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Debt diplomacy redefined: US leadership and international debt restructurings in the resolution of the interwar debt crisis; [Redefinició de la diplomacia del deute: el lideratge dels Estats Units i les reestructuracions internacionals del deute en la resolució de la crisi del deute del període d'entreguerres]; [Redefinición de la diplomacia de la deuda: el liderazgo estadounidense y las reestructuraciones internacionales de la deuda en la resolución de la crisis de la deuda del periodo de entreguerras]

Revista de Historia Industrial | 2026

Paper Details

Authors: de La Villa L.

DOI: 10.1344/rhi-ihr.48094

Journal: Revista de Historia Industrial

Year: 2026

Publisher: Department of Economic History and Institutions, Policy and World Economy

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 1

Abstract

This article traces how the United States reshaped sovereign-debt diplomacy during the interwar period and its aftermath. Using archival sources from the Foreign Bondholders Protective Council and governmental collections, it reconstructs Washington's responses to the interwar debt crisis from the outbreak of the Great Depression until the final settlement of interwar debts in the 1950s. The study shows a decisive transition from the early 1930s hands-off policy to an increasingly interventionist approach in which the US government mediated restructurings, supplied official credit, and embedded debt relief within trade and security agreements. The analysis of key shifts in US policies and practices – including debates on banking investigations and the Johnson Act in the early 1930s, the interventionist stance linked to New Deal diplomacy, and landmark post-WWII debt settlements – reveal how the US government evolved into a proactive architect of concessionary debt bargains. By highlighting US leadership in international debt resolution, these findings show how debt diplomacy became an important tool of global financial governance and post-WWII reconstruction efforts and departed from the 19th century experience of gunboat diplomacy. © Revista de Historia Industrial – Industrial History Review, 2026.

Keywords

debt diplomacy; international finance; interwar period; sovereign debt