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States of Credit - Size, Power, and the Development of European Polities (Paperback)
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States of Credit - Size, Power, and the Development of European Polities (Paperback)
Series: The Princeton Economic History of the Western World
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States of Credit provides the first comprehensive look at the joint
development of representative assemblies and public borrowing in
Europe during the medieval and early modern eras. In this
pioneering book, David Stasavage argues that unique advances in
political representation allowed certain European states to gain
early and advantageous access to credit, but the emergence of an
active form of political representation itself depended on two
underlying factors: compact geography and a strong mercantile
presence. Stasavage shows that active representative assemblies
were more likely to be sustained in geographically small polities.
These assemblies, dominated by mercantile groups that lent to
governments, were in turn more likely to preserve access to credit.
Given these conditions, smaller European city-states, such as Genoa
and Cologne, had an advantage over larger territorial states,
including France and Castile, because mercantile elites structured
political institutions in order to effectively monitor public
credit. While creditor oversight of public funds became an asset
for city-states in need of finance, Stasavage suggests that the
long-run implications were more ambiguous. City-states with the
best access to credit often had the most closed and oligarchic
systems of representation, hindering their ability to accept new
economic innovations. This eventually transformed certain
city-states from economic dynamos into rentier republics. Exploring
the links between representation and debt in medieval and early
modern Europe, States of Credit contributes to broad debates about
state formation and Europe's economic rise.
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