Refinancing short-term debt with a fixed monthly interest rate into funded juros under Philip II

An asiento with the Maluenda brothers

Bibliographic Data

ID3603023
AuthorsCarlos Álvarez‐nogal (Universidad Carlos III de Madrid), Carlos Álvarez Nogal (0000-0002-0175-597X, Universidad Carlos III de Madrid, corresponding author), Christophe Chamley (Paris School of Economics and Boston University, corresponding author)
Year2018
Volume71
Issue4
Pages1100-1117
Publication date2018-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic History Review (JOURNAL)
Journal identifiersISSN: 0013-0117 • E-ISSN: 1468-0289
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ehr.12619
OpenAlexW2802854814
LanguageEN
Citations received2
References cited17

In the fragmented geographical, fiscal, and financial state inherited by Philip II of Spain, while the public debt reached an unprecedented level (50-60 per cent of GDP), the critical refinancing of unfunded asientos into funded juros was operated by merchant-bankers who signed the asientos. This process is illustrated, using abundant archival documentation, by an asiento with the Maluenda brothers in 1595, which provided the Crown with steady monthly cash payments for a year with options to sell juros for two-thirds of the credit, and a monthly rate of 1 per cent on the interim balance. Other examples are provided

Cash · Debt · Economics · Financial system · Geography · Interest rate · Interim · Monetary economics · Payment · Finance · Historical Economic and Legal Thought · Historical Economic and Social Studies · Historical Studies on Spain

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