Define and analyze the “price revolution” in terms of 16th-century Europe. How does this relate to the rise of capitalism? What is the evidence that the price revolution took place?
The term “Price Revolution” refers to the rapid period of economic growth between the 16th and 17th centuries, as expressed by unprecedented rates of inflation. While they were not extremely lofty by modern standards, it was significant because prices had stayed essentially the same for hundreds of years; hence the price “revolution”. The price of commodities greatly increased due to several factors. One factor was the growing population. With more people and high demand, merchants and local business owners were able to charge more. Expanded trade across the Indian Ocean as well the Baltic Sea was important in supplying the highly coveted goods to merchants all over western Europe. However the main constituent that most experts attribute the Price Revolution to was the newly discovered silver mines in Europe and the imports of silver and gold from the New World. This allowed for increased production of money in coins, which helped to stimulate the trading economy. This important period of economic growth in Europe fostered a new system of economics that would change the world. This new system relied on supply and demand and fluctuating prices. These new ideals and practice are what evolved into our modern system of economics called capitalism.
The term “Price Revolution” refers to the rapid period of economic growth between the 16th and 17th centuries, as expressed by unprecedented rates of inflation. While they were not extremely lofty by modern standards, it was significant because prices had stayed essentially the same for hundreds of years; hence the price “revolution”. The price of commodities greatly increased due to several factors. One factor was the growing population. With more people and high demand, merchants and local business owners were able to charge more. Expanded trade across the Indian Ocean as well the Baltic Sea was important in supplying the highly coveted goods to merchants all over western Europe. However the main constituent that most experts attribute the Price Revolution to was the newly discovered silver mines in Europe and the imports of silver and gold from the New World. This allowed for increased production of money in coins, which helped to stimulate the trading economy. This important period of economic growth in Europe fostered a new system of economics that would change the world. This new system relied on supply and demand and fluctuating prices. These new ideals and practice are what evolved into our modern system of economics called capitalism.