Opper S. (1993): the incredible story of the fleeing Dutchmen

December 13, 2010

Oppers, Stefan E. (1993) The Interest Rate Effect of Dutch Money in Eighteen-Century Britain. The Journal of Economic History, 53/1: 25-43.

Dutch citizens invested heavily in Britain over the 18th century. Even though the English themselves regarded this phenomenon as a necessary evil, it greatly help the Crown to levy the necessary capital for its expenses over the century (p.28). In the 1740s Dutch financiers in London had become critical for the funding of the government’s deficit. To a large extent it can even be said that the Seven Years War was won thanks to foreign money.

Read the rest of this entry »


More on US public debt

May 25, 2010

Here’s an impressive infographic by the Chicago Tribune, on the national debt of the United States, 1940-2010.

Found via Visualizing Economics.


The socialist within

May 22, 2010

It’s Friday night in this side of the Western hemisphere, so, what the heck. I think you might find it funny. Here’s a bit of U. S. public debt history.

Does the average tea-party fan know better?

Found via The Big Picture.


Béguin K. (2005) Finance in times of uncertainty

January 16, 2010

Béguin, Katia (2005) La circulation des rentes constituées dans la France du XVIIe siècle. Une approche de l’incertitude économique. Annales. Histoire, Sciences Sociales, 60/5 : 1229-1244.

Vodpod videos no longer available. Molière “L’Avare” Read the rest of this entry »


Bochove C. van (2008) Outsourcing financial modernisation

October 11, 2009

Bochove, Christiaan van (2008) “Integration of Denmark-Norway in the Dutch capital market”, chapter 4 in The Economic Consequences of the Dutch. Economic integration around the North Sea, 1500-1800, Amsterdam: Aksant, 90-125.

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The early modern markets for goods and labour were highly integrated. As the country’s Golden Age came to an end, by 1700, Dutch capital was increasingly finding investment opportunities abroad, chiefly in Great Britain but also in the Danish Kingdom (p.90). It had not always been the case. For instance around 1600, trade with Norway was conducted with cash rather than bills of exchange, a sure sign of poor integration. The concentration of trade in the hands of a local business elite (rather than scattered between small producers) made this modernization possible. By the mid century Norwegian merchants started drawing credit from Amsterdam (p.93). Read the rest of this entry »


Murphy A. (2006) The Financial Revolution: a supply-side story (for real)

October 9, 2009

Murphy, Anne L. (2006) “Dealing with Uncertainty: Managing Personal Investment in the Early English National Debt”, History, 91/302, 200-17.

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The sums involved in the so-called English Financial Revolution following the arrival on the throne of William III were altogether not that important: £6.9m from 1688 to 1702 while the government budget over the period reached £72m. However, “the impact of those novel methods of fund-raising was considerable”. In particular because small wealth-owners represented a large share of these early investors (p.201). Samuel Jeake, a merchant from Rye (East Sussex) was one of those small investors. He recorded his thought and his transactions in a diary and a few letters (p.202). Read the rest of this entry »


Alonso García D. (2008) For the monarchy: entrepreneurs on call

October 6, 2009

Alonso García, David (2008) “Finances royales et monde financier dans la creation de la monarchie espagnole (xvie siècle)” in Les finances royales dans la monarchie espagnole (xvie-xixe siècles), ed Anne Dubet. Rennes: Presses Unioversitaires de Rennes, 175-186.

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Early modern governments’ reliance on private finance has usually been interpreted as a sign of weakness. This is an anachronism; the use of private finance is the result of a strategy from the sovereigns (p.175). In Spain, the crown sees the involvement of the merchants in the tax-collection process as a way to enrich the kingdom (p.176). Read the rest of this entry »


Dagnino G. B. (1995) When being the first is not enough

September 28, 2009

Dagnino, Giovanni Battista (1995) “The Tavola di Palermo: The First Public Bank of Second European XVI century” in Proceedings of the Conference on Business History, October 24 and 25 1994, Rotterdam, eds Mila Davids, Ferry de Goey & Dirk de Witt, 91-111.

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The evolution of Sicilian banks reflects the history of the island during the early modern period, in that they were “economically and financially backward” (p.91). The 16th century in the Western Mediterranean was a time of Spanish Domination dominated by (1) money clipping, (2) high inflation, (3) commercial mismanagement, (4) Gresham Law episodes fuelled by unscrupulous financiers and (5) heavy and altogether negative government interventions (p.93). Read the rest of this entry »


Sessions of the Second Latin American Economic History Congress

September 21, 2009

Wordle: CLADHE-II: List of sessions

Here is the list of preapproved sessions  of the Second Latin American Economic History Congress (CLADHE-II), to be held in Mexico City on February 3-5, 2010. To submit a paper to any of the sessions, you have to go here.

Wordle: CLADHE-II: Lista de simposios


Webshopping

September 21, 2009

Today, Chris [I couldn’t find his last name] at History of Economics Playground posted a note on a recent seminar in Duke University about Krugman’s article on the state of economics (mentioned here).

Speaking of Krugman, he wrote a small post on the history of contemporary macroeconomics. It’s worth reading if you already read the aforementioned article.

And here’s a Short History of Small Times in Wall Street by David Silver, former president of the Investment Company Institute (1977-1991), on the legality of the profits of reducing the time invested in buying and selling stocks.


Gelderblom O. & Jonker J. (2008) What really brought interests down

September 21, 2009

Gelderblom, Oscar & Joost Jonker (2009) “The Conditional Miracle. Institutional change, fiscal policy, bond markets and interest rates in Holland 1514-1713”, Utrecht University Working Papers.

Jan de Baen, Portret van Johan de WittOscar en JoostKaartLeiden

This paper is available online (pdf).

Traditional explanation of the low issuing rate on public debt in the Dutch Republic emphasize the dramatic fall that occurred around 1600, but fail to explain why this level kept on falling from 1640 to 1725, until it had reached 2.5% (p.2). Read the rest of this entry »


Stabel P. and Haemers J. (2006) Financial revolution: the supply side story (… almost)

September 12, 2009

Stabel, Peter and Jelle Haemers (2006) “From Bruges to Antwerp. International commercial firms and government’s credit in the late 15th and early 16th century”, in Banca, Crédito y Captial. La Monarquía Hispánica y los antiguos Países Bajos (1505-1700), eds. Carmen Sanz Ayán and Bernardo J. García García, Madrid: Fundación Carlos de Amberes, p.20-38.

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Introduction

The Financial Revolution – i. e. the gradual increase of government spending made possible by an increasing reliance on loans obtained from the capital markets – has essentially been studied from the side of the public demand. The ability of the markets to match this demand being regarded almost as a given. Meanwhile the impact the governments’ enormous financial needs may have had on private finance have hardly been addressed (p.22). Read the rest of this entry »