Paper #1184

Títol:

Debt sustainability in historical perspective: The role of fiscal repression

Autors:

Joachim Voth i Mauricio Drelichman

Data:

Maig 2008

Resum:

This article examines the debt history of two contenders for European hegemony: 16th-century Spain and 18th-century Britain. We analyze their fiscal behavior using measures of overborrowing and fiscal policy functions. Our results suggest that stringency was not key for Britain�s success in avoiding default. Instead, fiscal repression allowed the United Kingdom to borrow at below-market rates, thereby outspending its continental rivals.

Codis JEL:

JEL: E4, F41, N23

Àrea de Recerca:

Història Econòmica i de l'Empresa

Publicat a:

Journal of the European Economic Association, April-May 2008, 6 (2-3), pp. 657-667

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