HIST BC 3116y Lecture Notes - Lecture 12: Price Revolution, Fractional-Reserve Banking
1 Nov 2016
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History of money - lecture 12 (24 february 2019) Money creation: simplest form for how money works today, changes the nature of the deposit, changes the notion of money, monetizing assets through this model (fractional reserve banking) Commodities fall in value and it disrupts the bank sheets. Medici banking: multiple branches of the bank allowed security. One branch went bankrupt, all other branches are fine. French and german banking houses arose after the fall of the medici. Entering the 13th, 14th and 15th century (great bullion family) Themes: money and empire, relationship between money and wealth, relationship between money and economic growth, trade and commerce become more important, gradual association between people and money, rapid re-monetization of money in europe. Czech republic w/ silver mines: bank money and bill of exchange allowed for more money to enter economy because gold and silver were limited, trade with asia depleted gold and silver count.
