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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