December 20, 2010
Saito, Osamu and Tokihiko Settsu (2006) Money, credit and Smithian growth in Tokugawa Japan. Hitotsubashi University. Institute of Economic Research. Discussion Paper #139.
In Osaka, Japan’s commercial capital, under the Tokugawa, rich merchants began to add to their functions that of lender to the mighty overlords (daymo) who needed to transform the production of their domain in bullion in order to cover their expenses in Edo and the taxes due to the Shogun (p.2). At the time, the country was segmented in small local capital market and no security was traded over the whole country. Despite those limitations, the rural industries did grow over the period, yet for that they had to have access to some fundings. Where did this capital come from? (p.3)
This wholesaler system arose in replacement of an inexistent banking sector (p.4). However this organization favored greatly the Osaka merchant who managed to impose de facto their service as a necessary precondition to any industrial or agricultural endeavor (p.5). But at that time, local merchants took on Osaka’s oligopoly.
To develop the production and trade of a wealth of proto-industrial products, they started delivering themselves those products to Edo, thus by-passing the Osaka intermediaries. Local lords backed these initiatives, for instance by issuing bank notes (hansatsu) to remedy to the dramatic shortages of money (p.9). However often successful, these initiatives led to a quick segmentation of the Japanese capital market and each of these small areas suffered from high interest rates (more than 18%), while at the same time interest rates in Osaka kept following (p.10).
A system, close to the earlier one arose after the Meiji Revolution, but this time with several commercial cities as the center of the operations instead of Osaka alone (p.13).
August 24, 2009
Here’s a chart by Steve H. Hanke and Alex K. F. Kwok comparing the Zimbabwean hyperinflation with other periods of [hyper]accelerated growth of price levels in the 20th century.
The current Zimbabwean hyperinflation is second only to the Hungarian episode after WWII. Then, prices doubled each 15 hours.
Found via Alejandro Villagomez‘s blog.
August 18, 2009
Methane levels and the rise of (extensive) farming in Europe and Asia (The Economist)
Here’s a new article in The Economist showing evidence of climate change in the ice polars caps at the same time agrarian societies emerged.
The ice-core record shows that the level of carbon dioxide in the atmosphere made an anomalous upturn about 7,000 years ago, and that methane levels, which were also falling, began to increase about 5,000 years ago. These numbers correspond well with the rise of farming in Europe and Asia.
It appears that the extensive farming method used by early farmers was responsible of a more than proportional increase in methane, a greenhouse gas. Yet another point for Georgescu-Roegen and thermoeconomics.
August 2, 2009
Clingingsmith, David and Williamson, Jeffrey G. (2008) “Deindstrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent”, Exploration in Economic History, 45/3, 209-234.
Between 1700 and 1900, India went from being an industrial powerhouse to forgotten backwater. Why didn’t India manage to retain its edge and how did Britain overtake the giant? Read the rest of this entry »
August 1, 2009
Matthee, Rudi (1994) “Coffee in Safavid Iran: Commerce and Consumption”, Journal of the Economic and Social History of the Orient, 37/1, 1-32.
Despite the fact that it took place roughly at the same period, the spread of coffee consumption over the world appear to have occurred independently from the European commercial expansion (p.1). It spread during the early 16th century from Arabia through the Ottoman Empire and to Iran (p.2). The habit may have penetrated the Safavid realm via the heavily Arab-influenced southern shores. The constant wars and exchange of territories between the two empires can only have helped to spread this Turkish custom (p.5). Read the rest of this entry »
July 28, 2009
Richards, John F. (1990) “The Seventeenth-Century Crisis in South Asia”, Modern Asian Studies, 24/4, 625-638.
Evidence of the 17th-century ‘General Crisis’ have been found all over Eurasia. However in India those years represent the golden age of the Mughal dynasty (p.625). The subcontinent enjoyed a long period of relative peace after the violence of the conquest (p.626). Read the rest of this entry »
July 15, 2009
"Police officers marching in Urumqi". Photo by Gilles Sabrie for The New York Times
If you want to know more about the historical and economic origins of Uighur’s unrest in China last weeks, here is a good article on Xinjiang’s history by Edward Wong, a New York Times journalist.