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L'impact de la loi de 1862 généralisant la responsabilité limitée au secteur bancaire et financier sur la crise anglaise de 1866


  • David Foucaud


The English crisis of 1866 is still a mystery about its causes and its effects. It is difficult to understand why just England was hit whereas the others countries of Europe remained safe. The main effect of the crisis, a general distrust of all the countries of Europe about England, is difficult to understand too. The idea exposed in this paper is that the crisis of 1866 was provoked by the deregulation of 1862, which allowed every company to register under the limited liability principle. This act deeply changed the behavior of the entrepreneurs. This change led to the appearance of a systemic risk in the banking sector. By this way, we can explain why no contagion appeared and why European countries distrusted England. Classification JEL : F3, G 1

Suggested Citation

  • David Foucaud, 2011. "L'impact de la loi de 1862 généralisant la responsabilité limitée au secteur bancaire et financier sur la crise anglaise de 1866," Revue économique, Presses de Sciences-Po, vol. 62(5), pages 867-897.
  • Handle: RePEc:cai:recosp:reco_625_0867

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    JEL classification:

    • F3 - International Economics - - International Finance


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