Swedish Financial Revolution (eBook)

A. Ogren (Herausgeber)

eBook Download: PDF

2016
XVI, 230 Seiten
Palgrave Macmillan UK (Verlag)
978-0-230-29723-4 (ISBN)

Infos

How did Sweden go from a financially backward country to one with a well functioning financial system? Why did this financial revolution occur after the mid-nineteenth century and not before? This book discusses the role of politics and economics in this change and what it means for economic development, market integration and financial crises.

Autor

ANDERS ÖGREN is Assistant Professor at EHFF – The Institute for Research in Economic History, Stockholm School of Economics, Sweden, and Lecturer at Institute d'Études Politiques de Paris (SciencesPo), France. He is also Associated Researcher at both EconomiX, Université de Paris Ouest Nanterre La Défense, France, and UCBH – Uppsala Center for Business History, Uppsala University, Sweden. Ögren's main research fields are financial and monetary history, and history of economic thought on which he has published in edited collections and several international journals.

Inhalt

Cover 1
Title 4
Copyright 5
Contents 6
List of Illustrations 11
Notes on Contributors 13
1 The Swedish Financial Revolution: An In-Depth Study 18
Introduction 18
The financial revolution 19
Finance and growth 21
The Swedish financial revolution 22
Institutional changes and the financial revolution 27
Aim of this book 28
Notes 28
References 29
2 The Early Modern Financial System and the Informal Credit Market 31
Introduction 31
Financial and currency problems in early modern Sweden 31
The Swedish credit market, 1720–1834 35
The private credit market 36
Public lending 39
The manufacturing discount bank: A state industry-financed bank 41
The road to the 1834 currency reform 43
The background to the 1777 and 1803 currency reforms 43
The 1830s: The parliament finally takes control of financial power 46
Epilogue: The manufacturing discount bank’s contribution to the nineteenth century 47
Notes 48
References 51
3 The Deposit Market Revolution in Sweden 58
Introduction 58
The deposit market revolution 59
The early stage, 1820–1860 60
Savings banks being market makers 61
Commercial banks entering the deposit market arena 64
The early depositors 66
Expansion and breakthrough, 1860–1880 68
Savings banks’ accelerating growth on the deposits market 68
Commercial banks become more interested in deposits 69
A market for life insurance 70
Post deposit revolution, 1880–1913 71
New actors enter the arena 72
The deposit market enters a more mature stage 73
The modern saver enters the deposit market arena 74
Conclusion 75
Notes 76
References 78
4 Cooperation, Interbank Markets and Bank-Industry Networks: The Growth and Characteristics of Swedish Bank Lending, 1860–1910 81
Introduction 81
What was the problem and who was going to solve it? 84
Cooperation and the establishment of interbank markets 86
Local bank-industry networks and insider lending 89
Conclusion 91
Notes 92
References 93
5 The Modernization of the National Bank of Sweden: The Riksbank 96
Introduction 96
Responsibility of the currency and issuance of base money: Monetary policy of the Riksbank 97
The Riksbank as the bank of the state: The importance of the National Debt Office 102
The Riksbank as the bankers’ bank 105
The Riksbank as lender of last resort 107
Conclusion 108
Notes 109
References 110
6 The Evolution of Secondary Financial Markets, 1820–1920 112
Introduction 112
The rise of secondary financial markets in Sweden: Quantitative evidence 113
Trading securities pre-financial revolution 115
The establishment of an exchange for the trading of securities 118
Market efficiency and market breadth: Stock market modernization, 1900–1920 122
Concentration of exchange to get reliable prices and public control to enhance stability and trust – two instrumental explanations 125
Notes 127
References 128
7 Market Integration 1830–1890 130
Introduction 130
The payments system and credit instruments 132
Commercial banks and integration 137
Conclusion 141
Notes 141
References 142
8 Incorporation and Financial Modernization 145
Introduction 145
The demand for incorporation 148
Iron-works and the law of 1848 148
The modern company law of 1895 150
The breakthrough for the limited liability joint-stock company 151
Incorporating new sectors 151
New ventures and the transformation of older firms 154
Incorporation and financial modernization 155
The transformation of capital 155
Commercial banks, at the centre of development 157
Conclusion 158
Notes 159
References 160
9 The Swedish Financial Revolution and the Insurance Industry 162
Introduction 162
The formation of a modern insurance market 164
Legislation and the insurance industry 167
Insurance as a source of external finance – financing the industrial revolution? 168
Insurance as a source of external finance – three case studies 171
The bond portfolio of Skandia, 1878–1915 176
Conclusion 179
Notes 185
References 185
10 The State and the Financial System: Regulation and Regime Change around 1900 187
Introduction 187
The need for capital – an organizational perspective 188
The financing of the building sector 189
Industrial financing 191
The growth of the Stockholm stock market 193
Institutional changes under the second financial revolution 193
Commercial banks 194
Savings banks 195
Insurance companies 196
Conclusion 196
Notes 197
References 198
11 Why do Banking Crises Occur? An Evolutionary Model of Swedish Banking Crises 200
Introduction 200
Kindleberger’s stage-model 201
Market psychology, speculation and rhetoric 202
An evolutionary model for banking crises 203
Conceptual framework 205
Empirical analysis – three Swedish banking crises 207
Period I 207
Period II 212
Period III 214
Conclusion 217
Notes 218
References 219
12 What we can Learn from the Swedish Financial Revolution: An International Comparison 221
Introduction 221
The financial revolution as a model 221
The financial revolution – international experiences 225
The Swedish financial revolution – a summary 230
Notes 239
References 239
Index 241

Produkt-Details

• Erscheint lt. Verlag: 30.4.2016
• Reihe/Serie: Palgrave Macmillan Studies in Banking and Financial Institutions
• Reihe/Serie: Palgrave Macmillan Studies in Banking and Financial Institutions
• Zusatzinfo: XVI, 230 p.
• Verlagsort: London
• Sprache: englisch
• Themenwelt: Geisteswissenschaften ► Geschichte ► Regional- / Ländergeschichte
• Themenwelt: Geschichte ► Teilgebiete der Geschichte ► Wirtschaftsgeschichte
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Schlagworte: Bank • Banking • Economic Development • growth • History • Revolution
• ISBN-10: 0-230-29723-4 / 0230297234
• ISBN-13: 978-0-230-29723-4 / 9780230297234