HIS109Y1 Lecture 5: HIS109Y1 09:28 Towns, Commerce and Economic Change
Document Summary
Feudalism breaking down with intro of cash money. Enourmous funding: italian ports, new horses, food, servants, conquer jeruselem. Economic imperialism : sophisticated economies, greek byzantine, islamic enemies, need to win loyalties. Europeans had to find cash: liquid assets . Nobody w/deep enough economy to sustain cash economy. No means to engage in long distance trade. Money of account : international trade based around stable economy sophisticated growth in italy foundation. Double entry book keeping invented in genoa: tighter account of in and out owed/owing system of investment shared economic activity. Wealth merchants class of townsmen gaining experience to run towns and finances. Economic revolution laid foundation of political rev that would come later. Commenda: legal contract, used for one voyage eg venice to constantinople, investors in trade missions, less capital investors took voyages, investors, sailors, insurers. Successes in business resulted in: venture capitalism, trade expanded into groups of individuals, greater and greater wealth. Risks: 1343, florentine banks, bardi, peruzi.
