How are expropriations related to governments' debt defaults? The literature has shown that expropriation episodes and debt defaults have rarely coincided, suggesting that each event resulted from a different set of factors. The aim of this article is twofold. First, I analyse default–expropriation relationships in the years previous to the debt crisis of 1982. I show that while default and expropriation episodes did not always coincide, countries that expropriated at least once during the period were also those that defaulted more often. I observe that countries that expropriated had worse macroeconomic indicators than countries that did not. Second, I focus on the case of Mexico, when its announcement of a debt moratorium in August 1982 was followed, less than one month later, by the nationalisation of its banking system. Both events were outcomes of an acute economic crisis. The nationalisation announcement aggravated the crisis because an agreement with the International Monetary Fund (IMF) seemed increasingly uncertain. I provide evidence from the largely overlooked bond market (on which the government never defaulted) that shows that investors reacted negatively to the bank nationalisation. Finally, I present original, published and unpublished primary sources to demonstrate that commercial banks, as well as international organisations, expressed misgivings about the banks' nationalisation. This fact may have hindered the country's economic recovery through the deterioration of public confidence and a decline in foreign investment.

This article provides aggregate data on credit flows in Santafé de Bogotá, the capital of the Viceroyalty of New Granada (present-day Colombia, Ecuador and western Venezuela). By perusing a thorough report submitted to Bourbon authorities on notarial transactions, which included both ecclesiastical and non-ecclesiastical loans in the city, the article estimates the volume and size of lending activity while exploring how distinct types of credit interacted and shaped the business milieu of the region. It argues that by the late 1770s, Catholic Church lending had ceased to be the main source of investable funds in the region, with merchants and other non-ecclesiastical investors injecting growing funds into sectors traditionally avoided by ecclesiastical lenders such as commerce, mining and manufacturing. Network analysis suggests that merchants became brokers between different credit sources, alleviating information asymmetries and opening the credit market to borrowers with collateral and institutional restrictions willing to pay higher interest rates. Finally, by focusing on New Granada, the largest gold producer of the Spanish Empire, the article identifies some distinctive credit patterns that are different from those developed in silver-driven economies such as New Spain and Peru. Thus, the article provides new paths to study Latin American financial history.

This article analyses the structure and changes of large companies based on a new database of the 200 largest non-financial firms operating from 1913 to 1971 in Argentina. The main contribution of the research consists of the elaboration of the rankings of the 200 largest companies according to their paid-up capital between 1913 and 1971 and the construction of a database of large companies based on homogeneous sources and criteria. The study identifies the long-lasting presence of family-based diversified business groups and foreign multinationals from the first global period to the end of Import Substitution Industrialisation. It also shows that the presence of foreign companies among the 200 largest firms is higher than that identified in other countries. The study constitutes the first comprehensive research into big business in Argentina until the 1970s and a first attempt to identify the life cycles of the largest companies in Argentina.

Was there an early consumer revolution in Hispanic America? This article presents varied evidence supporting an affirmative answer to this question, especially regarding the case of New Spain. The inauguration of the Manilla Galleon trade route across the Pacific Ocean in 1565 was decisive in this respect. It made it possible that Asian goods (more or less finished silk and cotton textiles, porcelain, lacquerware, ivory religious images, furniture and spices, mainly) experienced an early diffusion throughout New Spain after arriving in Acapulco. This innovation in consumption patterns was adopted first by the elites, not much later, by the intermediate classes and, rather soon than not, by the commoners. Primary (i.e. Avalúos of the galleons' cargo) and secondary sources permit quantitatively exploring the possibilities of consumption of Asian goods by unprivileged segments of New Spain's population. We find that a non-negligible number of those goods were accessible to Mexico City labourers. Thus, it may be inferred that upper segments of society accessed it earlier and more easily. Therefore, New Spain should be included in any global narrative of the changes in consumption during the Early Modern Era.

Devaluations were traditionally considered to be expansionary in the short run and have no real long-run effects. Alternatively, some observers in developing countries found that devaluations were contractionary on impact, and that they might foster long-term growth. Using Argentina as a case study, which is convenient due to its long series availability and its subsequent switches in exchange rate regimes, four structural shocks are identified in line with the traditional and alternative views. It is found that devaluations were mostly contractionary, and that real long-run effects were only possible when inflation was either low or moderate. In light of the estimates, a historical revision of Argentinean devaluation episodes from 1854 to 2018 has been carried out.

