Direct Finance in the Dutch Golden Age

21 Pages Posted: 18 Oct 2016

See all articles by Oscar Gelderblom

Oscar Gelderblom

Utrecht University

Joost Jonker

Utrecht University

Clemens J.M. Kool

Utrecht University - School of Economics

Date Written: November 2016

Abstract

This article analyses private credit operations in Amsterdam in the seventeenth century to explain the absence of deposit banks. The financial system was highly segmented and a combination of declining business margins and narrow interest rate spreads cut the scope for deposit taking. Moreover, merchants had easy access to credit in the form of short‐term loans which could be easily rolled over, or replaced at will. This technique worked well because a market developed providing key functions to control risk and price loans accordingly.

Suggested Citation

Gelderblom, Oscar and Jonker, Joost and Kool, Clemens J.M., Direct Finance in the Dutch Golden Age (November 2016). The Economic History Review, Vol. 69, Issue 4, pp. 1178-1198, 2016. Available at SSRN: https://ssrn.com/abstract=2853805 or http://dx.doi.org/10.1111/ehr.12285

Oscar Gelderblom (Contact Author)

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands
+31302536459 (Phone)

Joost Jonker

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands

Clemens J.M. Kool

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
268
PlumX Metrics