The Swedish Salt Market during the Great Northern War

Abstract

The purpose of this article is to examine the effects of the great naval blockade on the Swedish salt market during the Great Northern War (1700–1721). Whether or not salt can be perceived as a strategic good subject of wartime shortage is important in interpreting the reasons behind the famous Swedish Navigation Act of 1724. New research claims that the Navigation Act was a welfare enhancing institution, as it helped to secure salt imports. This essay shows that although Sweden was at war with most European Great Powers and the subject of sea blockades during the Great Northern War, the salt market still worked remarkably well. Neither supply nor salt movements show any signs of a great crisis. Thus, there was no need to secure salt imports during the period of peace that followed. Consequently, the Swedish Navigation Act had little to do with welfare but more with rent seeking and monopolies on the freight market.     

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Has the Fed improved U.S. economic performance?

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