Funding the Great War and the beginning of the end for British hegemony
Subject
Economics
Publishing details
CEPR discussion paper
Authors / Editors
Ellison M; Sargent T J; Scott A
Biographies
Publication Year
2019
Abstract
Britain was the richest country in the world at the outbreak of the Great War, benefitting from all the resources of an industrialised country and a large empire. Funding the war contributed to the beginning of the end for British hegemony. Financiers in London extracted a high price for lending their money to the government to pay for the supplies and munitions needed to win the war. The US extracted a similarly high price for lending to Britain during the war. Russia never paid its war debts to Britain; France, Italy and Belgium got off lightly; but for a long time the US insisted on Britain repaying in full.
Keywords
Economic history; Monetary economics; Fluctuations
Series Number
13848
Series
CEPR discussion paper