Sheilagh Ogilvie, 23 December 2015

A vocal set of economists argue that economies can succeed in the absence of strong state and public institutions. This column looks to the ‘Champagne fairs’ of medieval Europe for lessons in how important public institutions can be. Public authorities are crucial – for good or for ill. When rulers provided these as generalised institutional services to everyone, the Champagne fairs flourished. When they granted them to privileged groups only, trade declined and business moved elsewhere.

CEPR Policy Research