September 30, 2025

A Conspiracy? The Role of British and American Bankers in the Belgian Monetary Crisis, 1925–1926

Key Points

The involvement of foreign bankers led to a crucial shift in Belgium's monetary policy, influencing government stability.
Negotiations by a consortium of banks helped Belgian authorities transition to strict fiscal policies, but contributed to political upheaval.
The stabilization of the Belgian currency was tied to broader conservative movements across Europe in the late 1920s, underscoring regional patterns.
As a result of these financial negotiations, conspiracy theories emerged, reflecting public distrust in the banking system and government.

Abstract

This article focuses on the negotiations between a consortium of British and American banks led by the Bank of England to help Belgian authorities stabilise their currency and return to the gold standard. It aims to understand how the involvement of these foreign bankers was essential for the Belgian government and central bank to justify a shift towards strict orthodox monetary and fiscal policies, but led to the spectacular failure of the Belgian left-wing government, the birth of several conspiracy theories, and the rise of the conservative right in the second half of the 1920s, as it happened in many other European countries.

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A Conspiracy? The Role of British and American Bankers in the Belgian Monetary Crisis, 1925–1926

Key Points

Abstract

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