The People’s Budget

           Advocates of free trade have often promised it would bring more productive industry, the curtailment of monopolies, and more choice for consumers. However, free trade required a rethink of fiscal systems since, at least prior to the 20th century, most national governments relied on customs duties for a substantial part of their revenues. Those who

The Ottoman Debt Crisis

           When sovereign debt markets globally became more integrated in the 19th century, weaker debtors found a new way to finance deficits, borrowing from abroad. No longer would expedients to budget shortfalls, prudent or not, need to be found domestically. The advances of the 19th century enabled new borrowers to issue bonds to yield-hungry investors in

America’s Land Bubble

           In the history of financial bubbles, the assets at the center of attention have varied from equity and debt securities to commodities like tulips, indigo, and gold to real estate and land. The last of these was the object of great speculation in the early history of the United States. Indeed, it was a land

Alfred Winslow Jones and the First Hedge Fund

           In the decades after the ‘roaring twenties’ and the crash of 1929, American financiers gained a reputation for conservatism now rarely attributed to Wall Street. Investors, though still in search of good returns, seemed to appreciate the sound and tested and grew suspicious of the new and untried. New regulations introduced in the 1930s and

Pinochet, Pensions, and Chilean Markets

           Among the most dramatic and controversial economic transformations pursued in any country was that launched in Chile after the 1973 coup that brought General Augusto Pinochet to power. The civilian administrators he entrusted with the nation’s economy went about turning it into a neoliberal experiment. Their reforms included a restructuring of the country’s dated pension