2.5 Henry VIII's Economy

Question 1

How did trade perform under Henry VIII?

Answer 1

English trade increased throughout the beginning of the 16th Century, with trade exports almost doubling.

Enclosure rose too, with pastoral farming being the most effective way to earn money.

Question 2

How did exploration perform under Henry VIII?

Answer 2

Henry VIII made no attempts to build on exploration achievements. Merchants failed to receive royal support to explore.

Question 3

What was the Great Debasement of 1544?

Answer 3

This was when Henry VIII lowered the intrinsic value of the coinage by removing valuable precious metals such as gold and silver and substituting them for copper.

He did this in order to fund his foreign wars.

Question 4

What were the pros and cons of the Great Debasement 1544?

Answer 4

+ Increased the revenue of the crown, which Henry VIII could use the money for funding wars

+ It decreased the cost of making coinage

• Led to high levels of inflation, depression and poverty
• Made trading hard, as there were different levels of coins purity
• Made it easier for poorer foreign coins to circulate around England