Collectively, mankind has never had it so good despite periodic economic crises of
which the current sub-prime crisis is merely the latest example. Much of this success is
attributable to the increasing efficiency of the world's financial institutions as finance
has proved to be one of the most important causal factors in economic performance. In a
series of original essays, leading financial and economic historians examine how financial
innovations from the seventeenth century to the present have continually challenged
established institutional arrangements, forcing change and adaptation by governments,
financial intermediaries, and financial markets. Where these have been successful, wealth
creation and growth have followed. When they failed, growth slowed and sometimes economic
decline has followed. These essays illustrate the difficulties of coordinating financial
innovations in order to sustain their benefits for the wider economy, a theme that will be
of interest to policy makers as well as economic historians.
Table of Contents
List of figures
List of tables
1 Financial innovations and crises: The view backwards from Northern Rock Jeremy Atack
Atack, Jeremy 1
2 An economic explanation of the early Bank of Amsterdam, debasement, bills of exchange
and the emergence of the first central bank Stephen Quinn Quinn, Stephen William Roberds
Roberds, William 32
3 With a view to hold: The emergence of institutional investors on the Amsterdam
securities market during the seventeenth and eighteenth centuries Oscar Gelderblom
Gelderblom, Oscar Joost Jonker Jonker, Joost 71
4 Was John Law's System a bubble? The Mississippi Bubble revisited Francois R. Velde
Velde, Francois R. 99
5 Sir George Caswall vs. the Duke of Portland: Financial contracts and litigation in
the wake of the South Sea Bubble Gary S. Shea Shea, Gary S. 121
6 The bell jar: Commercial interest rates between two revolutions, 1688-1789 Marc
Flandreau Flandreau, Marc Christophe Galimard Galimard, Christophe Clemens Jobst Jobst,
Clemens Pilar Nogues-Marco Nogues-Marco, Pilar 161
7 Comparing the UK and US financial systems, 1790-1830 Richard Sylla Sylla, Richard 209
8 Natural experiments in financial reform in the nineteenth century: The Davis and
Gallman analysis Larry Neal Neal, Larry 241
9 Regulatory changes and the development of the US banking market, 1870 1914: A study
of profit rates and risk in national banks Richard J. Sullivan Sullivan, Richard J. 262
10 Anticipating the stock market crash of 1929: The view from the floor of the stock
exchange Eugene N. White White, Eugene N. 294
11 The development of "non-traditional" open market operations: Lessons from
FDR's silver purchase programRichard C. K. Burdekin Burdekin, Richard C. K. Marc D.
Weidenmier Weidenmier, Marc D. 319
12 The interwar shocks to US-Cuban trade relations: A view through sugar company stock
price data Alan Dye Dye, Alan Richard Sicotte Sicotte, Richard 345
13 Central bank reaction functions during the inter-war gold standard: A view from the
periphery Kirsten Wandschneider Wandschneider, Kirsten 388
14 When do stock market booms occur? The macroeconomic and policy environments of
twentieth century booms Michael D. Bordo Bordo, Michael D. David C. Wheelock Wheelock,
David C. 416
15 Lessons from history for the twenty-first century Larry Neal Neal, Larry 450
Index 465
494 pages,Hardcover