Paper #860

Títol:

Private borrowing during the financial revolution: Hoare’s Bank and its customers, 1702-1724

Autors:

Peter Temin i Joachim Voth

Data:

Maig 2005

Resum:

The financial revolution improved the British government’s ability to borrow, and thus its ability to wage war. North andWeingast argued that it also permitted private parties to borrow more cheaply and widely.We test these inferences with evidence from a London bank.We confirm that private bank credit was cheap in the early eighteenth century, but we argue that it was not available widely. Importantly, the government reduced the usury rate in 1714, sharply reducing the circle of private clients that could be served profitably.

Paraules clau:

Financial Revolution, growth, finance, rationing, usury laws, institutional evelopment, eighteenth-century England

Codis JEL:

E44, N23, N13, G21, G18, G28

Àrea de Recerca:

Història Econòmica i de l'Empresa

Publicat a:

Economic History Review, August 2008, 61 (3), pp. 541-564.

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