Suchergebnisse

In the two or three decades since most countries of the Caribbean gained political independence, the public sector has played a central role - sometimes advancing their development and other times retarding or diverting it. The behavior and effects of the public sector vary widely across the 15 countries involved in the Caribbean Group for Cooperation in Economic Development, so it is useful to view them from more than one perspective. Achieving the growth and development to which the Caribbean countries aspire will require strengthening the public sector in many dimensions. To provide background for the World Bank Report on Public Sector Modernization in the Caribbean.

Inflation in Germany from 1919 to 1923 resulted from the accumulation and the anticipation of government deficits. Inflationary expectations depended therefore on fiscal news. Allied demands for reparations, the occupation of the Ruhr, and domestic revolts were important negative news and led to increased inflation. Tax reforms and eventually the end to government deficits were important positive news and ushered in periods of price stability. Political events were fiscal news as they changed the chances for the government to balance the budget.

During the five years of inflation, price stability, and hyperinflation in Germany after World War I, three factors determined the growth of the money supply. First, the Reichsbank freely issued money in exchange for whatever government or corporate debt the private sector did not wish to hold at the official discount rate. Second, the government persistently ran large deficits. Political instability and the inflation itself prevented taxation adequate to pay for social programs, subsidies to the railroad and businesses, and reparations to the Allies. The third factor was expectations of inflation, which, as they became more pessimistic, led people to hold less and monetize more of the outstanding stock of debt. Thus, the money supply was partly endogenous and partly dependent on government fiscal policy. The monetary policy of the Reichsbank, although essential to the inflation process, was a constant and passive one until stabilization at the end of 1923.

During the last two decades of the nineteenth century protection for agriculture became an important feature of the economic and political landscape in Germany. The large landlords, who specialized in arable agriculture, used their political power to get high levels of protection. Peasants, who specialized in animal husbandry, received lower but substantial and rising levels of protection. Material interest can thus help explain the peasants' political alliance with the landlords. Protection encouraged German agriculture to modernize along intensive lines, bringing to the countryside the social and political developments dreaded by the same conservative elites who promoted protection.