Palgrave Studies in the History of Finance

The 1772–73 British Credit Crisis

Authors: Kosmetatos, Paul

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  • Covers an important historical episode that has not been covered before in its entirety
  • Charts the short but turbulent career of the Ayr Bank
  • Showcases the development of crisis containment policies and the recognition that many modern financial contagion mechanisms were already well in place in the mid-18th century
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eBook 95,19 €
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  • ISBN 978-3-319-70908-6
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Hardcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-319-70907-9
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-030-10001-8
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this book

Nowadays remembered mostly through Adam Smith’s references to the short-lived Ayr Bank in the Wealth of Nations, the 1772-3 financial crisis was an important historical episode in its own right, taking place during a pivotal period in the development of financial capitalism and coinciding with the start of the traditional industrialisation narrative. It was also one of the earliest purely financial crises occurring in peacetime, and its progress showed an impressive geographical reach, involving England, Scotland, the Netherlands and the North American colonies.

This book uses a variety of previously unpublished archival sources to question the bubble narrative usually associated with this crisis, and to identify the mechanisms of financial contagion that allowed the failure of a small private bank in London to cause rapid and severe distress throughout the 18th century financial system. It re-examines the short and turbulent career of the Ayr Bank, and concludes that its failure was the result of cavalier liability management akin to that of Northern Rock in 2007, rather than the poor asset quality alleged in existing literature. It furthermore argues that the Bank of England’s prompt efforts to contain the crisis are evidence of a Lender of Last Resort in action, some thirty years before the classical formulation of the concept by Henry Thornton.

About the authors

Paul Kosmetatos is Lecturer for International Economic History at the University of Edinburgh. Prior to embarking in his academic career in History, he studied Materials Science and Engineering and spent a decade trading financial derivatives in the City of London.

Table of contents (6 chapters)

Table of contents (6 chapters)
  • ‘A Year of Confusion, Dismay, and Distress’: The 1772–73 Financial Crisis and Its Potential Significance

    Pages 1-40

    Kosmetatos, Paul

  • A Minsky Bubble? Economic Growth and the Financial Sector in 1763–72

    Pages 41-122

    Kosmetatos, Paul

  • ‘Roguery’, ‘Stupidity’, and Permissive Regulation: Asset Speculation and Speculative Projects in 1763–72

    Pages 123-173

    Kosmetatos, Paul

  • Propagation and Containment: Financial Contagion and the Lender of Last Resort in 1772–73

    Pages 175-253

    Kosmetatos, Paul

  • Impact and Resolution

    Pages 255-293

    Kosmetatos, Paul

Buy this book

eBook 95,19 €
price for Spain (gross)
  • ISBN 978-3-319-70908-6
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-319-70907-9
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-030-10001-8
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules

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Bibliographic Information

Bibliographic Information
Book Title
The 1772–73 British Credit Crisis
Authors
Series Title
Palgrave Studies in the History of Finance
Copyright
2018
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s)
eBook ISBN
978-3-319-70908-6
DOI
10.1007/978-3-319-70908-6
Hardcover ISBN
978-3-319-70907-9
Softcover ISBN
978-3-030-10001-8
Series ISSN
2662-5164
Edition Number
1
Number of Pages
XXIV, 334
Number of Illustrations
36 b/w illustrations, 9 illustrations in colour
Topics