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Chapter Summary

Participants in the capital market require a great deal of confidence in debtors, whom they entrust with their savings on the promise of regular interest payments. In the course of the high and late Middle Ages the counts of Holland gradually monopolized authority and replaced domanial and feudal structures with a government apparatus. The organization of economic exchange was among the main issues government agents and subjects had to face. Public debt helped pay for state formation. It not only strengthened the position of the centre, but it contributed greatly to the development of the periphery as well because it forced the public sector to organize and develop market structures that enabled the accumulation of capital. The popularity of renten is reflected in the concerns authorities had about the capital market.

Keywords: capital market; economic exchange; Holland; public debt; public sector; renten



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