GAME OF LOANS
Westeros is in the grip of a sovereign debt crisis. Queen-Mother Cersei needs to hire an economic advisor before the money runs out
As Queen-Mother Cersei undertook her walk of shame through the streets of the capital at the end of the last season of “Game of Thrones”, she was surely plotting vengeance on those responsible for her humiliation. But she was probably also wondering exactly how she found herself in such an unfortunate situation. One reason unlikely to occur to the embattled queen is her financial naivety – namely, her failure to grasp the catastrophic nature of her fiscal policy for the Seven Kingdoms.
In a 2014 interview with
Rolling Stone magazine, George R. R. Martin, the author of “A Song of Ice and Fire” (the series on which the HBO show is based), complained that fantasy authors often fail to engage with economics. “As much as I admire Tolkien, I do quibble with him… What was Aragorn’s tax policy?” Martin – unlike Cersei – has thought deeply about the economic systems underpinning his imagined world, so it’s worth taking a closer look at how they function. For Cersei’s predicament, it turns out, largely derives from her failure to understand the nature of international credit.
Across the sea from the capital King’s Landing, in the Free City of Braavos, is the Iron Bank of Braavos, the dominant financial institution on the continents of Essos and Westeros. Martin modelled the Iron Bank on medieval banks controlled by powerful families from the cities of northern Italy. They provided credit, deposit, loan and foreign exchange services all across western Europe. Bankers from Florence and Lucca worked with the English crown under Kings Edward I, II and III, financing the kingdom’s wars on various fronts (especially France) and offering both current account and overdraft facilities. Edwards II and III even agreed to turn over all their revenue to two particular banking houses; they paid the kings’ budgets and, in return, were allowed to exercise a monopoly over the country’s most important export, high-quality English wool. ...
https://www.1843magazine.com/culture/the-daily/game-of-loans