Mauricio Drelichman

It has been the received wisdom, at least since Braudel, that Philip II of Spain was the first serial defaulter on sovereign debt and ruined both Spain and the bankers with his profligacy. Drelichman und Voth have actually read the corresponding documents and come to very different conclusions. Philip defaulted on short term loans only, which constituted a fraction of overall debt, he and his creditors always arranged restructurings, and they continued lending because in the long run they earned very hefty profits.
I admit that some of the mathematics went over my head, and I cannot quite see how 21st century ideas of profitability and risk assessment can comfortably sit with 16th century ledgers, but the results are fascinating nonetheless. Equations apart, this was an easy read from which I learned a lot. And the acknowledgements are fun, very tongue-in-cheek!… (mere)