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

35 Pages Posted: 20 Aug 2019

See all articles by Nathan Sussman

Nathan Sussman

Hebrew University of Jerusalem - Department of Economics

Date Written: August 2019

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.

Keywords: England, Financial Development, Financial Intermediation, growth, interest rate, Usury

JEL Classification: G23, N2, N23, O16, O43

Suggested Citation

Sussman, Nathan, The Financial Development of London in the 17th Century Revisited: A View from the Accounts of the Corporation of London (August 2019). CEPR Discussion Paper No. DP13920. Available at SSRN: https://ssrn.com/abstract=3439474

Nathan Sussman (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem, 91905
Israel
+972 02-5883139 (Phone)
+972 02-5816071 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
45
PlumX Metrics