“In contrast to the centuries during which it had charged for the money, the (English) government now paid for the currency it enabled. - As a conceptual matter, the new system raises an interesting issue, left aside here. It seems that the payment of interest on debt that is later canceled means that the system will never ‘clear’. In that sense, there appears to be an inflationary aspect to the modern strategy of liquidity creation, all else equal." — DESAN, C. (2015). Making Money: Coin, Currency, and the Coming of Capitalism. Oxford University Press. p. 296
Model Run Parameters
The model consumes real-world UK economic time-series data ranging from 1698 to 1974.
- Government Expenditure (Yearly): Millennium Dataset : Sheet A27. Central Government Revenue and Expenditure: Great Britain 1688-1801, United Kingdom 1801-2016. (Total Expenditure ‘TME’ minus interest payments.)
- Taxation Rate: 37%
- Interest Rate 0%
- For reference, if running with interest rates. BoE: Rate on Interest Bearing Government money Issued: Millennium Dataset: Sheet A31. Nominal and real interest rates, asset prices and yields.
- Coupon Rate: 0%
Military Events
Perrett, B. (2007) British Military History For Dummies. Chichester: John Wiley & Sons. ISBN: 9780470032138
Data Application
Visit the early modern system data app.