Researchers from University of Queensland Provide Details of New Studies and Findings in the Area of Investment (Interest Groups and Central Bank Credit Policies: Evidence From 1600-1914): Investment

2025 APR 10 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Investment is the subject of a report. According to news reporting out of Brisbane, Australia, by NewsRx editors, the research stated, “Before the 19th century, nearly all central banks financed government spending, but as the centuries passed direct government financing became taboo. Using original data from 69 central banks established between 1600-1914, this study traces a shift away from government financing and towards increased support for private sector credit via discounting commercial bills of exchange beginning in the 18th century.”

Our news journalists obtained a quote from the research from the University of Queensland, “What drove this transformation in central bank credit policies? Evidence suggests that central bank credit policies are driven by the composition of a government’s supporting coalition, rather than structural economic forces. Security-minded interest groups motivate governments to establish central banks that lend back to themselves, while economic interest groups motivate governments to establish central banks that discount bills of exchange. Discrete time survival analysis supports these contentions.”

According to the news editors, the research concluded: “This research highlights how political-historical context and the preferences of specific interest groups shaped the long-term evolution of central banking.”

This research has been peer-reviewed.

For more information on this research see: Interest Groups and Central Bank Credit Policies: Evidence From 1600-1914. Comparative Political Studies, 2025. Comparative Political Studies can be contacted at: Sage Publications Inc, 2455 Teller Rd, Thousand Oaks, CA 91320, USA. (Sage Publications - http://www.sagepub.com/; Comparative Political Studies - cps.sagepub.com)

Our news journalists report that additional information may be obtained by contacting Michael A. Gavin, University of Queensland, Brisbane, Qld, Australia.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/00104140251328008. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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