Deconstructing the Mechanics and Market Implications of Financial Repression 

 

White Paper 

3/22/2013 

Governments around the world are using financial repression to reduce their debt burdens—but their success comes at the expense of savers and investors. Download our white paper to learn how financial repression works and how to combat it.
Deconstructing the Mechanics and Market Implications of Financial Repression

  Executive Summary
The concept of “financial repression” was developed in 1973 by renowned Stanford University economists Ronald McKinnon and Edward Shaw. It describes a collection of economic policies, regulations and capital controls imposed by governments and central banks to facilitate public-sector deleveraging. Today, with countries across the developed world entangled in debt, financial repression offers a roadmap to fiscal stability and a strong incentive for market intervention. But there are costs. Government intervention can produce market distortions—including today’s artificially low interest rates. In an environment of even moderate inflation, these low rates can result in negative real investment returns. That is why we believe it is critical for investors to understand how financial repression works, why governments choose to use it and what tools are best-suited to protect assets and purchasing power.






Allianz Global Investors Distributors LLC, 1633 Broadway, New York NY, 10019-7585, us.allianzgi.com, 1-800-926-4456.

Search

> Advanced Search

Find a Product

Or Select

Contact Us

For all inquiries please contact us

Follow Us

       
Research 
AGI-2013-03-22-6134 

Share

Facebook
LinkedIn
Twitter

You are currently leaving us.allianzgi.com and navigating to a third-party website. Allianz Global Investors Distributors LLC accepts no responsibility for content on third-party sites or for the services provided. When using the services provided by a third-party site, you are subject to that site’s terms of service and privacy rules, which you should review carefully.