Was there a contemporary understanding that 1706 was an exceptionally poor year?

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It's impossible to prove the negative, but such statements are unlikely to be found because bad years were frequent and nobody was tracking the data at the time. The data shows that 1706 wasn't an especially bad year, just that it might have been slightly worse than the others compared to the immediate year previous. Similarly steep annual declines had been seen before and without official data, the relatively small difference estimated to have existed between 1706 and other bad years would have been imperceptible. It wasn't until the twentieth century that statements like "the economy is bad this year" became common sense. Before that, only if there were several very bad harvests a few years in a row (as in the 1840s potato blight) would I expect the historical record to show people noticing something unusual.

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