{"product_id":"lending-to-the-borrower-from-hell-debt-taxes-and-default-in-the-age-of-philip-ii-9780691173771","title":"Lending to the Borrower from Hell: Debt, Taxes, and Default in the Age of Philip II","description":"\u003cp\u003e\u003cb\u003eWhat the loans and defaults of a sixteenth-century Spanish king can tell us about sovereign debt today\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\u003c\/p\u003eWhy do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. \u003ci\u003eLending to the Borrower from Hell\u003c\/i\u003e looks at one famous case--the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, Mauricio Drelichman and Hans-Joachim Voth analyze the lessons from this important historical example. \u003cp\u003e\u003c\/p\u003eUsing detailed new evidence collected from sixteenth-century archives, Drelichman and Voth examine the incentives and returns of lenders. They provide powerful evidence that in the right situations, lenders not only survive despite defaults--they thrive. Drelichman and Voth also demonstrate that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The authors unearth unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. \u003cp\u003e\u003c\/p\u003eA fascinating story of finance and empire, \u003ci\u003eLending to the Borrower from Hell\u003c\/i\u003e offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e Mauricio Drelichman, Hans-Joachim Voth\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Princeton University Press\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 12\/13\/2016\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 328\u003cbr\u003e\u003cb\u003eBinding Type:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 1.12lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.21h x 6.14w x 0.74d\u003cbr\u003e\u003cb\u003eISBN:\u003c\/b\u003e 9780691173771\u003cbr\u003e\u003cp\u003e\u003cb\u003eAbout the Author\u003c\/b\u003e\u003cbr\u003e\u003cb\u003eMauricio Drelichman\u003c\/b\u003e is associate professor in the Vancouver School of Economics at the University of British Columbia and a fellow in the Institutions, Organizations, and Growth program of the Canadian Institute for Advanced Research. \u003cb\u003eHans-Joachim Voth\u003c\/b\u003e is ICREA Research Professor in the Economics Department at Universitat Pompeu Fabra, Barcelona, where he is also a member of the Centre for Research in International Economics. He is the author of \u003ci\u003eTime and Work in England during the Industrial Revolution\u003c\/i\u003e and coauthor of \u003ci\u003ePrometheus Shackled\u003c\/i\u003e.\u003cbr\u003e\u003c\/p\u003e","brand":"Princeton University Press","offers":[{"title":"Paperback","offer_id":40191857426547,"sku":"9.78E+12","price":32.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0555\/9255\/0515\/products\/img_be83b276-beb3-4606-9e7a-12d8313c99cc.jpg?v=1655905715","url":"https:\/\/bookstorenmore.com\/products\/lending-to-the-borrower-from-hell-debt-taxes-and-default-in-the-age-of-philip-ii-9780691173771","provider":"Bookstore N More","version":"1.0","type":"link"}