday, November 2nd, 2009T asked:
Charles P Kindelberger mentions in Manias, Panics and Crashes that large-scale conversions of public debt occurred in 1822, 1824, and 1888. He also says interest rate declines were associated with the public debt conversion. Which countries have converted public debt and what did the creditors get in return? Is it correct to assume the debtor’s currency is devalued and the government nationalizes private property to do so?
Charles P Kindelberger mentions in Manias, Panics and Crashes that large-scale conversions of public debt occurred in 1822, 1824, and 1888. He also says interest rate declines were associated with the public debt conversion. Which countries have converted public debt and what did the creditors get in return? Is it correct to assume the debtor’s currency is devalued and the government nationalizes private property to do so?