Crowding in during the Seven Years’ War

Sissoko, Carolyn; Palma, Nuno

Abstract

We present a financial history of the Seven Years’ War (1756–1763) using a new dataset derived from the Bank of England minutes. We argue that the war and the associated actions of the Bank of England led to a transformation of the financial system. Additionally, while there was short-term crowding out of private investment when interest rates rose due to the issue of war-related government debt, in the long-run there was crowding in: government spending led to an increase in private sector investment.

• Journal Article Type: Article
• Acceptance Date: Jun 18, 2024
• Online Publication Date: Jul 13, 2024
• Publication Date: Jul 13, 2024
• Deposit Date: Jul 11, 2024
• Publicly Available Date: Jul 24, 2024
• Journal: Journal of Government and Economics
• Electronic ISSN: 2667-3193
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 14
• Article Number: 12120762
• DOI: https://doi.org/10.1016/j.jge.2024.100109
• Public URL: https://uwe-repository.worktribe.com/output/12120762