Citation

Discussion Paper Details

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Title: The Financial Development of London in the 17th Century Revisited: A View from the Accounts of the Corporation of London

Author(s): Nathan Sussman

Publication Date: August 2019

Keyword(s): England, Financial Development, Financial Intermediation, growth, interest rate and Usury

Programme Area(s): Economic History

Abstract: We study an overlooked episode of financial development in England during the 17th century. We construct a novel, annual series of interest rates paid by the Corporation of London. We show that: interest rates declined by 350 basis points; Interest rates co-moved with Amsterdam: we attribute half of this decline to the integration of the capital markets of London and Amsterdam and half to the increase in London's financial market liquidity. The reduction of the usury rate lowered interest rates by 50 basis points in the 1650s. England's financial evolution and path towards modern growth date, therefore, to the 17th century.

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Bibliographic Reference

Sussman, N. 2019. 'The Financial Development of London in the 17th Century Revisited: A View from the Accounts of the Corporation of London'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13920