Corpus ID: 18847100

East India Bonds, 1718-1763 Exotic Derivatives, Efficiency, and the Financial Revolution

  title={East India Bonds, 1718-1763 Exotic Derivatives, Efficiency, and the Financial Revolution},
  author={P. Marco and Camila Vam Malle},
Were 18 th century financial markets efficient? Neal (1990) shows that the London and Amsterdam markets were integrated. Yet some scholars find that the London capital market was either not integrated across various classes of securities, or was comprised of ignorant investors who were not knowledgeable enough to arbitrage across securities with different maturities, or was even irrational at times. In this paper, we demonstrate that this misunderstanding arises from an incorrect comprehension… Expand
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