Q&A · 2:57:31-2:58:02

An economic crash during naval-treaty negotiations

A crash during negotiations is expected to provoke abrupt responses, while a later crash leaves governments bound by agreements already made.

Question

What if the crash happens during the naval-treaty negotiations?

Short answer

The expectation is a worse negotiating outcome because governments would react abruptly to the crisis.

Notes

A crash during negotiations could produce knee-jerk responses while governments are still deciding what to accept. If it comes after an agreement, they are already bound by particular commitments. The timing of the financial shock therefore changes the circumstances in which the treaty is negotiated.