Crowding in During the Seven Years' War

Nuno Palma and Carolyn Sissoko

Economics Discussion Paper Series from Economics, The University of Manchester

Abstract: We present a financial history of the Seven Years’ War (1756–1763) using a new dataset derived from the Bank of England minutes. We argue that the war and the associated actions of the Bank of England led to a transformation of the financial system. Additionally, while there was short-term crowding out of private investment when interest rates rose due to the issue of war-related government debt, in the long-run there was crowding in: government spending led to an increase in private sector investment.

Keywords: Bank of England; City of London; discount market; interest rates; crowding in; financial history (search for similar items in EconPapers)
JEL-codes: N13 N23 N43 (search for similar items in EconPapers)
Date: 2022-12, Revised 2024-06
New Economics Papers: this item is included in nep-ban, nep-fdg and nep-his
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Forthcoming in Journal of Government and Economics.

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Related works:
Working Paper: Crowding in during the Seven Years' War (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:man:sespap:2211

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