Gold, silver, and the Glorious Revolution: arbitrage between bills of exchange and bullion

Arbitrage between bullion and bills of exchange transmitted exchange rate shocks to early modern England's monetary stock. The country's entry into the Nine Years War following the Glorious Revolution of 1688 weakened the pound's exchange rate which ended a period of gold imports into England and began a period of silver exports. The success of this international arbitrage was built on innovative intermediaries such as the London goldsmith-banker Stephen Evance. This article shows how he channelled international bullion flows and arranged for complementary financial services that facilitated arbitrage between bills of exchange and bullion.