Both these strands, however, require that the fiscal authorities will either eventually require the monetary authorities to monetize the debt or convince the financial markets that, ultimately, the fiscal authority will have the upper hand.
In fact, the Netherlands was one of the earliest centers of innovation in finance as we know it. For example, Amsterdam was the location of the world’s first stock exchange, established in 1602. The province of Holland was the first sovereign to issue bonds in the modern sense, backed by the tax revenues of the sovereign.