Chapter 14.5: Toward a World Economy (1)

  1. High Middle Ages= new opportunities in __economy 15th:__activity and __
    • agrarian
    • commercial
    • world market
  2. Economic Conditions in the Sixteenth Century

    a.      __was major economic problem in 16-17th

    Price Revolution
    • Inflation 
    • 1.      Inflation rate low, but noticeable in Europe with stable prices
    • a.      Foodstuffs increased in price
  3. Inflation
    Result of inflation
    • 1.      Result: wages failed to keep up with price increases
    • a.      Wage earners saw standard of living drop, while landed aristocrats raised rents and prospered
    • b.      Commercial and industrial entrepreneurs benefited from price revolution because of rising prices, expanding markets, and cheaper labor costs
    •                                                                                                                                       i.      Stimulus to investment and growth of capitalism
    • c.       Governments affected, causing borrowwng heavily from bankers and imposing new tax burdens on their subjects, often stirring additional discontent
  4. Inflation
    • a.      May be rise in prices due to great influx of precious metals form New World
    • b.      May be increase in population created inflationary pressures
    •                                                                                                                                       i.      Growing population increased demand for land and food and drove up prices for both
Card Set
Chapter 14.5: Toward a World Economy (1)
Europe and the World: New Encounters, 1500-1800