Ling-Fan Li (LSE) EHS Postan Fellow

The Stop of Exchequer (1672): was the English domestic and international credit market disintegrated?

Ling-Fan completed her PhD in Economic History at London School of Economics and Political Science. Her thesis is to examine the development of financial markets in late medieval and early modern Europe, and estimate the degree of integration of financial markets over time by analysing a freshly compiled dataset. The study shows that in the late fourteenth century exchange markets were already integrated with regard to communication, and the transaction costs associated with arbitrage decline over time.

Her current research is to identify the connection between English domestic and international credit market in the late seventeenth century against the backdrop of the Stop of Exchequer in 1672, and to examine whether London goldsmiths played a role in providing credit to those engaged in overseas trade. The movement of the exchange rate of pound sterling did not fall ensuing credit contraction in London. Does this imply fragmentary credit markets or an outcome of backwardness of English financial institution? By examining the source of money on which the crown defaulted, some light can be shed on this question.