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

Nathan Sussman

No 13920, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A novel, annual series of interest rates paid by the Corporation of London extracted from archival sources shows that interest rates in London declined by 350 basis points over the 17th century. Most of the decline followed a similar pattern in Amsterdam. Records extracted from the Corporation's archive provide evidence for financial deepening: an increase in the number and volume of debt instruments, an increase in the number of people holding them, and development of a secondary market. Econometric analysis establishes that financial deepening contributed to the convergence of interest rates between London and Amsterdam. England's financial evolution and path towards modern growth date, therefore, to the 17th century.

Keywords: Interest rate; Financial development; Financial intermediation; Growth; England (search for similar items in EconPapers)
JEL-codes: G23 N2 N23 O16 O43 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-fdg and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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