Journal ArticleDOI
The Making of a Continental Financial System: Lessons for Europe from Early American History
TLDR
The first U.S. Treasury Secretary from 1789 to 1795, Alexander Hamilton as discussed by the authors, was the first to successfully manage expectations, achieved debt service reduction, and stabilized financial panics.Abstract:
Alexander Hamilton was the first U.S. Treasury Secretary from 1789 to 1795. When he started, the Federal Government was in default. During his tenure, U.S. Treasuries became the ultimate safe asset. He successfully managed expectations, achieved debt service reduction, and stabilized financial panics. He delivered sound public finances and financial stability. In the end, the U.S. possessed a modern financial system able to finance innovation and growth. At a time when Europe is working its way out of the sovereign debt crisis and implementing Banking Union and Financial Union, it is worthwhile to search for lessons from early U.S. history.read more
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Journal ArticleDOI
The Making of a Continental Financial System: Lessons for Europe from Early American History
TL;DR: The first US Treasury Secretary from 1789 to 1795, Alexander Hamilton as discussed by the authors, managed expectations, achieved debt service reduction, and stabilized financial panics, and delivered sound public finances and financial stability.
References
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Journal ArticleDOI
Bank Runs, Deposit Insurance, and Liquidity
TL;DR: The authors showed that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits, and showed that there are circumstances when government provision of deposit insurance can produce superior contracts.
Journal ArticleDOI
Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England
TL;DR: In this article, the authors study the evolution of the constitutional arrangements in seventeenth-century England following the Glorious Revolution of 1688 and argue that the new institutions allowed the government to commit credibly to upholding property rights.
Journal ArticleDOI
Debt with Potential Repudiation: Theoretical and Empirical Analysis
Jonathan Eaton,Mark Gersovitz +1 more
Journal ArticleDOI
The Behavior of U. S. Public Debt and Deficits
TL;DR: This article showed that the U.S. primary surplus is an increasing function of the debt-GDP ratio and that U. S. fiscal policy is satisfying an intertemporal budget constraint.
Posted Content
Default risk and income fluctuations in emerging economies
TL;DR: This paper developed a small open economy model to study default risk and its interaction with output, consumption, and foreign debt, which predicts that default incentives and interest rates are higher in recessions, as observed in the data.