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

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

Francois R. Velde (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Economic Research
Chicago, IL 60604-1413
United States
(312) 322-2526 (Phone)
(312) 322-2357 (Fax)

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