HIS109Y1 Lecture Notes - Lecture 3: Feudalism, Peruzzi
Document Summary
Where did the money come from: feudalism began to collapse and with a rush for independent sovereignty, these. Lords began minting coins: these coins were only circulated locally, really no one was able to build a money economy. It allowed for enterprises to expand, encouraged greater employment, and encouraged investment. In order to help financing, double-entry book-keeping was invented in genoa. It drove the bardi and peruzzi family into the ground along with thousands of investors: trade and economic activity dried up. What fixed this: the coming of the black death (plague) in 1348-1389 helped europe, 50% of the population died so there was a sellers market for labor. But if you stopped payment, the deal was shut down. Money didn"t actually need to be transferred, they gave them a piece of paper that would allow them to withdraw money under certain conditions.
