The Case of the Undying Debt
42 Pages Posted: 1 Dec 2009
Date Written: November 24, 2009
Abstract
The French government currently honors a very unusual debt contract: an annuity that was issued in 1738 and currently yields €1.20 per year. I tell the story of this unique debt, which serves as an anecdotal but symbolic summary of French public finances since the 18th century.
Keywords: life annuities, government debt, default, Bouillon
JEL Classification: N13, H63
Suggested Citation: Suggested Citation
Velde, Francois R., The Case of the Undying Debt (November 24, 2009). FRB of Chicago Working Paper No. 2009-12, Available at SSRN: https://ssrn.com/abstract=1514417 or http://dx.doi.org/10.2139/ssrn.1514417
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