Tag Archives: Economic history

Figure III in Paul Schmelzing (2019), Eight Centuries of Global Real Interest Rates, R-G, and the ‘Suprasecular’ Decline, 1311–2018. SSRN.

On Bank Underground, Paul Schmelzing looks at real interest rates over the last 700 years and finds that … the past 30-odd years more than hold their own in the ranks of historically significant rate depressions. But the trend fall seen over this period is a but a part of a much longer ”millennial trend”. It is thus unlikely that current dynamics can be fully rationalized in a “secular stagnation framework”.

In a paper, Davide Cantoni, Jeremiah Dittmar, and Noam Yuchtman argue that the Protestant reformation after the year 1517 triggered major reallocation, due to religious competition and political economy. [T]he Reformation produced rapid economic secularization. … shift in investments in human and fixed capital away from the religious sector. Large numbers of monasteries were expropriated … particularly in Protestant regions. This transfer of resources shifted the demand for labor...

In recent months, Ray Dalio seems to be undergoing a deep midlife and identity crisis, which has not only led to dramatic recent management changes at the world’s largest hedge fund, Bridgewater, but also resulted in some fairly spectacular cognitive dissonance, as Dalio first praised, then slammed, president Trump. Yesterday. in the latest expression of his building anti-Trumpian sentiment, Bridgewater released a...

In The Great Leveler, Walter Scheidel argues that over thousands of years, only mass violence and catastrophes have triggered significant reductions in inequality. From the book’s introduction: For thousands of years, civilization did not lend itself to peaceful equalization. … stability favored economic inequality. This was as true of Pharaonic Egypt as it was of Victorian England, as true of the Roman Empire as of the United States. … Four different kinds of violent ruptures have...