Financial Revolution (original) (raw)
The Financial Revolution was a set of economic and financial reforms in Britain after the Glorious Revolution in 1688 when William III invaded England. The reforms were based in part on Dutch economic and financial innovations that were brought to England by William III. New institutions were created: a public debt (first government bonds were issued in 1693) and the Bank of England (1694). Soon thereafter, English joint-stock companies began going public. A central aspect of the financial revolution was the emergence of a stock market.
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| dbo:abstract | The Financial Revolution was a set of economic and financial reforms in Britain after the Glorious Revolution in 1688 when William III invaded England. The reforms were based in part on Dutch economic and financial innovations that were brought to England by William III. New institutions were created: a public debt (first government bonds were issued in 1693) and the Bank of England (1694). Soon thereafter, English joint-stock companies began going public. A central aspect of the financial revolution was the emergence of a stock market. The elements of the financial revolution rested basically on the financial techniques developed in the Netherlands: the bill of exchange, both foreign and inland, which as a negotiable instrument became part of the medium of exchange; transferable shares in the permanent capital stock of corporations that were traded in an active secondary market; and perpetual, government-issued annuities (known as Consols). Another piece of Financial Revolution which fundamentally altered the relations between Crown and Parliament was the creation of the Civil List in 1698. This was how Parliament granted the Crown revenues to meet the costs of running the Government and royal establishment. From this point, the Crown was reliant on Parliament's control of revenue for its day-to-day running. There is a strong connection between the Glorious Revolution, the financial revolution, and Britain’s rise to global power in the eighteenth century. With the creation of a constitutional monarchy, Parliament had to approve any further government borrowing and any new taxes (to cover the costs of borrowing). Because bondholders' interests were hence directly represented in the decision-making process, they could be confident that the risk of default was low. Having such a "credible commitment" to the public debt, Britain could borrow more cheaply (at lower rates of interest) than could absolutist states (such as France) in which bondholders' voices were not represented in government. Scholars debate whether its constitutional structure alone sufficed to make Britain a credible borrower (this argument, made in a very widely cited article by economic historian Douglass North and political scientist Barry Weingast has been challenged by David Stasavage whose analysis emphasizes the importance of party politics). (en) Aro Berriko finantza iraultza esaten zaio XVI. mendean hasi eta ondorengo bi mendeetan zehar garatzen joan ziren mundu finantzarioko berrikuntza eta asmakizun multzoari. Kontzeptu edo termino historiografiko hau ez dago oso zabalduta, naiz eta izendatzen duen prozesu historikoa eta fenomenoa guztiz onartuta egon. Prozesu honek elementu desberdinen garapenak izan zituen baina denak elkarren artean eragiten ziren eta ezaugarri bakoitzaren garapenak gainontzekoak garatzen ere laguntzen zuen, edo aukera berriak sortzen zituzten. XVI. mendean oso astiro hedatu ziren Europan zehar italiarrek merkataritzan eta finantza tekniketan egindako aurrerapenak, eta aurrekari hauetatik diruaren izaera berri bat sortuko zuten prozesuak hasi ziren. Alde batetik banku-sistemaren garapena eman zen Europa iparraldeko potentzia ekonomiko berrietan, batez ere Herbehereetan, Suedian eta Ingalaterran. Bestalde, XVII. mendean banku-erakunde berriak sortu ziren Amsterdam, Stockholmo eta Londresen, sektore publikoa eta pribatua finantzatu ahal izateko, banku zentral modernoen aitzindariak izanik. Balore-merkatuen garapena (burtsa), zor publikoa negoziatzeko sortu zena, finantza-iraultzaren garaian garatu zen eta hauekin batera sozietate anonimoen akzioak ere negoziatzen ziren. Hauez gain berrikuntza finantzarioa sozietate anonimoen agerpenak eta akzioen burtsa burbuilek osatzen dute. Azkenik, finantza-berrikuntza aseguru modernoen sorrera ere eman zen. Prozesu osoaren amaieran, diruaren eta finantzen izaera guztiz aldatuta geratu zen. (eu) |
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| rdfs:comment | The Financial Revolution was a set of economic and financial reforms in Britain after the Glorious Revolution in 1688 when William III invaded England. The reforms were based in part on Dutch economic and financial innovations that were brought to England by William III. New institutions were created: a public debt (first government bonds were issued in 1693) and the Bank of England (1694). Soon thereafter, English joint-stock companies began going public. A central aspect of the financial revolution was the emergence of a stock market. (en) Aro Berriko finantza iraultza esaten zaio XVI. mendean hasi eta ondorengo bi mendeetan zehar garatzen joan ziren mundu finantzarioko berrikuntza eta asmakizun multzoari. Kontzeptu edo termino historiografiko hau ez dago oso zabalduta, naiz eta izendatzen duen prozesu historikoa eta fenomenoa guztiz onartuta egon. (eu) |
| rdfs:label | Aro Berriko finantza iraultza (eu) Financial Revolution (en) |
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