ECO 120 Study Guide - Final Guide: Absolute Monarchy
North & Weingast (1989)
What is the main research question?
How can the government establish systems of commitment that help to limit the
power of the monarch? (More specifically, in England after the Glorious
Revolution)
Why is the question interesting?
The Glorious Revolution and the events in England that followed inspired other
countries to act and form their governments similarly. Therefore, asking the
question not only gives enlightenment to English economics and politics, but to
America’s and other nations’ as well.
What are the main objects/ideas?
England’s Constitution after the Glorious Revolution
oThe Glorious Revolution occurred when Parliament (a less significant
body at the time) invited a neighboring ruler to overthrow King James II
oConsequently, the monarch became more of a figurehead and less
significant in the government
Parliament played a significant role in the new system set forth after the
Glorious Revolution
oLaws had to be passed through the consent of Parliament
Constitution was set up so that the people could trust the government and
trust that their money was going to be taken care of and paid back
oPrior to the Revolution, citizens were forced to give loans to
the government with no promise that their money would be repaid
Parliament was given the exclusive right to tax and anything having to do
with private gain had to be put through Parliament first
Parliament was also given the power to allocate funds
How does the author go about answering the question?
The author discusses how monopolies are bad for the economy and an absolute
monarch with unchecked power is essential a monopoly. In order for a consumer
relationship to work (or in this case, one where citizens need to get money from
the government), trust needs to exist. For trust to exist, the monarch needs to
have some type of commitment to follow rules and pay back money to the
people.
Prior to the Glorious Revolution, institutions worked for the crown. After, they
were under the control of Parliament, which worked for the people and for the
economic and political benefit of the people.
What is the answer/result?
Giving Parliament more power over institutions in England allowed for economic
growth in England and proved the ineffectiveness of the crown prior to the
Glorious Revolution. In the rise of economic prosperity, political and social
liberties grew as well.
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Document Summary
How can the government establish systems of commitment that help to limit the power of the monarch? (more specifically, in england after the glorious. The glorious revolution and the events in england that followed inspired other countries to act and form their governments similarly. Therefore, asking the question not only gives enlightenment to english economics and politics, but to. Parliament played a significant role in the new system set forth after the. Laws had to be passed through the consent of parliament. Constitution was set up so that the people could trust the government and trust that their money was going to be taken care of and paid back. Prior to the revolution, citizens were forced to give loans to o the government with no promise that their money would be repaid. Parliament was given the exclusive right to tax and anything having to do with private gain had to be put through parliament first.
