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This paper is a case study about investor behaviour of the government of Berne on capital markets in the 18th century, focussing mainly on London. Economic theory about principal-agent problems and portfolio administration will be used to analyse quantitative and qualitative data from government...
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allowed the Bank of England to nurture British monetary orthodoxy. The Order of the Privy Council suspended gold payments on … Bank of England notes and afforded simultaneous protection to the government and the Bank in pursuit of the conflicting … goals of price stability and war finance. The government, the Bank of England and the commercial banks formed a loose …
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