Strategic Terror: Philip II and Sixteenth-Century Warfare

1997 ◽  
Vol 4 (3) ◽  
pp. 339-348 ◽  
Author(s):  
M.C. Waxman
Keyword(s):  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth

This chapter addresses the sustainability of debt. A systematic analysis based on the International Monetary Fund's (IMF) methodology to evaluate fiscal sustainability shows that Castile was able to service its debts in the long run. While liquidity was scarce during periods of intense warfare, years of relative peace brought large surpluses. The data collected from Castile's annual fiscal accounts produced new yearly series of revenue, military expenditure, short-term debt issues, and short-term debt service. The resulting database spans a full 31-year period—enough to employ modern quantitative techniques. This analysis provides strong evidence that Castile's fiscal position in the second half of the sixteenth century was on a solid footing. The chapter then assesses whether the events that led to major downturns in Castile's financial fortunes could have been anticipated.


Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.


2017 ◽  
Vol 21 (4) ◽  
pp. 318-342
Author(s):  
Flora Cassen

A bitter conflict between the Spanish and Ottoman empires dominated the second half of the sixteenth century. In this early modern “global” conflict, intelligence played a key role. The Duchy of Milan, home to Simon Sacerdoti (c.1540-1600), a Jew, had fallen to Spain. The fate that usually awaited Jews living on Spanish lands was expulsion—and there were signs to suggest that King Philip ii (1527-1598) might travel down that road. Sacerdoti, the scion of one of Milan’s wealthiest and best-connected Jewish families had access to secret information through various contacts in Italy and North-Africa. Such intelligence was highly valuable to Spanish forces, and Philip ii was personally interested in it. However, this required Sacerdoti to serve an empire—Spain—with a long history of harming the Jews, and to spy on the Ottomans, widely considered as the Jews’ supporters at the time. This article offers a reflection on Simon Sacerdoti’s story. Examining how a Jew became part of the Spanish intelligence agency helps us understand how early modern secret information networks functioned and sheds new light on questions of Jewish identity in a time of uprootedness and competing loyalties.


2010 ◽  
Vol 70 (4) ◽  
pp. 813-842 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth

The defaults of Philip II have attained mythical status as the origin of sovereign debt crises. We reassess the fiscal position of Habsburg Castile, deriving comprehensive estimates of revenue, debt, and expenditure from new archival data. The king's debts were sustainable. Primary surpluses were large and rising. Debt-to-revenue ratios remained broadly unchanged during Philip's reign. Castilian finances in the sixteenth century compare favorably with those of other early modern fiscal states at the height of their imperial ambitions, including Britain. The defaults of Philip II therefore reflected short-term liquidity crises, and were not a sign of unsustainable debts.


Author(s):  
Aleksandr Kiselev ◽  

Introduction. The visit of the Russian envoy Osip Nepeya to London in 1556–1557 is usually considered as the beginning of the official relations between Russia and England. In the light of modern views about the sixteenth-century diplomacy, this event requires a more thorough research. Methods. The Nepeya’s trip was traditionally viewed as an insignificant episode in the context of general reviews of bilateral relations concentrated mainly on trade. The reasons and possibilities of the military and political rapprochement between England, Spain and Russia in the 1550s, which was the most likely goal of the Nepeya’s journey to England, have never been investigated. Therefore, this article is based on an analysis of numerous multilingual sources. Analysis. The author clarifies the Nepeya’s diplomatic rank and certain previously unknown details of the Muscovites’ stay in London. He analyzes Nepeya’s mission to England in the context of foreign affairs of Ivan IV, Mary Tudor and Philip II Habsburg. Results. It is concluded that the rulers of Spain and England could provide military support to Ivan IV, but they were not interested in military and political alliance with the Muscovy and the war against Turkey. However, establishing official equal relations between England and Russia at the highest level, as well as obtaining trade privileges for Russian merchants was the main result of Nepeya’s trip. This allows us to conclude that the first Russian diplomatic mission in London was successful.


