The Bond Market and the Legitimacy of Vichy France
Posted: 3 Sep 2003
During World War II, the spread between the 3 percent rentes and the Vichy government bonds reflected French investors' perception of the shifting fortunes of war and the willingness of future post-war government to repay the debt issued by the collaborationist regime. Structural breaks in this spread do not always match with the dates of major military events but are more closely related to the political ones, emphasizing the struggle for legitimacy by rival claimants to power.
Keywords: Legitimacy, bonds, cliometrics, sovereign debt, war
JEL Classification: F34, G1, N24
Suggested Citation: Suggested Citation