Although paper note issuance increased dramatically in Argentina during the Triple Alliance War, inflation was not significant. This occurred because only a fraction of the increase in paper bills led to an expansion of the money supply, the rest being currency substitution. On the other hand, an increase in the demand for money for transactions was generated by rapid economic growth.

The purpose of this paper is to determine trends in the wages and living standards of male agricultural labourers in Central Chile during the agrarian expansion, c. 1870-1930. We found that nominal wages increased eightfold; this is relevant because wage labour became the main rural labour regime in this period. Nominal wages rose steadily from the early 1870s until 1910, and with significant fluctuations thereafter, before plummeting with the Great Depression. Real wages also increased, but only slightly. Furthermore, during certain short periods, agricultural labourers' real wages were similar to or higher than those of low-skilled urban workers. However, the persistent gap between agricultural and non-agricultural wages was one of the causal factors of the outmigration of rural workers.

Using social tables and modern household surveys, this article explores Brazil's income distribution from a historical perspective (1850-2010), examining its relationship with economic development and the factors driving inequality changes. It shows that Brazil's inequality was not always high, but rather followed a Kuznets curve, increasing from the early 20th century, reaching a high plateau between the 1970s and 1990s and declining thereafter. Notably, results highlight the importance of both economic and political factors for enabling the completion of the second Kuznets curve phase.

The outbreak of the First World War had a strong impact on Latin American economies, due to the sharp interruption of the influx of capital and the deep disturbances that it caused in international trade. In the Argentine case, a notable aspect was, together with the increase in the fiscal deficit, the growing trade and payment balance surplus. Public indebtedness was reoriented towards the domestic market by the means of a state bank Banco de la Nación, and this institution also granted a large loan to the governments of England and France, to finance the export of cereals to those countries. This work seeks to contribute both to the debate on the financial impact of the war and postwar conflict in Argentina, as well as to the role of public banks to mitigate the ups and downs of the external sector and mitigate its effects on local actors.

Based on primary sources, baskets of consumption for Buenos Aires are reconstructed for the 1780-1820 period, applying current international methodologies. They build on previous work based on 1835 data. It can be seen that the consumption pattern did not vary substantially in the period and, considering the salary of both urban and rural workers, we are able to establish that standards of living were high and experienced a significant increase after 1835, especially during the 1840s. This placed Buenos Aires among the cities of the Western world with highest welfare ratio levels.

This article presents new evidence and analysis on age heaping—a proxy for numeracy and therefore for human capital—in New Spain during the Enlightenment. Human capital plays an important role in economic growth and welfare. It is also one of the dimensions of inequality. Our results are at odds with many of the usual assumptions on which most Mexicanist historiography is based. Age heaping levels of males and females and ethnic groups across locations in Central New Spain are estimated and compared through ad hoc indicators with other countries. We infer that a more empirical emphasis on the institutional legacy of the viceregal period and more attention to human capital since pre-Conquest times will benefit the progress of Hispanic American economic history.

This paper examines the cost of living and evolution of welfare ratios among urban workers in Rio Grande's vila, the main commercial enclave of the southern Portuguese dominions in America. From diverse sources (military and hospital expenditure accounts, merchant credit bills from probate inventories), we build different consumption baskets to calculate their cost in seven benchmark years: 1772, 1792, 1802, 1809, 1816, 1819 and 1823. The evolution of cost of living shows a consistent upward trend during the period, which, however, does not substantially affect welfare ratios. In order to build regional comparisons, we follow Allen's methodology (2001) to estimate welfare ratios of skilled and unskilled workers in Rio Grande, Buenos Aires and Montevideo. The results of using this approach could be useful to adjust the methodology for further international comparisons.

The present paper intends to contribute with new information to a reconstruction of the Sephardic presence in the Macao–Manila commercial network. For this purpose, in the first place, we intend to trace the profile of the Judaeo-converso merchants arriving in China and the Philippines and to reconstruct the commercial networks to which they belonged during the 16th and early 17th centuries.