2017 ◽  
pp. 241
Author(s):  
Chenguang Li

<p>El presente artículo analiza un acontecimiento significativo pero poco conocido: la primera embajada que Felipe II envió a China. Através de las fuentes relativas a esta expedición, podemos contemplar cómo funcionaba la administración de la Castilla del siglo XVI en lo que concierne a los asuntos diplomáticos. Además, cabe<br />prestar especial atención a la carta escrita por Felipe II y dirigida al emperador de China. Con ella, no solo podemos ampliar nuestros conocimientos sobre el monarca hispano en relación con sus perspectivas sínicas, sino que también nos permite observar las estrategias y los métodos adoptados para crear contactos con aquel imperio.</p><p><strong>Abstract</strong></p><p>The present article analyzes a profound significance but rarely known historical event: The first diplomatic mission of the Emperor Philip II sending to China.<br />We can approach and understand the decision-making mechanism of the Spanish government to complete such diplomatic missions in sixteenth century. In addition, Philip II once wrote to the Chinese emperor one letter, through which we can not only know the Spanish monarch´s familiarity and relevant knowledge of China, but also can observe the methods and tactics that Philip II used in his attempt to establish diplomatic<br />relations with that Empire.</p>


PMLA ◽  
1892 ◽  
Vol 7 (3) ◽  
pp. 1-119

The introduction of the pastoral romance into Spain in the middle of the sixteenth century, and the extreme favor with which it was received, may, in view of the social condition of the country, seem at first sight paradoxical. At the time of the accession of Philip II, Spain was at the zenith of her military greatness: her possessions were scattered from the North Sea to the islands of the Pacific; and her conquests had been extended over both parts of the western world. The constant wars against the Moors, during a period of over seven hundred years, and the stirring ballads founded upon them, had fostered an adventurous and chivalric spirit,—a distinguishing trait of the Spanish character. Arms and the church were the only careers that offered any opportunity for distinction, and every Spanish gentleman was, first of all, a soldier.


1956 ◽  
Vol 12 (03) ◽  
pp. 234-245
Author(s):  
Gordon Griffiths

The contest between monarchy and representative institutions had a unique outcome in the Netherlands in the sixteenth century as a result of several factors. The most obvious of these is the fact that their rulers had inherited a royal title in Castile and Aragon. The financial and administrative institutions of the modern state which the monarchs attempted to introduce into their possessions in the Low Countries were therefore bound to be regarded as foreign importations. They conflicted with the representative institutions which had grown up in the Netherlands as elsewhere in Europe during the Middle Ages. The chief of these, the Estates-General, continued to flourish in the Low Countries long after they had entered upon hopeless decline in France and Spain. Moreover, the wealth of the Low Countries, industrially, commercially, and financially the most advanced region of sixteenth-century Europe, made them an attractive target for the Hapsburg bureaucracy, harried as it was by the gargantuan task of financing the wars of Charles V and Philip II.


1985 ◽  
Vol 22 ◽  
pp. 251-274
Author(s):  
A.D. Wright

From the vividly autobiographic Life of St Teresa famous images of conventual life in sixteenth-century Spain have been derived; both the dark impression of unreformed monastic existence and the heroic profile of reformed regulars. Before and after that era the social, not to say political prominence of certain figures, friars and nuns, in Spanish life is notorious, from the reigns of the Catholic Monarchs to that of Philip IV and beyond. Modern historical research has indeed highlighted the contribution to political and ecclesiastical development, to early Catholic reform above all, of key members of the regular clergy under the Catholic Monarchs. For monastics, as opposed to mendicants, in post-medieval Spain, the extensive and meticulous researches of Linage Conde have put all Iberian scholars in his debt. The fascinating origins of the essentially Iberian phenomenon of the Jeronymites have recently received new attention from J.R.L. Highfield, but further insights into the true condition of the religious life in the Iberian peninsula of the supposedly Golden Age are perhaps still possible, when unpublished material is consulted in the Roman archives and in those of Spain, such as Madrid, Simancas, Barcelona and Valencia. Considerations of space necessarily limit what can be suggested here, but the development of monastic life in Counter-Reformation Spain is arguably best considered in its extended not just in its stricter sense: for parallels and contrasts, as well as direct influences, were not confined by the normal distinctions between the eremitic and the monastic, the monastic and the mendicant, the old and the new orders, or even the male and female communities. Furthermore the intervention of Spanish royal authority in Portuguese affairs between 1580 and 1640, not least in ecclesiastical and regular life, provides a useful comparative basis for consideration of truly Iberian conditions.


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