Jump to ContentJump to Main Navigation
Lending to the Borrower from HellDebt, Taxes, and Default in the Age of Philip II$
Users without a subscription are not able to see the full content.

Mauricio Drelichman and Hans-Joachim Voth

Print publication date: 2014

Print ISBN-13: 9780691151496

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691151496.001.0001

Show Summary Details
Page of

PRINTED FROM PRINCETON SCHOLARSHIP ONLINE (www.princeton.universitypressscholarship.com). (c) Copyright Princeton University Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in HSO for personal use (for details see http://www.universitypressscholarship.com/page/privacy-policy).date: 22 April 2018

The Sustainable Debts of Philip II

The Sustainable Debts of Philip II

Chapter:
(p.105) Chapter 4 The Sustainable Debts of Philip II
Source:
Lending to the Borrower from Hell
Author(s):

Mauricio Drelichman

Hans-Joachim Voth

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691151496.003.0005

This chapter addresses the sustainability of debt. A systematic analysis based on the International Monetary Fund's (IMF) methodology to evaluate fiscal sustainability shows that Castile was able to service its debts in the long run. While liquidity was scarce during periods of intense warfare, years of relative peace brought large surpluses. The data collected from Castile's annual fiscal accounts produced new yearly series of revenue, military expenditure, short-term debt issues, and short-term debt service. The resulting database spans a full 31-year period—enough to employ modern quantitative techniques. This analysis provides strong evidence that Castile's fiscal position in the second half of the sixteenth century was on a solid footing. The chapter then assesses whether the events that led to major downturns in Castile's financial fortunes could have been anticipated.

Keywords:   debt sustainability, International Monetary Fund, fiscal sustainability, Castile, liquidity, annual fiscal accounts, revenue, military expenditure, short-term debt

Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.