92 By the middle of the twelfth century , export of European silver in the form of bars , ingots , and coins increased to quantities large enough to allow for the resumption of mintage at certain locations in the Middle East .
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Author: S. M. H. Bozorgnia
Publisher: Praeger
ISBN: STANFORD:36105023150126
Category: Business & Economics
Page: 209
View: 938
Tracing European monetary history, this study explores the impact of species, in the form of money, on the economic evolution of Europe, showing how change in the availability and use of money was a key factor in Europe's economic development. During the Roman period, accumulation and circulation of large quantities of bullion allowed for economic prosperity. Over time, shortages of species rendered Roman coinage worthless and caused the breakdown of their economic and political systems. In the early Middle Ages, lack of liquidity limited commercial activities and enabled feudalism to flourish. In the 10th century, the discovery of rich silver mines increased the circulation of coinage, promoting trade and demographic urbanization. Continued circulation of accredited currency in the 12th and 13th centuries silver boosted economic prosperity. Shortages of bullion in the 14th century induced debasemnts and a severe scarcity of money, leading to the eventual breakdown of the feudal economic order. Continuous shortages in the 15th century forced the reintroduction of barter trade and limited commercial activities. Scarcity of precious metals induced the Portuguese to venture into Africa. African gold provided them with the incentive and capital for expeditions of discovery to the East, but the lack of sufficient bullion prevented them from monopolizing the eastern trade. In the 16th century the influx of species from the mines of central Europe and America ended the European bullion famine and gave rise to economic prosperity.