The Glorious Revolution was when William of Orange took the English throne from James II in 1688. The event brought a permanent realignment of power within the English constitution. The new co-monarchy of King William III and Queen Mary II accepted more constraints from Parliament than previous monarchs had, and the new constitution created the expectation that future monarchs would also remain constrained by Parliament. The new balance of power between parliament and crown made the promises of the English government more credible, and credibility allowed the government to reorganize its finances through a collection of changes called the Financial Revolution. A more contentious argument is that the constitutional changes made property rights more secure and thus promoted economic development.Tension between king and parliament ran deep throughout the seventeenth century. In the 1640s, the dispute turned into civil war. The loser, Charles I, was beheaded in 1649; his sons, Charles and James, fled to France; and the victorious Oliver Cromwell ruled England in the 1650s. Cromwell’s death in 1659 created a political vacuum, so Parliament invited Charles I’s sons back from exile, and the English monarchy was restored with the coronation of Charles II in 1660.The Restoration, however, did not settle the fundamental questions of power between king and Parliament. Indeed, exile had exposed Charles I’s sons to the strong monarchical methods of Louis XIV. Charles and James returned to Britain with expectations of an absolute monarchy justified by the Divine Right of Kings, so tensions continued during the reigns of Charles II (1660-1685) and his brother James II (1685-88). Table 1 lists many of the tensions and the positions favored by each side. The compromise struck during the Restoration was that Charles II would control his succession, that he would control his judiciary, and that he would have the power to collect traditional taxes. In exchange, Charles II would remain Protestant and the imposition of additional taxes would require Parliament’s approval.