Debt policy under constraints: Philip II, the Cortes, and Genoese bankers

Metadatas

Author
Discipline
type
Scope
Language
Identifiers
Source

HALSHS : archive ouverte en Sciences de l’Homme et de la Société

Relations

This document is linked to :
info:eu-repo/semantics/altIdentifier/doi/10.1111/1468-0289.12010

Collection

Archives ouvertes

Organization

Centre pour la communication scientifique directe

Keywords Ro

domestic public debt

Similar subjects En

Indebtedness

Cite this document

Christophe Chamley, « Debt policy under constraints: Philip II, the Cortes, and Genoese bankers », HALSHS : archive ouverte en Sciences de l’Homme et de la Société, ID : 10.1111/1468-0289.12010

Metrics

Share / Export

Abstract 0

Under Philip II, Castile was the first country with a large nation-wide domestic public debt. A new view of that fiscal system is presented that is potentially relevant for other fiscal systems in Europe before 1800. The credibility of the debt, mostly in perpetual redeemable annuities, was enhanced by decentralized funding through taxes administered by cities making up the Realm in the Cortes. The accumulation of short-term debt depended on refinancing through long-term debt. Financial crises in the short-term debt occurred when the service of the long-term debt reached the revenues of its servicing taxes. They were not caused by liquidity crises and were resolved after protracted negotiations in the Cortes by tax increases and interest rate reductions.

document thumbnail

From the same authors

On the same subjects

Within the same disciplines