War reparations have been large and small, repaid and defaulted on, but
the consequences have almost always been significant. Ever since Keynes
made his case against German reparations in The Economic Consequences of
the Peace, the effects of transfer payments have been hotly debated.
When Nations Can't Default tells the history of war reparations and
their consequences by combining history, political economy, and open
economy macroeconomics. It visits often forgotten episodes and tells the
story of how reparations were mostly repaid - and when they were not.
Analysing fifteen episodes of war reparations, this book argues that
reparations are unlike other sovereign debt because repayment is
enforced by military and political force, making it a senior liability
of the state.