Discussion Paper

No. 2018-33 | April 17, 2018
Could/should Jubilee debt cancellations be reintroduced today?
(Submitted as Global Solutions Paper)

Abstract

In this paper the authors recall the history of Jubilee debt cancellations, emphasizing what their social purpose was at that time. They note that it would not be possible to copy that procedure exactly nowadays, primarily because most debt/credit relationships are intermediated via financial institutions, such as banks, insurance companies, etc., rather than by governments or wealthy families directly. But the authors argue that the underlying social purpose of such Jubilees – to keep debt within the reasonable ability to be paid without social and economic polarisation – could be recreated via alternative mechanisms, and they discuss the politico-economic arguments for, and against, doing so.

JEL Classification:

E60, E61, E62, E65, H10, H23, H80, N30, N35, P43, Q15, R52

Assessment

  • Downloads: 125

Links

Cite As

Michael Hudson and Charles Goodhart (2018). Could/should Jubilee debt cancellations be reintroduced today? Economics Discussion Papers, No 2018-33, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2018-33


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