Financial Crisis, Creditor-Debtor Conflict, and Populism

• 成果类型: Article
• 署名作者: Gyongyosi, Gyozo; Verner, Emil
• 署名单位: Leibniz Association; Institut fur Weltwirtschaft an der Universitat Kiel (IFW); Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13138
• 发表日期: 2022
• 页码: 2471-2523
• 关键词: extreme-right; ECONOMIC NATIONALISM; voting-behavior; preferences; households; origins; SURGE; VOTE

摘要

We study the impact of debtor distress on support for a populist far-right political party during a financial crisis. Our empirical approach exploits variation in exposure to foreign currency household loans during a currency crisis in Hungary. Foreign currency debt exposure leads to a large, persistent increase in support for the populist far right. We document that the far right advocated for foreign currency debtors' interests by proposing aggressive debt relief and was rewarded with support from these voters. Our findings are consistent with theories emphasizing that conflict between creditors and debtors can shape political outcomes after financial crises.