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De schuldvraag : Monetaire politiek, publieke schuld en wanbetaling in Holland, ca. 1466-1489

Zuijderduijn, Jaco LU (2012) In Tijdschrift voor Sociale en Economische Geschiedenis 9(3). p.27-46
Abstract

In the second half of the fifteenth century the largest towns in the county of Holland created substantial public debts. This article puts forward the hypothesis that towns speculated on sovereign monetary policy in the process. They exposed themselves and their creditors to fluctuations in the exchange rates between silver and gold coins, which initially caused the reduction of their real 'interest payments' due to ongoing debasement of silver coins, and thus allowed the towns some breathing space. However, when the sovereign decided to revalue silver coins, in 1489, the towns all of a sudden faced much higher expenses, and defaulted. The article explains the mechanism at play, and discusses evidence for speculation by the towns on... (More)

In the second half of the fifteenth century the largest towns in the county of Holland created substantial public debts. This article puts forward the hypothesis that towns speculated on sovereign monetary policy in the process. They exposed themselves and their creditors to fluctuations in the exchange rates between silver and gold coins, which initially caused the reduction of their real 'interest payments' due to ongoing debasement of silver coins, and thus allowed the towns some breathing space. However, when the sovereign decided to revalue silver coins, in 1489, the towns all of a sudden faced much higher expenses, and defaulted. The article explains the mechanism at play, and discusses evidence for speculation by the towns on sovereign monetary policy.

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author
alternative title
Incentives and interests : Monetary policy, public debt and default in Holland, c. 1466-1489
publishing date
type
Contribution to journal
publication status
published
subject
in
Tijdschrift voor Sociale en Economische Geschiedenis
volume
9
issue
3
pages
20 pages
publisher
International Institute of Social History
external identifiers
  • scopus:84872581370
ISSN
1572-1701
language
Other
LU publication?
no
id
fc2a82a5-69a3-4ce8-b4d8-99a05bc08c66
date added to LUP
2016-09-15 16:05:55
date last changed
2017-01-01 08:33:55
@article{fc2a82a5-69a3-4ce8-b4d8-99a05bc08c66,
  abstract     = {<p>In the second half of the fifteenth century the largest towns in the county of Holland created substantial public debts. This article puts forward the hypothesis that towns speculated on sovereign monetary policy in the process. They exposed themselves and their creditors to fluctuations in the exchange rates between silver and gold coins, which initially caused the reduction of their real 'interest payments' due to ongoing debasement of silver coins, and thus allowed the towns some breathing space. However, when the sovereign decided to revalue silver coins, in 1489, the towns all of a sudden faced much higher expenses, and defaulted. The article explains the mechanism at play, and discusses evidence for speculation by the towns on sovereign monetary policy.</p>},
  author       = {Zuijderduijn, Jaco},
  issn         = {1572-1701},
  language     = {mis},
  number       = {3},
  pages        = {27--46},
  publisher    = {International Institute of Social History},
  series       = {Tijdschrift voor Sociale en Economische Geschiedenis},
  title        = {De schuldvraag : Monetaire politiek, publieke schuld en wanbetaling in Holland, ca. 1466-1489},
  volume       = {9},
  year         = {2012},
}