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Abstract:

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CentrePiece Article
Lessons from the Seven Years War
Isabel Schnabel and Hyun Song Shin
October 2003
Paper No' CEPCP150:
Full Paper (pdf)

CentrePiece 8 (3) Autumn 2003

A banking collapse in Amsterdam rocked European financial markets in 1763. Isabel Schnabel and Hyun Song Shin draw parallels between that crisis and the events that brought down Long-Term Capital Management in 1998, concluding that liquidity risk was the fundamental weakness in both cases.

This paper has been published as:
Isabel Schnabel and Hyun Song Shin, 'Liquidity and Contagion: The Crisis of 1763', Journal of the European Economic Association (Vol2 Issue 6) December 2004