The important role of Chinese demand for silver in stimulating worldwide silver-mining and shaping the first truly global trading system has become commonly recognised in the world history scholarship. The commercial dynamism of China during the 16th-19th centuries was integrally related to the importation of foreign silver, initially from Japan but principally from Latin America. Yet the significance of imports of Latin American silver for the Chinese economy changed substantially over these three centuries in tandem with the rhythms of China's domestic economy as well as the global trading system. This article traces these changes, including the adoption of a new standard money of account—the yuan—derived from the Spanish silver peso coin.

This article scrutinizes the results of the mission carried out by Edwin Walter Kemmerer in Mexico during 1917. Based on unpublished materials from his private archive, as well as other Mexican archives, this article analyses the process of approval, installation and implementation of the reforms introduced by Kemmerer's mission in Mexico. It is argued that Kemmerer's work as a financial advisor for Venustiano Carranza was not a total failure, as the existing literature on the subject claims. Indeed, on the eve of Great Depression, Mexico exhibited the main institutional features of ‘Kemmererized’ countries: a central bank, the gold standard and a centralized tax system. It is also suggested that the economic knowledge brought into the country by the money doctor moulded the ideological foundation of the new financial and economic elite of revolutionary Mexico.

Traditional historical literature has stressed a generalised crisis throughout the world in the 17th century. First proposed for Europe with its numerous dynastic, religious and state conflicts, it has now been expanded to include Asia and the Middle East as well. It was also assumed that there was a significant crisis in the Americas, a theme which until recently has dominated the traditional literature. The claim that there was such a crisis was based on a series of classic studies by Earl J. Hamilton, Chaunu and Borah, among others. But new research has challenged this hypothesis and we will examine both these new studies as well as offering our own research findings on this subject.

This article makes a contribution to the empirical and methodological discussion on the standard of living in Latin America during the colonial period. It presents evidence obtained from primary sources on the evolution of nominal wages, cost of living and real wages for 10 occupational categories in the region of Montevideo between 1760 and 1810. The results place rural laborers and masons in Montevideo below subsistence levels until at least the first decade of the 19th century, a finding that is difficult to reconcile with the demographic and productive growth of the region at the same time. Wages may not be the main component in the structure of family income among the subordinate sectors of the colonial Río de la Plata.

The monetary policies of the decade studied had a direct influence on the evolution of real wages in Ecuador. The gold standard brought with it the increase in real wages until 1932. In February 1932, the Ecuadorian Government decided to abolish the gold standard which, together with a heavy public expenditure, produced a significant increase in money supply causing high levels of inflation. The evolution of real wages in Ecuador is similar to the evolution registered in Latin America in two important aspects: in both cases an upward trend in real wages can be observed once the international crisis began; after the increase in the purchasing power of wages, there is a decline. This study is the first research trying to understand the impact of the Great Depression in Ecuador through the evolution of real wages.

This article analyzes sovereign debt defaults in four Latin American countries—Argentina, Brazil, Chile and Mexico—for the period 1870-2012. The impact of sovereign defaults on real GDP growth is generally short-lived, while the impact in terms of output losses is deep and lasts long. Defaults in the period 1972-2012 show a deep and long-lasting impact compared to defaults in earlier periods. Moreover, the length of the contraction that follows a default is associated with favourable international conditions in the run-up to a default, while the depth of the contraction is associated with an expansive domestic economy in the run-up to a default. The results fit with boom–bust theories and sudden stop models.

The essay examines Spain’s colonial legacy in the long-run development of Spanish America. It surveys the fiscal and constitutional outcomes of independence and assesses the relative burden imposed by colonialism. Constitutional asymmetries between revenue collecting and spending agents constrained de facto governments’ power to tax. Inherent disparities embedded in the colonial fiscal system worsened with vaguely defined representation for subjects and territories and vexed their aggregation into a modern representative polity. Governments with limited fiscal capacity failed to deliver public goods and to distribute the costs and benefits of independence equitably. Growing indirect taxes, debt and money creation allowed them to transfer the fiscal burden to other constituents or future generations. Taxpayers became aware of the asymmetry between private contributions and public goods and hence favoured a low but regressive taxation. Comparisons with trajectories in the metropolis and the United States are offered to qualify this legacy.