In 1934, Britain owed the US $4.4bn of World War I debt (about £866m at 1934 exchange rates). Adjusted by the Retail Price Index, a typical measure of inflation, £866m would equate to £40bn now, and if adjusted by the growth of GDP, to about £225bn. They have repaid the re-construction loans from WWII but haven't paid a penny on the older debt. Why is that?
2007-01-04
08:53:02
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2 answers
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asked by
smilindave1
4
in
Social Science
➔ Economics
We did not forgive all war debts owed from WWI. The U.K. owes us $4.4bn in 1934 dollars and they have not paid one penny of it.
2007-01-04
14:51:04 ·
update #1