August 31, 2009
Frehen, Rik, William Goetzmann and Geert Rouwenhorst (2009) “New Evidence on the First Financial Bubbles”, Yale international Center for Finance, Working Paper 04, 24p.
This article is available online.
Why did investors decide to bet on the various companies that would form the three 1720 bubbles in France, England and the Netherlands? (p.1). How did these bubbles affect companies which unlike the Compagnie des Indes and the South Sea Company were neither involved in the Atlantic trade nor in public finance?
Read the rest of this entry »
3 Comments | Early Modern, Economic History, Europe, reading notes | Tagged: 1700s, Amsterdam, Bank of England, bubble, crash, early finance, East India Company, England, finance, financial bubble, financial crisis, financial history, France, insurance, insurance company, IPO, joint stock company, London, London Assurance, Mississipi Bubble, Mississipi Company, Netherlands, Paris, private finance, Royal African Company, Royal Exchange Assurance, South Sea Bubble, South Sea Company, stock-market, VOC, WIC | Permalink
Posted by Ben
August 12, 2009
Quinn, Stephen (2001) “The Glorious Revolution’s Effect on English Private Finance: A Microhistory 1680-1705”, The Journal of Economic History, 61/3: 593-615.
Disclaimer: this summary is written by the contributors of the blog and not by the author of the article. Any mistake is Manuel’s fault (and he shall be punished).
According to North and Weingast’s famous thesis, the investiture of William III of England in 1688, the “Glorious Revolution”, triggered a quick modernization of the British financial system – prompting in turn a fall of the interest rates. But the arrival of the new king also led the realm into a new war against France which lasted nine years and increased public debt from £1 million to £19 million (⅓ of the national income; p.593). Read the rest of this entry »
Leave a Comment » | Early Modern, Economic History, Europe, reading notes | Tagged: 1600s, 1700s, bank, Bank of England, banker, crowding out, Douglass North, early finance, East India Company, England, finance, financial history, financial market, financial revolution, Glorious Revolution, goldsmith, Great Britain, institution, interest rates, investment, loan, London, modernization, New Institutional Economics, Nobel prize, Parliament, public finance, William III | Permalink
Posted by Ben
August 10, 2009
Carlos, Ann M., Jennifer Key and Jill L. Dupree (1998) “Learning and the Creation of Stock-Market Institutions: Evidence from the Royal African and Hudson’s Bay Companies, 1670-1700”, The Journal of Economic History, 58/2: 318-344.
Disclaimer: this summary is written by the blog and not by the authors of the article. Any mistake is Manuel’s fault.
“England’s emergence as an international trading nation in the seventeenth century can be linked to the growth of trading arrangements that allowed for a longer life of capital either […] as a joint-stock trading company” (p.318).
According to North and Weingast’s famous thesis this emergence was made possible by the reforms brought by the 1688 Glorious Revolution. However the authors underline the fact that markets don’t grow instantaneously and it takes some times for the actors to learn how to use the market (p.319). Read the rest of this entry »
Leave a Comment » | Early Modern, Economic History, Europe, reading notes | Tagged: 1600s, 1700s, bankers, brokers, corporation, early finance, East India Company, England, finance, financial history, financial intermediaries, financial market, Glorious Revolution, goldsmith bankers, Great Britain, Hudson Bay Company, know-how, learning curve, London, premodern finance, Royal African Company, secondary market, securities, shareholders, stock exchange, stock-market, United Kingdom | Permalink
Posted by Ben
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 »
2 Comments | Asia, Early Modern, Economic History, reading notes | Tagged: British Empire, colonial, colonies, colony, deindustrialization, East India Company, India, industrial revolution, industry, Mughal, proto-industry, South Asia, textile | Permalink
Posted by Ben
March 5, 2009
Munro, John H. (2006) “South German silver, European textiles, and Venetian trade with the Levant and Ottoman Empire, c. 1370 to c. 1720: a non-Mercantilist approach to the balance of payment problem”, in Relazione economiche tra Europea e mondo islamico, seccoli XII – XVII, ed. Simonetta Cavaciocchi, Florence: Le Monnier, 905-960.
This article is available on line
For mercantilists, gold and silver are not just mediums of exchange but the most tangible form of wealth (store of value) and a country’s veritable life-blood. In their view, the economic contraction of the later 14th and 15th centuries were caused by the outflow of precious metal to the East (p.905). But according to J. H. Munro, there was no such thing as a ‘bullion famine’, at worst some “periodic scarcity of coined money” in 1320-1340, 1370-1420, and 1440-1470 (p.906). Read the rest of this entry »
2 Comments | Early Modern, Economic History, Europe, Middle Ages, reading notes | Tagged: 1300s, 1400s, 1500s, 1600s, 1700s, Antwerp, bullion, East India Company, English Levant Company, fairs, Germany, industry, Mediterranean, monetary history, silver, textile, trade, Venice, VOC | Permalink
Posted by Ben