Paper #1184

Título:

Debt sustainability in historical perspective: The role of fiscal repression

Autores:

Joachim Voth y Mauricio Drelichman

Data:

Mayo 2008

Resumen:

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.

Códigos JEL:

JEL: E4, F41, N23

Área de investigación:

História Económica y de la Empresa

Publicado en:

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

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