The 1772¿73 British Credit Crisis

Softcover Nachdruck of the original 1. Auflage 2018
ISBN: 978-3-030-10001-8
Verlag: Springer International Publishing

Buch, Englisch, 334 Seiten, Paperback, Format (B × H): 148 mm x 210 mm, Gewicht: 466 g

Reihe: Palgrave Studies in the History of Finance

Nowadays remembered mostly through Adam Smith’s references to the short-lived Ayr Bank in the Wealth of Nations, the 1772-3 financial crisis was an important historical episode in its own right, taking place during a pivotal period in the development of financial capitalism and coinciding with the start of the traditional industrialisation narrative. It was also one of the earliest purely financial crises occurring in peacetime, and its progress showed an impressive geographical reach, involving England, Scotland, the Netherlands and the North American colonies.


This book uses a variety of previously unpublished archival sources to question the bubble narrative usually associated with this crisis, and to identify the mechanisms of financial contagion that allowed the failure of a small private bank in London to cause rapid and severe distress throughout the 18th century financial system. It re-examines the short and turbulent career of the Ayr Bank, and concludes that itsfailure was the result of cavalier liability management akin to that of Northern Rock in 2007, rather than the poor asset quality alleged in existing literature. It furthermore argues that the Bank of England’s prompt efforts to contain the crisis are evidence of a Lender of Last Resort in action, some thirty years before the classical formulation of the concept by Henry Thornton.

Zielgruppe

Research

Autoren/Hrsg.

Kosmetatos, Paul

Fachgebiete

• Wirtschaftswissenschaften Wirtschaftswissenschaften Wirtschaftsgeschichte
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Finanzkrisen
• Wirtschaftswissenschaften Volkswirtschaftslehre Finanzkrisen, Wirtschaftskrisen
• Geisteswissenschaften Geschichtswissenschaft Geschichtliche Themen Wirtschaftsgeschichte

Inhaltsverzeichnis

1. ‘A Year of Confusion, Dismay, and Distress’: The 1772–73 Financial Crisis and Its Potential Significance.- 2. A Minsky Bubble? Economic Growth and the Financial Sector in 1763–72.- 3.‘Roguery’, ‘Stupidity’, and Permissive Regulation: Asset Speculation and Speculative Projects in 1763–72.- 4. Propagation and Containment: Financial Contagion and the Lender of Last Resort in 1772–73.- 5. Impact and Resolution.- 6. Conclusion.

Über Autor(innen)

Paul Kosmetatos is Lecturer for International Economic History at the University of Edinburgh. Prior to embarking in his academic career in History, he studied Materials Science and Engineering and spent a decade trading financial derivatives in the City of London.