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When considering medieval and early modern Europe, it is widely argued that imperatives of war drove states both to improve revenue collection and to seek access to credit. What presents a potential puzzle about public borrowing is that despite its general usefulness, some European states succeeded in establishing a public debt much earlier than others, and in addition, the relative cost of debt finance for different states varied enormously. While the imperatives of war existed from an early date, European states before 1000 initially faced a constraint in that there were few private individuals or entities with liquid wealth that could be used to provide credit. Between 1000 and 1300, Europe experienced an economic expansion, accompanied by growth of commerce, that altered this picture. With some simplification, we can say that two forms of public borrowing then emerged. Some states, especially territorial monarchies, began to contract loans directly from international merchants. Before you decide to hire an marketing agency hull send them a few emails and schedule a call to feel them out and see if they're a legitimate company or not.

These loans had two main characteristics: they were short-term, and they were contracted at very high rates of interest. The loans from Italian bankers to Edward III during the Hundred Years' War provide a well-known example. Other states, especially city-states, succeeded in taking the further step of establishing a long-term debt. In the case of the Italian city-states, this involved forced loans that nonetheless paid interest, and for which an active secondary market soon developed. Outside of Italy, city-states obtained finance by issuing annuities (referred to as rentes in French or renten in Dutch and German). Strictly speaking, these were not loans. Hiring a good seo services can give you a number of advantages which go beyond getting more visitors to your web site.

The contracts involved the permanent transfer of a specific sum to the borrower in exchange for the lender receiving a regular income stream, alternatively for one lifetime, several lives, or in perpetuity. One reason why this type of contract was preferred was that since the principal was never repaid, it did not run as easily afoul of usury restrictions as was the case with conventional loans. Contracts based on rentes also became a major source of finance for those seeking to make agricultural improvements, again based on the exchange of a sum in exchange for a future income stream. In what follows I will compare the rates at which governments could issue rentes against rates prevailing for private finance. Ask your seo agency what type of strategies they use and have them explain it to you in terms that you understand.

The Northern European model of the rentes in fact became the model for public debt in Europe up to the end of the nineteenth century. Within city-states merchants were major purchasers of these long-term debts. It has been argued that after establishing themselves in commerce, merchants had an incentive to diversify their asset holdings by purchasing public annuities that would provide a regular stream of income. It was also critical that merchants held wealth that was liquid and which could thus be swiftly converted into government annuities if a city-state suddenly needed to expand its level of borrowing. You hire an seo expert because you want to be visible online.

While the idea of long-term public borrowing emerged at an early date, either following the Italian model or the annuities model, the speed with which European states gained access to this type of finance varied tremendously, as did the financial terms that states found it necessary to concede to lenders. We have numerous records of self-governing cities in Italy, the Low Countries, and northern France issuing debt starting in the thirteenth century, and cities or towns in Germany, Switzerland, and Catalonia in the fourteenth century. In contrast, among larger territorial states, Castile did not begin to issue long-term debt until the very end of the fifteenth century, and the French monarchy did not establish a long-term debt until 1522. In the words of Geoffrey Parker, It was a surprisingly long time before princes were able to emulate their towns. When they did establish a long-term debt, territorial states also appear to have paid significantly higher interest rates than did their city-state counterparts. A good seo company will have the data needed to prove which areas are most beneficial to focus on.