Vasteras has collected a lot of debts, the Seven Kingdoms budget has long been unable to cope with the costs and default close.
In the fantastic reality created by writer George Martin, there are many fictions: dragons, falconers, White Walkers. At the same time, the Martinov world works according to the same laws as the real world. The main attention of readers and spectators is focused on the struggle for the Iron Throne. At the same time, in the second plan, the main means by which the struggle is fought is money.
The financial condition of the Seven Kingdoms of Westeros is unenviable. The monarchy spent a lot of money, while incomes did not allow such costs. Moreover, the funds were spent on feasts and chivalric tournaments, and not invested in long-term growth - infrastructure construction, for example.
As a result,
the kingdom has accumulated a great debt: three million gold dragons in front of the Lannister family, two million in front of the Iron Bank, and another one million before the Church of the Seven. Revenues allow you to pay only interest on debt. A big debt is not a disaster if the economy grows. The growth of public spending can strengthen GDP if funds are spent on infrastructure construction, public goods and capital investments. However, as already mentioned, the kings took more care of entertainment.
After the death of Robert Baratheon, war broke out. The new expenses worsened the financial condition of Västerås - the crops began to decline, the villagers started running to escape the marauders. This led to a sharp reduction in taxes, and then winter is coming. Cultivation of fields in the frost is impossible, so that Västerås farmers and the royal treasury are facing hard times. In this situation, the state has three options: raise taxes, print more money or borrow. The last transaction is not available due to a large debt, there is no money to print, since the currency in Västerås is commodity (gold, silver, copper), and not phyat (paper money). It remains only to raise taxes, which is what the Seven Kingdoms do.
However, the Master over the coin, Petir Beilish, nicknamed "Little finger", has come up with something like a quantitative easing - practices that are inherently close to printing money. The royal treasurer had the gift - he could rub two coins one against another and get a third, the book says. That is, "Little finger" reduces the volume of gold in coins, reducing their actual value.
The financial system
Beilish might have come out a good head of the Central Bank, but in Västerås there was no regulator. Economist Adam Osimek from Moody's Analytics was interested in whether it is possible in the Seven Realms of the existence of the Central Bank. If so, the monarchy was able to move from primitive commodity money to a phiatic system. In that case, one could not cheat, remelting coins, and simply print money, as do all civilized CB.
Vasteras has collected a lot of debts, the Seven Kingdoms budget has long been unable to cope with the costs and default close. In the fantastic reality created by writer George Martin, there are many fictions: dragons, falconers, White Walkers. At the same time, the Martinov world works according to the same laws as the real world. The main attention of readers and spectators is focused on the struggle for the Iron Throne. At the same time, in the second plan, the main means by which the struggle is fought is money.
The financial condition of the Seven Kingdoms of Westeros is unenviable. The monarchy spent a lot of money, while incomes did not allow such costs. Moreover, the funds were spent on feasts and chivalric tournaments, and not invested in long-term growth - infrastructure construction,
for example.
As a result, the kingdom has accumulated a great debt: three million gold dragons in front of the Lannister family, two million in front of the Iron Bank, and another one million before the Church of the Seven. Revenues allow you to pay only interest on debt. A big debt is not a disaster if the economy grows.
The growth of public spending can strengthen GDP if funds are spent on infrastructure construction, public goods and capital investments. However, as already mentioned, the kings took more care of entertainments.Screenshot: Game of Thrones, HBOAfter the death of Robert Baratheon, the war began.
The new expenses worsened the financial condition of Västerås - the crops began to decline, the villagers started running to escape the marauders. This led to a sharp reduction in taxes, and then winter is coming. Cultivation of fields in the frost is impossible, so that Västerås farmers and the royal treasury are facing hard times. In this situation, the state has three options: raise taxes, print more money or borrow.
The last transaction is not available due to a large debt, there is no money to print, since the currency in Västerås is commodity (gold, silver, copper), and not phyat (paper money). It remains only to raise taxes, which is what the Seven Kingdoms do. However, the Master over the coin, Petir Beilish, nicknamed "Little finger", came up with something like a quantitative easing.