War and Foreign Debt Settlement in Early Republican Spanish America

Sicotte, Richard; Vizcarra, Catalina

doi:10.1017/s0212610900000768

Cited by 9 publications

(5 citation statements)

References 23 publications

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“…For comparative purposes, the figure was 273 US$ for the US. 10 9 See (Bates, Coatsworth, and Williamson 2007;Sicotte and Vizcarra 2009). 10 These strong variations can be also observed for the deposits to note issue ratio, even if the highest figure is the one for Chile (4.31) followed by Argentina (2.37) and Brazil (1.50).…”

Section: Latin America In the Early 1920smentioning

confidence: 90%

Latin American Experiments in Central Banking at the Onset of the Great Depression

Zendejas,

Nodari

2023

The Spread of the Modern Central Bank and Global Cooperation

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This chapter analyzes the role of central banks during the first years of the Great Depression. The literature has focused on central banks' loss of autonomy and on the implementation of innovative, countercyclical monetary policies which fostered economic recovery but also led to higher rates of inflation and exchange rate volatility. However, we show that these kinds of policies had been foreseen by foreign advisors before and during the crisis. Policymakers had been reluctant to implement them due to the fear of a loss of credibility for the gold standard regime. Furthermore, we show that in most cases this shift was short-lived and central banks could avert, to a large extent, the problem of fiscal dominance. Central banks became effective actors, channeling credit to the real economy and also supporting the emergence of state institutions that would promote the development of local industry.

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Section: Latin America In the Early 1920smentioning

confidence: 90%

Latin American Experiments in Central Banking at the Onset of the Great Depression

Zendejas,

Nodari

2023

The Spread of the Modern Central Bank and Global Cooperation

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“…The Mexican-American War had a tremendous impact on the institutional development of Mexico. Besides thousands of military and civilian deaths, the war caused a severe disruption of internal and external trade with a substantial economic ruin (Sicotte and Vizcarra 2009). The war also provided a long-lasting institutional shock to the Mexican political economy (Tenenbaum 1986).…”

Section: Treatment Variablementioning

confidence: 99%

Long-Term Effects of Radical Institutional Overhauls: Evidence from the Mexican-American War

Dothan

Kovač

Spruk

2022

Preprint

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This paper examines the impact of radical institutional reforms on long-term development of property rights and on institutions regulating contracting. The paper demonstrates that the Mexican-American War (1846-1848) had a significant effect on the institutional development of Mexico. The war partially removed the legal and economic barriers that protected the old oligarchic elites in Mexico and paved the way for the modernization of legal and commercial codes. The analysis exploits the within-country variation in the presence of US troops during the Mexican-American war across Mexican states and cities. Using propensity score and nearest neighbour matching techniques with orthogonal covariates, the paper presents evidence of the long-term institutional implications of the presence of troops. Troops-controlled areas have less complex business registration procedures, better quality of land administration, broader access to property rights, markedly better quality of the judicial process, and lower costs of enforcing contracts than the areas without troops’ presence. We show that the presence of US troops generated a positive and radical historical shock for institutional development that survived to the present day and made the return to the previous status quo nearly impossible. The positive effects of troops’ presence are robust to a variety of specification checks and are particularly large for smaller cities. JEL Classification: C31, D74, N16, N46,

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“…Pre-industrial Latin America's financial and monetary history has experienced steady growth in the last two decades. New time series of the volume and structure of credit flows and monetary aggregates have complemented microeconomic analyses of financial services and provided a new vision of the region's financial patterns (Vizcarra and Sicotte 2009; Carrara 2010; Levy 2012; Torres 2014, 2021; Ortiz 2016; Valle and Ibarra 2017; Valencia 2018; Zegarra 2017a, 2017b). Despite these contributions, several puzzles remained to be studied.…”

mentioning

confidence: 99%

Credit networks and business dynamics in a viceregal capital: Santafé de Bogotá in the age of Charles III

Granados,

Torres

2023

Financial History Review

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This article provides aggregate data on credit flows in Santafé de Bogotá, the capital of the Viceroyalty of New Granada (present-day Colombia, Ecuador and western Venezuela). By perusing a thorough report submitted to Bourbon authorities on notarial transactions, which included both ecclesiastical and non-ecclesiastical loans in the city, the article estimates the volume and size of lending activity while exploring how distinct types of credit interacted and shaped the business milieu of the region. It argues that by the late 1770s, Catholic Church lending had ceased to be the main source of investable funds in the region, with merchants and other non-ecclesiastical investors injecting growing funds into sectors traditionally avoided by ecclesiastical lenders such as commerce, mining and manufacturing. Network analysis suggests that merchants became brokers between different credit sources, alleviating information asymmetries and opening the credit market to borrowers with collateral and institutional restrictions willing to pay higher interest rates. Finally, by focusing on New Granada, the largest gold producer of the Spanish Empire, the article identifies some distinctive credit patterns that are different from those developed in silver-driven economies such as New Spain and Peru. Thus, the article provides new paths to study Latin American financial history.

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War and Foreign Debt Settlement in Early Republican Spanish America

Cited by 9 publications

References 23 publications

Latin American Experiments in Central Banking at the Onset of the Great Depression

Latin American Experiments in Central Banking at the Onset of the Great Depression

Long-Term Effects of Radical Institutional Overhauls: Evidence from the Mexican-American War

Credit networks and business dynamics in a viceregal capital: Santafé de Bogotá in the age of Charles III

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