翻译题 7.In England in the early 17th century, the Stuart monarchy, to finance its expenditures, increasingly resorted to "forced loans"—where the lender had no recourse if loans were not repaid.
This practice was one of many highly visible signs that the regime had no commitment to protecting property rights. Other indications include outright confiscation of land and funds, forced public procurement at below-market prices, a willingness to remove judges who ruled against the Crown, and the sale of monopoly rights over various lucrative economic activities. This arbitrary exercise of sovereign power was interrupted during the civil war in the middle of the century, but the restoration of the monarchy was accompanied by the return of the same excesses.
The Glorious Revolution of 1688 ushered in a series of fundamental changes in political institutions that limited the arbitrary exercise of power by the sovereign. The revolution established the supremacy of parliament over the taxes and audit of the expenditures of the Crown. These steps were followed by the establishment of the Bank of England, which exercised important control over public finances. The result of these changes was a more equitable division of power between the executive, legislative, and judicial branches of government. These restraints on the arbitrary exercise of power greatly enhanced the state' s ability to finance public expenditures by issuing debt.
The impact of these changes in political institutions and in the protection of property rights can be seen in the development of debt markets. In 1688 the Crown was able to place public debt equivalent to only 2 to 3 percent of GDP—and only of very short maturity and at very high interest rates. By 1697 the Crown was able to place and service debt equivalent to 40 percent of GDP, at lower interest rates and with longer maturities. The emergence of a functioning public debt market in turn benefited the development of the private capital markets that helped finance the Industrial Revolution that followed.