The Long Shadow of Default: Britain's Unpaid War Debts to the United States, 1917-2020

The Long Shadow of Default examines the causes and consequences of Britain's default on its First World War debts to the United States, highlighting the long-lasting impact of this historical episode on political and economic relations between the two countries.

Format: Hardback
Length: 416 pages
Publication date: 06 January 2023
Publisher: Yale University Press

The Long Shadow of Default delves into a significant yet overlooked instance of sovereign default between two of the wealthiest and most influential democracies in modern history. During and immediately following the First World War, the United Kingdom incurred substantial financial obligations to the United States. In 1934, the British government took a unilateral decision to suspend the payment of these debts. This book explores the reasons behind the United Kingdom's status as one of the last major powers to default on its war debts to the United States and the profound impact these outstanding obligations had on political and economic relations between both governments.

The British governments unpaid debts cast a remarkably long shadow over policymaking on both sides of the Atlantic. Memories of British default would hinder transatlantic cooperation before and after the Second World War, shape congressional debates about the economic challenges of the 1970s, and present legal challenges for both governments until the 1990s. Over a century later, the United Kingdom's war debts to the United States remain unpaid and outstanding.

David James Gill offers one of the most comprehensive historical analyses of any sovereign default. He brings attention to an often-overlooked episode in international history, aiming to inform, refine, and occasionally challenge the broader study of sovereign default.

Dimension: 235 x 156 (mm)
ISBN-13: 9780300247183