Money, Banking and Politics in Early Nineteenth-Century Portugal

Abstract

The creation of the Bank of Lisbon in December 1821, in the context of the Portuguese liberal revolution of 1820, provides a pretext for examining the main monetary and financial problems of the time, taking into account the particular period of political change and the possibility that it provided for a wider discussion of this subject at various civil society institutions. Public debt management and the control of paper money in circulation are central themes for understanding the origins of, and the motivation for, the modern organization of banking. These themes invaded the public debate and promoted the confrontation and convergence of different views on monetary and financial issues in which the credibility and trust in the State were at stake. The Portuguese case also enables us to better understand the rhetorical use of political economy in the course of political action, particularly in matters of a monetary and financial nature.