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Configuring Financial Markets in Preindustrial Europe

Published online by Cambridge University Press:  13 March 2013

Christiaan van Bochove
Christiaan van Bochove*
Affiliation:
Postdoctoral Researcher, Department of History, Utrecht University, Drift 10, Utrecht 3512 BS, The Netherlands. E-mail: [email protected].
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Abstract

Secondary markets for public debt in Europe's most advanced preindustrial markets, Britain and the Dutch Republic, differed markedly. They were liquid in Britain, but not in the Republic. This article demonstrates that economic geography determined the shape of primary markets and the secondary markets that were based on them. Configuring financial markets in preindustrial Europe was thus not a uniform process leading to one ideal-type market structure. The development of markets with advanced financial institutions did not naturally produce liquid markets. While financial markets in preindustrial Europe were rooted in local circumstances, they functioned well while adapting to them.

Type
Articles
Information
The Journal of Economic History , Volume 73 , Issue 1 , March 2013 , pp. 247 - 278
Copyright
Copyright © The Economic History Association 2013

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