De schuldvraag : Monetaire politiek, publieke schuld en wanbetaling in Holland, ca. 1466-1489
(2012) In The Low Countries Journal of Social and Economic History / 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.
(Less)
- author
- Zuijderduijn, Jaco LU
- alternative title
- Incentives and interests : Monetary policy, public debt and default in Holland, c. 1466-1489
- publishing date
- 2012
- type
- Contribution to journal
- publication status
- published
- subject
- in
- The Low Countries Journal of Social and Economic History / 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
- Dutch
- LU publication?
- no
- id
- fc2a82a5-69a3-4ce8-b4d8-99a05bc08c66
- date added to LUP
- 2016-09-15 16:05:55
- date last changed
- 2022-06-26 18:07:51
@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 = {{dut}},
number = {{3}},
pages = {{27--46}},
publisher = {{International Institute of Social History}},
series = {{The Low Countries Journal of Social and Economic History / Tijdschrift voor Sociale en Economische Geschiedenis}},
title = {{De schuldvraag : Monetaire politiek, publieke schuld en wanbetaling in Holland, ca. 1466-1489}},
volume = {{9}},
year = {{2012}},
}