IDEAS home Printed from https://ideas.repec.org/a/cup/fihrev/v26y2019i02p127-145_00.html
   My bibliography  Save this article

International credit market integration in northwestern Europe in the 1670s

Author

Listed:
  • Li, Ling-Fan

Abstract

This article studies the financial market integration in the 1670s by examining the effectiveness of triangular exchange arbitrage. The results suggest that international credit markets based on bills of exchange in northwestern Europe were well integrated and responded to exchange-rate differences quickly. The speed of adjustment, ranging between one and three weeks, accorded with the speed of communication, but the transaction cost associated with exchange arbitrage was much lower than that of shipping bullion. Although warfare had a disruptive effect on exchange arbitrage by increasing transaction cost, markets were resilient in remaining efficient.

Suggested Citation

  • Li, Ling-Fan, 2019. "International credit market integration in northwestern Europe in the 1670s," Financial History Review, Cambridge University Press, vol. 26(2), pages 127-145, August.
    • Handle: RePEc:cup:fihrev:v:26:y:2019:i:02:p:127-145_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0968565019000027/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:fihrev:v:26:y:2019:i:02:p:127-145_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/fhr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.