Guano, Credible Commitments, and Sovereign Debt Repayment in Nineteenth-Century Peru

Dados Bibliográficos

ID10104073
AutoresCatalina Vizcarra (0000-0002-6022-7501, University of Vermont, autor correspondente)
Ano2009
Volume69
Fascículo2
Páginas358-387
Data de publicação2009-05-26
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Journal of Economic History (JOURNAL)
Identificadores do periódicoISSN: 0022-0507 • E-ISSN: 1471-6372
EditoraCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0022050709000813
OpenAlexW2124995573
IdiomaEN
Citações recebidas22
Referências citadas32

Peru's experience with sovereign debt during the guano boom is one of the most remarkable in the nineteenth century. Despite the country's ongoing political instability and poor capital market reputation, the price of Peruvian bonds soared shortly after settlement in 1849, and the country enjoyed relatively low credit risk until the 1870s. This article discusses the incentives Peru and its creditors faced, and explains how Peru's extraordinary performance in financial markets was founded on its credible commitment to service its debt with the guano proceeds

Bond · Boom · Creditor · Debt · Economics · Financial system · Geography · Guano · Incentive · Market economy · Monetary economics · Political science · Reputation · Economic Theory and Policy · Finance · Global Financial Crisis and Policies · History and Politics in Latin America · Law