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Piet LieftinckDutch civil servant, politician, professor and former Minister of Finance of the Netherlands
Date of Birth: 30.09.1902
Country:  Netherlands |
Content:
- Piet Lieftinck: A Statesman in the Post-War Era
- Early Life and Political Career
- Minister of Finance (1945-1952)
- Lieftinck's Response: "Financial Sanitation"
- Success of the "Financial Sanitation" Program
- Post-Ministerial Career
- Legacy and Death
Piet Lieftinck: A Statesman in the Post-War Era
Born on September 30, 1902, in Muiden, Piet Lieftinck was a Dutch economist, politician, and professor. He played a pivotal role in shaping the Netherlands' post-World War II economic policies, particularly as Minister of Finance.
Early Life and Political Career
Lieftinck began his academic career as a professor at Erasmus University Rotterdam. Politically, he initially aligned himself with the leftist wing of the Protestant Christian Democrats. In 1945, he joined the Nederlandse Volksbeweging, which failed to gain traction in the 1946 elections. Lieftinck subsequently joined the Socialist Party and, in 1971, became a member of the Democratic Socialists '70.
Minister of Finance (1945-1952)
The Economic Devastation of Post-War NetherlandsIn the aftermath of World War II, the Netherlands faced a dire economic situation. A third of the nation's wealth had been destroyed, infrastructure was severely damaged, and the financial system was in shambles.
Lieftinck's Response: "Financial Sanitation"
As Minister of Finance, Lieftinck initiated a bold monetary policy known as "financial sanitation." He withdrew 100-guilder notes and froze bank accounts in July 1945. On September 25, 1945, all banknotes were declared invalid, and all bank credits were frozen. By October 2, 1945, the old currency was obsolete.
In the following weeks, banks issued new banknotes, allowing people to access their earnings. Bank accounts were gradually unfrozen. A special tax was imposed on any increase in assets between May 1940 and December 1945, with rates ranging from 50% to 90% to discourage profiteering.
Success of the "Financial Sanitation" Program
Lieftinck's "financial sanitation" program was a resounding success. Monetary supply was halved, and inflation was kept under control. In 1948, he introduced a new coinage act, abolishing the gold standard. He also proposed new banking legislation.
Post-Ministerial Career
Lieftinck left his position as Minister of Finance in 1952. However, he remained active in international finance, serving as an executive director at the World Bank and International Monetary Fund from 1955 to 1976.
Legacy and Death
After retiring, Lieftinck continued to advise the Dutch and Suriname governments on economic and financial reforms. He died in The Hague on July 9, 1989. Piet Lieftinck's legacy as a statesman who played a crucial role in rebuilding the Netherlands' economy after World War II continues to be celebrated.
