The Stop of the Exchequer and the Secondary Market for English Sovereign Debt, 1677-1705

• 成果类型: Article
• 署名作者: National Tsing Hua University
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050718000736
• 发表日期: 2019
• 页码: 176-200
• 关键词: capital-market; institutions; england; COMMITMENT; revolution; London; BANK

摘要

Based on information related to the Stop of Exchequer, 1672, this article calculates the current yields of sovereign debt and examines the effect of the Glorious Revolution on the government's credibility. The results show that even though the interest payment had not been paid for years, when Parliament authorized the resumption of payment, the current yields fell not only below the level when the interest payment was made by Charles II, but quickly converged to the rates of return of alternative investment. The movement of current yields supports that the constitutional change of 1689 did enhance the government's credibility.