Calendrier du 14 novembre 2018
Economic History Seminar
Du 14/11/2018 de 12:30 à 14:00
Salle R1.09, Campus Jourdan 48 Bd Jourdan 75014 Paris
ACCOMINOTTI Olivier (LSE)
The Origination and Distribution of Money Market Instruments: Sterling Bills of Exchange During the First Globalization
This paper presents a detailed analysis of how liquid money market instruments – sterling bills of exchange - were originated during the First Globalization. We rely on a unique dataset constructed from a previously unexploited archival source reporting systematic information on all bills rediscounted by the Bank of England in the year 1906. Using network analysis, we reconstruct the complete network of linkages between agents involved in the origination of London bills. Sterling bills always involved a “drawer” (a borrower in a foreign country), an “acceptor” (a London firm who guaranteed the bill’s payment), and a “discounter” (a lender). Our analysis reveals that acceptors/guarantors played a crucial role in solving the informational problem between lenders and borrowers. This ensured that risky private debts could be transformed into highly liquid monetary instruments, a function that was crucial to the position of London as the world’s leading international financial center.