Changing volatility of long-term UK interest rates during Pax Britannica

It is generally believed that the political and economic stability pertaining during the heyday of Britain's imperial power contributed to reduced uncertainty in the UK financial markets at that time. Employing quite a unique data set for the sample period spanning 1850-1914, we examine in this study the stability of four long-term UK interest rates, including the yield on Consols. Although we find some evidence for changing volatility in three interest rates, it appears that overall the interest rates did indeed exhibit remarkable stability over the long sample period.