Confidence of Financial Markets in a Dictatorship – Portugal 1926–1974

This paper discusses the confidence of financial markets in the Portuguese public debt during the period of military dictatorship (1926–1933) and authoritarian regime (1933–1974). It concludes that the military dictatorship and the authoritarian regime enjoyed a good relationship with financial markets, except at the beginning, as a consequence of the problems resulting from World War I , and at the very end, as a consequence of the impact of the first oil shock.